Why is Zuari Agro Chemicals Ltd ?
1
High Debt company with Weak Long Term Fundamental Strength
- Poor long term growth as Net Sales has grown by an annual rate of -3.28% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at 1.54 times
- The company has been able to generate a Return on Capital Employed (avg) of 8.85% signifying low profitability per unit of total capital (equity and debt)
2
With a fall in Net Sales of -75.84%, the company declared Very Negative results in Dec 25
- The company has declared negative results in Dec 25 after 2 consecutive negative quarters
- PBT LESS OI(Q) At Rs 31.46 cr has Fallen at -73.3% (vs previous 4Q average)
- PAT(Q) At Rs 42.58 cr has Fallen at -46.6% (vs previous 4Q average)
- OPERATING PROFIT TO INTEREST (Q) Lowest at 0.52 times
3
Stock is technically in a Mildly Bearish range
- A key technical factor - Bollinger Band has been Bearish since 15 Apr 2026
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Fertilizers)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Zuari Agro Chem. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Zuari Agro Chem.
12.66%
0.05
60.40%
Sensex
-4.95%
-0.64
13.06%
Quality key factors
Factor
Value
Sales Growth (5y)
-3.28%
EBIT Growth (5y)
17.66%
EBIT to Interest (avg)
1.50
Debt to EBITDA (avg)
5.84
Net Debt to Equity (avg)
0.28
Sales to Capital Employed (avg)
1.33
Tax Ratio
18.07%
Dividend Payout Ratio
4.95%
Pledged Shares
26.54%
Institutional Holding
2.92%
ROCE (avg)
9.62%
ROE (avg)
17.09%
Valuation Key Factors 
Factor
Value
P/E Ratio
4
Industry P/E
24
Price to Book Value
0.48
EV to EBIT
6.29
EV to EBITDA
5.10
EV to Capital Employed
0.59
EV to Sales
0.49
PEG Ratio
0.06
Dividend Yield
NA
ROCE (Latest)
9.40%
ROE (Latest)
12.68%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Movement
0What is working for the Company
NO KEY POSITIVE TRIGGERS
-32What is not working for the Company
PAT(Q)
At Rs -22.23 cr has Fallen at -129.0% (vs previous 4Q average
OPERATING PROFIT TO INTEREST (Q)
Lowest at -0.84 times
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 62.21 cr
NET SALES(Q)
Lowest at Rs 187.33 cr
PBDIT(Q)
Lowest at Rs -14.42 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at -7.70%
PBT LESS OI(Q)
Lowest at Rs -30.44 cr.
EPS(Q)
Lowest at Rs -5.95
Loading Valuation Snapshot...
Here's what is not working for Zuari Agro Chem.
Net Sales - Quarterly
At Rs 187.33 cr has Fallen at -81.1% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 991.09 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs -30.44 cr has Fallen at -129.8% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 101.99 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs -22.23 cr has Fallen at -129.0% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 76.74 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Operating Profit to Interest - Quarterly
Lowest at -0.84 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales - Quarterly
Lowest at Rs 187.33 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs -14.42 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at -7.70%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs -30.44 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs -5.95
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 62.21 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents