Stock Performance and Market Context
On 17 Feb 2026, Nova Agritech’s stock price reached Rs.28.36, its lowest level in the past 52 weeks and also an all-time low. Despite this, the stock outperformed its sector by 1.31% on the day, showing a modest gain after five consecutive days of decline. However, the broader trend remains negative as the stock continues to trade below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent downward momentum.
In contrast, the Sensex opened flat and traded slightly higher, closing at 83,304.06, up 0.03%. The benchmark index remains 3.43% below its 52-week high of 86,159.02, supported by gains in mega-cap stocks. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating a mixed but relatively stable market environment.
Over the last year, Nova Agritech’s stock has declined by 45.05%, significantly underperforming the Sensex, which gained 9.62% during the same period. The stock’s 52-week high was Rs.62.86, highlighting the extent of the recent price erosion.
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Financial Performance and Profitability Trends
Nova Agritech’s recent financial results have contributed to the stock’s decline. The company reported a net sales drop of 27.97% in the December 2025 quarter compared to its previous four-quarter average. Quarterly net sales stood at Rs.66.55 crores, down 13.8% from the preceding four-quarter average. This contraction in sales volume has weighed heavily on profitability.
Profit after tax (PAT) for the quarter was Rs.2.61 crores, reflecting a sharp decline of 60.4% relative to the previous four-quarter average. Operating profit margins have also deteriorated, with the operating profit to interest coverage ratio falling to a low of 4.37 times, indicating reduced cushion to meet interest obligations.
Over the last five years, the company’s operating profit has contracted at an annualised rate of 21.34%, underscoring challenges in sustaining growth. This long-term decline in operating profitability has been a key factor in the stock’s weak performance and the recent downgrade in its Mojo Grade from Sell to Strong Sell on 20 Sep 2025, with a current Mojo Score of 29.0.
Valuation and Debt Metrics
Despite the subdued earnings and price performance, Nova Agritech maintains a relatively strong balance sheet. The company’s debt to EBITDA ratio stands at a low 1.22 times, indicating a manageable debt burden and a solid ability to service its liabilities. This is a positive aspect amid the broader challenges faced by the company.
Return on capital employed (ROCE) is reported at 14%, which is considered attractive within the sector. The enterprise value to capital employed ratio is 1.1, suggesting the stock is trading at a discount relative to its peers’ historical valuations. However, this valuation discount has not translated into positive price momentum given the company’s recent earnings contraction and market sentiment.
Over the past year, profits have declined by 38.3%, further reflecting the pressures on the company’s financial health and operational scale.
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Shareholding and Sector Position
Promoters remain the majority shareholders of Nova Agritech Ltd, maintaining control over the company’s strategic direction. The firm operates within the Fertilizers industry, a sector that has experienced volatility due to fluctuating input costs and regulatory changes.
While the broader market, represented by the Sensex, has shown resilience and modest gains, Nova Agritech’s stock has lagged significantly. The company’s underperformance relative to the BSE500 index over the last three years, one year, and three months highlights persistent challenges in both near-term and long-term growth trajectories.
Currently, the stock’s trading below all major moving averages signals a continuation of the prevailing downtrend, despite the slight recovery observed after the recent five-day decline.
Summary of Key Metrics
To summarise, Nova Agritech Ltd’s stock has reached a new 52-week low of Rs.28.36, reflecting a 45.05% decline over the past year. The company’s financial results reveal a contraction in net sales and profits, with operating profit shrinking at an annualised rate of 21.34% over five years. The stock’s Mojo Grade was downgraded to Strong Sell in September 2025, with a current Mojo Score of 29.0.
Despite a low debt to EBITDA ratio of 1.22 times and an attractive ROCE of 14%, the stock remains under pressure due to earnings declines and weak price momentum. The sector’s dynamics and the company’s relative underperformance compared to the Sensex and BSE500 indices further contextualise the stock’s recent price action.
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