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Check Before You Invest : Bhaskar Agrochemicals Ltd

BSE: 524534 NSE: ISIN: INE972C01018
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Pesticides & Agrochemicals

Snapshot

Q.1 Which industry/sub-sector does Bhaskar Agrochemicals Ltd belong to?
Bhaskar Agrochemicals Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Pesticides & Agrochemicals segment.
Q.2 Is Bhaskar Agrochemicals Ltd a good quality company?
Bhaskar Agrochemicals Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Bhaskar Agrochemicals Ltd undervalued or overvalued?
Bhaskar Agrochemicals Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 12.93 17.93
Price to Book 3.43 2.53
Price to Sales 0.69 0.50
EV to EBITDA 7.71 8.73
Q.4 Is Bhaskar Agrochemicals Ltd a good buy now?
Bhaskar Agrochemicals Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Bhaskar Agrochemicals Ltd?
Bhaskar Agrochemicals Ltd revenue growth is 35.8% for FY-2025, which is above its 5-year CAGR of 11.79%, indicating faster growth.

Q.2 Gross Profit margin of Bhaskar Agrochemicals Ltd?
Bhaskar Agrochemicals Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.9% for FY-2025, which is above its 5-year median of 5.8%, indicating increasing margins.

Q.3 Operating Profit Margin of Bhaskar Agrochemicals Ltd?
Bhaskar Agrochemicals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10% for FY-2025, which is above its 5-year median of 8.63% indicating increasing margins.

Q.4 Net Profit Margin of Bhaskar Agrochemicals Ltd?
Bhaskar Agrochemicals Ltd Net Profit Margin is 4.31% for FY-2025, is above its 5-year median of 1.74%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 7.9 5.8
Operating Profit Margin (%) 10 8.63
Net Profit Margin (%) 4.31 1.74

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Bhaskar Agrochemicals Ltd?
Bhaskar Agrochemicals Ltd Return on Asset is 7.19%, which is above its 5-year historical median of 2.88%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Bhaskar Agrochemicals Ltd?
Bhaskar Agrochemicals Ltd Return on capital employed is 21.29% for FY-2025, which is above its 5-year historical median of 13.51%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Bhaskar Agrochemicals Ltd?
Bhaskar Agrochemicals Ltd Return on equity is 24.69% for FY-2025, which is above its 5-year historical median of 9.87%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Bhaskar Agrochemicals Ltd?
Bhaskar Agrochemicals Ltd Cash conversion cycle is 96 days, in line with its 5-year historical median of 95 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.67 1.67
ROE (%) 24.69 9.87
ROCE (%) 21.29 13.51
Cash Conversion Cycle 96 days 95 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Bhaskar Agrochemicals Ltd?
Bhaskar Agrochemicals Ltd Debt-to-Equity ratio is 1.14, which is above the industry average of 0.27, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Bhaskar Agrochemicals Ltd?
Bhaskar Agrochemicals Ltd Debt to cash flow from operations is 19.42, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Bhaskar Agrochemicals Ltd?

Q.1 Promoter shareholding and pledge status of Bhaskar Agrochemicals Ltd?
Promoters hold 65.40% of the Bhaskar Agrochemicals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Bhaskar Agrochemicals Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Bhaskar Agrochemicals Ltd vs industry peers?
Bhaskar Agrochemicals Ltd revenue CAGR is 11.79%, compared to the industry median CAGR of 8.45%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 35.8 8.5
Gross Profit Growth (%) 68.4 13.9
Operating Profit Growth (%) 49.3 14
Net Profit Growth (%) 124.1 14.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.67 1.19
ROE (%) 24.69 13.63
ROCE (%) 21.29 16.98
Cash Conversion Cycle (days) 96.46 93

Valuation & price assessment

Q.1 Stock return of Bhaskar Agrochemicals Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 32.88% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 32.9% 33.7% 114.7%
Q.2 Valuation ratios of Bhaskar Agrochemicals Ltd vs historical?
The current P/E ratio of 12.93 is lower than its historical median of 17.93, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 12.93 17.93 24.78
Price to Book 3.43 2.53 2.67
Price to Sales 0.69 0.50 1.43
EV to EBITDA 7.71 8.73 12.86

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