Nova Agritech Ltd Stock Hits All-Time Low Amidst Continued Downtrend

Stock Performance Overview

On 26 Feb 2026, Nova Agritech’s stock price touched Rs.28.31, the lowest level ever recorded for the company. Despite a marginal outperformance relative to its sector by 1.76% on the day, the stock closed with a slight dip of 0.03%, underperforming the Sensex which gained 0.06% in the same session. The stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum.

Examining the recent performance, the stock has declined by 1.69% over the past week, compared to a 0.21% fall in the Sensex. The monthly performance shows a sharper drop of 11.21%, while the Sensex gained 0.97%. Over three months, the stock plunged 31.72%, significantly underperforming the Sensex’s 3.83% decline. The one-year performance is particularly stark, with Nova Agritech’s shares down 41.73%, contrasting with a 10.36% gain in the Sensex. Year-to-date, the stock has lost 22.96%, while the benchmark index fell 3.39%.

Financial Metrics and Profitability

Nova Agritech’s financial results have mirrored its share price weakness. The company reported a 27.97% decline in net sales, culminating in very negative results declared in December 2025. The latest six-month profit after tax (PAT) stood at Rs.9.37 crores, reflecting a contraction of 45.93%. Quarterly net sales of Rs.66.55 crores fell by 13.8% compared to the previous four-quarter average, underscoring a weakening revenue base.

Operating profit growth has been negative over the long term, shrinking at an annual rate of 21.34% over the past five years. The operating profit to interest coverage ratio for the latest quarter is at a low 4.37 times, indicating tighter margins for servicing debt obligations despite the company’s relatively low leverage.

Long-Term and Sector Comparison

Over a three-year and five-year horizon, Nova Agritech’s stock has delivered no returns, standing at 0.00%, while the Sensex has appreciated by 38.45% and 67.68% respectively. Over a decade, the divergence is even more pronounced, with the Sensex rising 255.57%. This underperformance extends to the BSE500 index and peers within the fertilisers sector, where Nova Agritech has lagged consistently in both short and long-term periods.

The company’s Mojo Score currently stands at 29.0, with a Mojo Grade of Strong Sell, upgraded from Sell on 20 Sep 2025. The Market Cap Grade is 4, reflecting a relatively modest market capitalisation within its sector. These ratings highlight the subdued market sentiment and the challenges faced by the company in reversing its fortunes.

Debt and Valuation Metrics

Despite the financial pressures, Nova Agritech maintains a low Debt to EBITDA ratio of 1.22 times, indicating a manageable debt burden relative to earnings before interest, tax, depreciation, and amortisation. The company’s return on capital employed (ROCE) is reported at 14%, which is considered attractive within the fertilisers industry. Furthermore, the enterprise value to capital employed ratio stands at 1.2, suggesting the stock is trading at a discount compared to historical valuations of its peers.

However, the profitability decline remains a concern, with profits falling by 38.3% over the past year, closely aligned with the steep share price depreciation. The majority shareholding remains with promoters, maintaining control over strategic decisions.

Summary of Current Situation

Nova Agritech Ltd’s stock reaching an all-time low of Rs.28.31 is a reflection of sustained financial contraction and market underperformance. The company’s declining sales, shrinking profits, and negative operating profit growth over the last five years have contributed to this position. While the firm retains a relatively low debt level and attractive valuation metrics, these factors have not translated into positive share price momentum or improved returns for shareholders.

The stock’s performance relative to the Sensex and sector peers underscores the challenges faced by Nova Agritech in maintaining competitiveness and growth. The downgrade to a Strong Sell grade by MarketsMOJO further emphasises the cautious stance adopted by market analysts based on current data.

Investors and market participants will continue to monitor the company’s financial disclosures and market movements closely as the stock remains at historically low levels.

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