Dharmaj Crop Guard Ltd. (DHARMAJ) AI Stock Analysis

1 Followers

Dharmaj Crop Guard Ltd.

(NSE:DHARMAJ)

Select Model

Rating:54Neutral

Price Target:INR 244.00▲(2.09% Upside)

Action:reiterated

Date:09/06/26

Dharmaj Crop Guard scores below average, weighed down primarily by persistently negative free cash flow and poor conversion of profits into cash, alongside eroding margins and a sharply lower return on equity despite impressive top-line growth. A manageable debt-to-equity ratio of ~0.29 and a substantially enlarged equity base provide some financial stability. Technicals are mildly supportive, with the price holding above its 50-, 100- and 200-day averages amid neutral momentum readings, and the 15.2x P/E is reasonable for the growth on offer. The stock is best viewed as an investment-phase business where confirmation of margin expansion and positive free cash flow would be needed to justify a higher rating.

Positive Factors

Strong Revenue ExpansionRevenue has expanded substantially over five years, demonstrating meaningful business scaling and sustained demand for the company’s products. This larger operating base can support broader distribution, product investment, and improved earnings potential as the business continues to develop.

Negative Factors

Weak Operating Cash ConversionOperating cash flow is converting only a modest portion of reported profit into cash, which weakens earnings quality and internal funding capacity. If this persists, the company may have less cash available for reinvestment, debt service, or absorbing changes in operating requirements.

Dharmaj Crop Guard Ltd. (DHARMAJ) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 8.07B
Dividend Yield: ―
Average Volume (3M): 3,295
Price to Earnings (P/E): 14.4
Beta (1Y): 0.84
Revenue Growth: 3.57%
EPS Growth: 15.20%
Country: India
Employees: 803
Sector: General
Sector Strength: 55
Industry: Agricultural Inputs

Dharmaj Crop Guard Ltd. Business Overview & Revenue Model

Company Description

Based in Ahmedabad, India, Dharmaj Crop Guard Limited operates as a key player in the Indian agrochemical sector. The company specializes in the production, supply, and marketing of a diverse array of agricultural chemical solutions. These include es...

Dharmaj Crop Guard Ltd. Financial Statement Overview

Summary

Revenue has scaled nearly 4x since FY2021 to an estimated ₹11.38 billion in FY2026, but the quality of that growth is questionable. Margins have compressed materially (net margin down from ~7.3% in FY2022 to ~3.7% in FY2025, gross margin falling to ~16% in FY2026), and return on equity has dropped from ~37% to ~8.8%, only partially explained by post-IPO dilution. The balance sheet is the relative strength, with debt-to-equity improving to ~0.29 and equity expanding to ~₹4.49 billion, though absolute debt has climbed to ₹1.32 billion. The decisive weakness is cash flow: free cash flow has been negative in most years (-₹1.83 billion in FY2024, -₹126 million projected in FY2026) and operating cash flow converts poorly against reported net income, signalling heavy working capital/capex intensity and potential reliance on external funding.

Income Statement

52Neutral

Balance Sheet

55Neutral

Cash Flow

32Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	11.38B	11.38B	9.51B	6.53B	5.22B	3.88B
Gross Profit	1.97B	1.83B	2.07B	1.31B	904.92M	793.02M
EBITDA	1.07B	1.09B	769.27M	660.78M	456.35M	462.25M
Net Income	560.40M	546.46M	348.25M	443.76M	268.60M	286.90M
Balance Sheet
Total Assets	9.32B	8.41B	7.33B	5.63B	4.32B	2.20B
Cash, Cash Equivalents and Short-Term Investments	66.90M	64.69M	32.72M	29.99M	1.25B	9.52M
Total Debt	1.19B	1.32B	1.16B	1.12B	524.17M	369.28M
Total Liabilities	4.32B	3.92B	3.39B	2.04B	1.17B	1.35B
Stockholders Equity	5.00B	4.49B	3.94B	3.59B	3.15B	849.18M
Cash Flow
Free Cash Flow	0	-126.15M	65.60M	-1.83B	-928.33M	-72.41M
Operating Cash Flow	0	143.00M	386.80M	73.85M	-237.16M	164.11M
Investing Cash Flow	0	-294.33M	-329.01M	-620.25M	-1.91B	-238.65M
Financing Cash Flow	0	151.81M	-85.49M	572.15M	2.14B	74.53M

Dharmaj Crop Guard Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price239.00

Price Trends

50DMA262.85Negative

100DMA264.08Negative

200DMA259.24Negative

Market Momentum

MACD-6.54Positive

RSI35.66Neutral

STOCH16.13Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DHARMAJ, the sentiment is Negative. The current price of 239.00 is below the 20-day moving average (MA) of 248.74, below the 50-day MA of 262.85, and below the 200-day MA of 259.24, indicating a bearish trend. The MACD of -6.54 indicates Positive momentum. The RSI at 35.66 is Neutral, neither overbought nor oversold. The STOCH value of 16.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DHARMAJ.

Dharmaj Crop Guard Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:DHARMAJ against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:DHANUKA	73Outperform	INR 40.27B	14.51	―	0.22%	-0.06%	0.75%
IN:INSECTICID	66Neutral	INR 15.74B	12.29	―	0.92%	1.26%	-16.43%
IN:BHARATRAS	63Neutral	INR 17.52B	7.71	―	0.05%	-5.17%	4.24%
IN:RALLIS	63Neutral	INR 36.79B	18.72	―	1.59%	6.82%	11.93%
IN:PIIND	58Neutral	INR 260.17B	29.63	―	0.58%	-14.95%	-41.96%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:DHARMAJ	54Neutral	INR 8.08B	14.40	―	―	3.57%	15.20%

* General Sector Average

Performance Comparison

IN:DHARMAJ and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:DHARMAJ	Dharmaj Crop Guard Ltd.	239.00	2.30	0.97%
IN:BHARATRAS	Bharat Rasayan Limited	1054.00	-1506.31	-58.83%
IN:DHANUKA	Dhanuka Agritech Limited	903.45	-365.10	-28.78%
IN:INSECTICID	Insecticides (India) Limited	541.00	-128.01	-19.13%
IN:PIIND	PI Industries Limited	1714.80	-1809.19	-51.34%
IN:RALLIS	Rallis India Limited	189.20	-57.98	-23.46%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 06, 2026

Dharmaj Crop Guard Ltd. AI Stock Analysis