⚡ Flash Summary

Data Agro Limited reported a challenging year ending June 30, 2025, with a net loss of Rs. 24.695 million compared to a profit of Rs. 7.488 million in the previous year. Sales decreased slightly from Rs. 362.312 million to Rs. 353.207 million. The company faced issues such as declining wheat prices and delayed rains, which negatively impacted corn seed purchases by farmers. Management has decided not to declare a cash dividend given the current financial circumstances, focusing on reinvestment for future growth and sustainable operations.

📌 Key Takeaways

• 📉 Net loss of Rs. 24.695 million in 2025 compared to a profit of Rs. 7.488 million in 2024.
• Sales decreased by 2.5% from Rs. 362.312 million to Rs. 353.207 million.
• 🌾 Seeds processing/delinting decreased from 3,774 Metric Tons to 1,855 Metric Tons.
• 🌽 Declining wheat prices and delayed rains negatively impacted corn seed sales.
• 🏦 Borrowing costs remained high, affecting profitability.
• 💰 No cash dividend was declared for the year.
• 🧪 Continued investment in R&D for hybrid corn and other seeds.
• 🌾 Wheat prices dropped from Rs. 3900 to Rs. 2400 per maund.
• 🌱 Hybrid corn seeds 3377 and D 4147 performed well operationally.
• 🇦🇺 Trials of imported Australian seeds are underway.
• 🌱 Company plans to invest in cotton and wheat varieties.
• 🥦 Vegetable seeds market is being explored for future expansion.

🎯 Investment Thesis

Given the net loss, declining sales, and operational challenges, a SELL recommendation is warranted. The company’s high debt levels and exposure to volatile agricultural markets create significant downside risk. While management is focused on future growth through R&D and market expansion, the near-term outlook is uncertain. I estimate an intrinsic value of Rs. 20-25 per share.