Check Before You Invest : Narmada Agrobase Ltd

Q: Which industry/sub-sector does Narmada Agrobase Ltd belong to?

Narmada Agrobase Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Agriculture segment.

Q: Is Narmada Agrobase Ltd a good quality company?

Narmada Agrobase Ltd is a weak quality company, based on a inconsistent 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: Is Narmada Agrobase Ltd undervalued or overvalued?

Narmada Agrobase Ltd appears 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. Price to Earnings, Current: 35.5, Historic Median: 35.85. Price to Book, Current: 2.31, Historic Median: 1.75. Price to Sales, Current: 1.85, Historic Median: 0.87. EV to EBITDA, Current: 23.14, Historic Median: 17.54

Q: Is Narmada Agrobase Ltd a good buy now?

Narmada Agrobase Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Narmada Agrobase Ltd?

Narmada Agrobase Ltd revenue growth is 30.5% for FY-2025, which is above its 5-year CAGR of 1.3%, indicating faster growth.

Q: Gross Profit margin of Narmada Agrobase Ltd?

Narmada Agrobase Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.2% for FY-2025, which is above its 5-year median of 3.2%, indicating increasing margins.

Q: Operating Profit Margin of Narmada Agrobase Ltd?

Narmada Agrobase Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.49% for FY-2025, which is above its 5-year median of 5% indicating increasing margins.

Q: Net Profit Margin of Narmada Agrobase Ltd?

Narmada Agrobase Ltd Net Profit Margin is 6.22% for FY-2025, is above its 5-year median of 1.74%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 8.2, Historic Median: 3.2. Operating Profit Margin (%), Current: 8.49, Historic Median: 5. Net Profit Margin (%), Current: 6.22, Historic Median: 1.74

Q: Return on Asset of Narmada Agrobase Ltd?

Narmada Agrobase Ltd Return on Asset is 8.66%, which is above its 5-year historical median of 2.67%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Narmada Agrobase Ltd?

Narmada Agrobase Ltd Return on capital employed is 13.04% for FY-2025, which is above its 5-year historical median of 8.1%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Narmada Agrobase Ltd

Snapshot

Q.1 Which industry/sub-sector does Narmada Agrobase Ltd belong to?

Narmada Agrobase Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Agriculture segment.

Q.2 Is Narmada Agrobase Ltd a good quality company?

Narmada Agrobase Ltd is a weak quality company, based on a inconsistent 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 Narmada Agrobase Ltd undervalued or overvalued?

Narmada Agrobase Ltd appears 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	35.5	35.85
Price to Book	2.31	1.75
Price to Sales	1.85	0.87
EV to EBITDA	23.14	17.54

Q.4 Is Narmada Agrobase Ltd a good buy now?

Narmada Agrobase Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 Narmada Agrobase Ltd?

Narmada Agrobase Ltd revenue growth is 30.5% for FY-2025, which is above its 5-year CAGR of 1.3%, indicating faster growth.

Q.2 Gross Profit margin of Narmada Agrobase Ltd?

Narmada Agrobase Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.2% for FY-2025, which is above its 5-year median of 3.2%, indicating increasing margins.

Q.3 Operating Profit Margin of Narmada Agrobase Ltd?

Narmada Agrobase Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.49% for FY-2025, which is above its 5-year median of 5% indicating increasing margins.

Q.4 Net Profit Margin of Narmada Agrobase Ltd?

Narmada Agrobase Ltd Net Profit Margin is 6.22% for FY-2025, is above its 5-year median of 1.74%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	8.2	3.2
Operating Profit Margin (%)	8.49	5
Net Profit Margin (%)	6.22	1.74

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Narmada Agrobase Ltd?

Narmada Agrobase Ltd Return on Asset is 8.66%, which is above its 5-year historical median of 2.67%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Narmada Agrobase Ltd?

Narmada Agrobase Ltd Return on capital employed is 13.04% for FY-2025, which is above its 5-year historical median of 8.1%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Narmada Agrobase Ltd?

Narmada Agrobase Ltd Return on equity is 11.24% for FY-2025, which is above its 5-year historical median of 4.74%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Narmada Agrobase Ltd?

Narmada Agrobase Ltd Cash conversion cycle is 180 days, above its 5-year historical median of 159 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.39	1.82
ROE (%)	11.24	4.74
ROCE (%)	13.04	8.1
Cash Conversion Cycle	180 days	159 days

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

Q.9 Debt to Equity ratio of Narmada Agrobase Ltd?

Narmada Agrobase Ltd Debt-to-Equity ratio is 0.17, which is above the industry average of 0.13, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Narmada Agrobase Ltd?

Narmada Agrobase Ltd Debt to cash flow from operations is -0.59, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Narmada Agrobase Ltd?

Q.1 Promoter shareholding and pledge status of Narmada Agrobase Ltd?

Promoters hold 50.30% of the Narmada Agrobase Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Narmada Agrobase Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Narmada Agrobase Ltd vs industry peers?

Narmada Agrobase Ltd revenue CAGR is 1.30%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	30.5	0
Gross Profit Growth (%)	150	15.2
Operating Profit Growth (%)	100	21.2
Net Profit Growth (%)	300	8.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.39	0.53
ROE (%)	11.24	7.6
ROCE (%)	13.04	8.57
Cash Conversion Cycle (days)	179.91	73

Valuation & price assessment

Q.1 Stock return of Narmada Agrobase Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 30.25% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	30.3%	32.4%	111.3%

Q.2 Valuation ratios of Narmada Agrobase Ltd vs historical?

The current P/E ratio of 35.5 is in line with than its historical median of 35.85, indicating that the stock is trading near 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	35.5	35.85	20.70
Price to Book	2.31	1.75	1.93
Price to Sales	1.85	0.87	1.89
EV to EBITDA	23.14	17.54	13.08

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Check Before You Invest : Narmada Agrobase Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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