Market Performance and Price Trends
On 12 Jan 2026, Nova Agritech’s stock price fell by 2.66%, markedly underperforming the Sensex’s 0.50% decline on the same day. Over the past week, the stock has declined by 5.35%, compared to the Sensex’s 2.67% drop. The one-month performance shows a sharper fall of 7.29%, while the three-month figure reveals a steep 20.83% decrease, contrasting with the Sensex’s modest 0.80% gain over the same period.
Year-to-date, the stock has lost 3.99%, slightly worse than the Sensex’s 2.42% decline. The most striking figure is the one-year performance, where Nova Agritech has delivered a negative return of 40.98%, while the Sensex has appreciated by 7.47%. Over longer horizons, the stock has shown no growth over three, five, and ten years, whereas the Sensex has surged by 38.70%, 67.94%, and 236.93% respectively.
Technical indicators further highlight the bearish trend, with the stock trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling persistent downward momentum.
Financial Metrics and Operational Overview
Nova Agritech’s financial health presents a mixed picture. The company maintains a relatively low Debt to EBITDA ratio of 1.22 times, indicating a manageable debt burden and a strong capacity to service liabilities. Its Return on Capital Employed (ROCE) stands at 14%, which is considered a positive indicator of capital efficiency within the fertilisers sector.
Valuation metrics suggest an attractive entry point, with an Enterprise Value to Capital Employed ratio of 1.4, reflecting a potentially undervalued status relative to its capital base. However, these positives are overshadowed by the company’s declining profitability and cash flow generation.
Operating cash flow for the fiscal year ended September 2025 was reported at a negative Rs 18.43 crores, marking the lowest level in recent years. This negative cash flow position raises concerns about the company’s ability to fund its operations internally without external financing.
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Profitability and Growth Trends
Over the last five years, Nova Agritech’s operating profit has declined at an annualised rate of 3.89%, reflecting subdued growth in core earnings. The company’s profits fell by 8.9% over the past year, aligning with the sharp drop in share price. The flat results reported in September 2025 further underscore the absence of meaningful earnings expansion.
When benchmarked against the BSE500 index, Nova Agritech has underperformed consistently over the last three years, one year, and three months, indicating relative weakness within the broader market context.
Shareholding and Market Sentiment
The majority shareholding remains with the promoters, suggesting concentrated ownership. Despite this, the stock’s Mojo Score stands at 40.0 with a Mojo Grade of Sell, a slight improvement from the previous Strong Sell rating assigned on 20 Sep 2025. The Market Cap Grade is rated at 4, reflecting a relatively modest market capitalisation within its sector.
Sector-wise, Nova Agritech operates within the fertilisers industry, which has seen mixed performance in recent months. The stock’s underperformance relative to its sector by 1.52% on the latest trading day adds to the narrative of ongoing challenges.
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Summary of Key Indicators
To summarise, Nova Agritech Ltd’s stock has reached historic lows amid a backdrop of declining profitability, negative cash flows, and sustained underperformance relative to market benchmarks. While the company maintains a manageable debt profile and attractive valuation metrics, these have not translated into positive returns or growth over recent years.
The stock’s current Mojo Grade of Sell, following a recent upgrade from Strong Sell, reflects cautious market sentiment. The company’s financial metrics, including a low Debt to EBITDA ratio of 1.22 times and a ROCE of 14%, indicate operational stability but have not been sufficient to arrest the downward trend in share price and earnings.
Investors and market participants will note the stark contrast between Nova Agritech’s stagnant long-term returns and the robust gains recorded by the Sensex over comparable periods, highlighting the stock’s relative underperformance within the Indian equity landscape.
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