Insecticides India Ltd is Rated Strong Sell

Current Rating and Its Significance

MarketsMOJO’s Strong Sell rating for Insecticides India Ltd indicates a cautious stance for investors, suggesting that the stock is expected to underperform relative to the broader market and its sector peers. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment, helping investors understand the risks and potential challenges facing the company.

Quality Assessment

As of 13 February 2026, Insecticides India Ltd holds an average quality grade. This reflects moderate operational efficiency and business fundamentals. While the company has demonstrated some growth over the past five years, with net sales increasing at an annualised rate of 8.11% and operating profit growing at 15.68%, these figures are not sufficiently robust to elevate the quality score. The average quality grade suggests that while the company maintains a stable business model, it faces challenges in delivering consistent superior growth compared to industry leaders.

Valuation Perspective

The valuation grade for Insecticides India Ltd is currently attractive. This implies that the stock is trading at a price level that may offer value relative to its earnings and asset base. Investors looking for potential bargains in the pesticides and agrochemicals sector might find this aspect appealing. However, attractive valuation alone does not offset other concerns, particularly when financial trends and technical indicators are weak.

Financial Trend Analysis

The financial grade is negative, signalling deteriorating financial health and operational performance. The latest quarterly results for December 2025 reveal a significant decline in profitability, with the PAT falling by 39.6% to ₹10.49 crores. Additionally, the company’s PBDIT for the quarter dropped to ₹27.39 crores, marking one of the lowest levels in recent periods. The debtor turnover ratio for the half-year stands at a low 3.18 times, indicating potential issues in receivables management and cash flow. These factors collectively point to weakening financial momentum, which weighs heavily on the overall rating.

Technical Indicators

Technically, the stock is graded as bearish. The price performance over various time frames reflects this trend: a 1-day decline of 1.98%, a 1-month drop of 4.35%, and a 6-month fall of 32.83%. Even though the stock has delivered a modest 6.68% return over the past year, the recent downward momentum and negative technical signals suggest caution. The bearish technical grade indicates that the stock may continue to face selling pressure in the near term, which is a critical consideration for traders and investors alike.

Stock Returns and Market Context

As of 13 February 2026, Insecticides India Ltd’s stock returns present a mixed picture. While the 1-year return is positive at 6.68%, shorter-term returns have been less encouraging, with a 14.89% decline year-to-date and a 32.83% drop over six months. The 1-week gain of 1.11% offers a slight respite but does not offset the broader negative trend. These returns reflect the challenges faced by the company amid sectoral pressures and internal financial weaknesses.

Sector and Market Position

Operating within the pesticides and agrochemicals sector, Insecticides India Ltd is classified as a small-cap company. The sector itself is subject to cyclical demand patterns influenced by agricultural cycles, regulatory changes, and commodity price fluctuations. The company’s current rating and financial metrics suggest it is struggling to maintain competitive momentum in this environment. Investors should weigh these sector-specific risks alongside the company’s fundamentals when considering exposure.

What This Rating Means for Investors

For investors, the Strong Sell rating serves as a cautionary signal. It suggests that the stock currently carries elevated risks due to weakening financial trends and bearish technical outlooks, despite its attractive valuation. Investors should carefully consider these factors before initiating or maintaining positions in Insecticides India Ltd. The average quality grade indicates that the company is not fundamentally flawed but is facing headwinds that may limit near-term upside potential.

Outlook and Considerations

Looking ahead, investors should monitor upcoming quarterly results and sector developments closely. Improvements in operational efficiency, receivables management, and profitability would be necessary to alter the current negative financial trend. Additionally, a shift in technical momentum could provide early signs of recovery. Until such changes materialise, the Strong Sell rating reflects a prudent approach to managing risk in this stock.

Summary

Insecticides India Ltd’s current Strong Sell rating by MarketsMOJO, updated on 30 January 2026, is grounded in a thorough analysis of quality, valuation, financial trends, and technical factors as of 13 February 2026. While the stock offers an attractive valuation, its negative financial trajectory and bearish technical signals outweigh this benefit. Investors should approach the stock with caution, recognising the challenges it faces within the pesticides and agrochemicals sector.

Key Metrics at a Glance (As of 13 February 2026)

• Mojo Score: 28.0 (Strong Sell)
• Market Capitalisation: Small Cap
• Quality Grade: Average
• Valuation Grade: Attractive
• Financial Grade: Negative
• Technical Grade: Bearish
• 1-Year Return: +6.68%
• 6-Month Return: -32.83%
• Quarterly PAT: ₹10.49 crores (down 39.6%)
• Quarterly PBDIT: ₹27.39 crores (lowest recent level)
• Debtors Turnover Ratio (Half Year): 3.18 times (lowest)

Investors should integrate these insights with their broader portfolio strategy and risk tolerance when considering Insecticides India Ltd.

Unlock special upgrade rates for a limited period. Start Saving Now →