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Check Before You Invest : Harshil Agrotech Ltd

BSE: 505336 NSE: ISIN: INE098E01026
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does Harshil Agrotech Ltd belong to?
Harshil Agrotech Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is Harshil Agrotech Ltd a good quality company?
Harshil Agrotech 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 Harshil Agrotech Ltd undervalued or overvalued?
Harshil Agrotech Ltd appears Fair, as its key valuation ratios are in line with 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 - 2.58
Price to Book 0.25 0.40
Price to Sales 0.31 0.50
EV to EBITDA -14.99 2.33
Q.4 Is Harshil Agrotech Ltd a good buy now?
Harshil Agrotech 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 Harshil Agrotech Ltd?
Harshil Agrotech Ltd revenue growth is 391.3% for FY-2025, which is above its 5-year CAGR of 336.7%, indicating faster growth.

Q.2 Gross Profit margin of Harshil Agrotech Ltd?
Harshil Agrotech Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.5% for FY-2025, which is above its 5-year median of 8.4%, indicating increasing margins.

Q.3 Operating Profit Margin of Harshil Agrotech Ltd?
Harshil Agrotech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.27% for FY-2025, which is above its 5-year median of 7.67% indicating increasing margins.

Q.4 Net Profit Margin of Harshil Agrotech Ltd?
Harshil Agrotech Ltd Net Profit Margin is 16.36% for FY-2025, is above its 5-year median of 6.21%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 17.5 8.4
Operating Profit Margin (%) 17.27 7.67
Net Profit Margin (%) 16.36 6.21

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Harshil Agrotech Ltd?
Harshil Agrotech Ltd Return on Asset is 14.72%, which is in line with its 5-year historical median of 14.72%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Harshil Agrotech Ltd?
Harshil Agrotech Ltd Return on capital employed is 17.41% for FY-2025, which is in line with its 5-year historical median of 17.41%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

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

Q.7 Debt to Equity ratio of Harshil Agrotech Ltd?
Harshil Agrotech Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.18, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Harshil Agrotech Ltd?
Harshil Agrotech Ltd Debt to cash flow from operations is -0.01, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Harshil Agrotech Ltd?

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

Peer comparison (industry-wise, mcap)

E: How does Harshil Agrotech Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Harshil Agrotech Ltd vs industry peers?
Harshil Agrotech Ltd revenue CAGR is 336.70%, compared to the industry median CAGR of 3.04%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 391.3 3
Gross Profit Growth (%) 920.2 23.6
Operating Profit Growth (%) 1,008.1 21.7
Net Profit Growth (%) 1,198.8 27.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.9 0.89
ROE (%) - 12.09
ROCE (%) 17.41 14.64
Cash Conversion Cycle (days) 152.92 98

Valuation & price assessment

Q.1 Stock return of Harshil Agrotech Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 33.9% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
33.9% 49.2% 38.3% -78.5%
Q.2 Valuation ratios of Harshil Agrotech Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 2.58, 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 - 2.58 29.36
Price to Book 0.25 0.40 2.91
Price to Sales 0.31 0.50 2.93
EV to EBITDA -14.99 2.33 15.77

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