Basant Agro Tech Faces Financial Struggles Amid Rising Debt and Flat Performance

Basant Agro Tech (India), a microcap player in the fertilizers industry, has recently undergone an evaluation adjustment that reflects its current financial standing. The company has reported flat financial performance for the quarter ending June 2025, with a profit after tax (PAT) of Rs 3.67 crore, which has shown a notable decline compared to previous periods. Additionally, the interest expense for the quarter has increased to Rs 3.88 crore, indicating a rise in financial obligations.
Long-term trends reveal a weak fundamental strength, highlighted by an average Return on Capital Employed (ROCE) of 8.50%. Over the past five years, net sales have grown at an annual rate of 9.80%, while operating profit has increased at a rate of 7.73%. The company's ability to service its debt is also a concern, as evidenced by a high Debt to EBITDA ratio of 3.35 times.

Despite these challenges, Basant Agro Tech is trading at a discount compared to its peers' average historical valuations, with an attractive valuation indicated by a 0.9 Enterprise Value to Capital Employed ratio. However, the stock has consistently underperformed against the benchmark, generating returns of -27.44% over the last year.

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