Cropster Agro (523105)

FairStock Score: 15/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Return on equity of 15.39% and ROCE of 16.08% indicate acceptable capital efficiency.
• Piotroski F-Score of 7/9 suggests decent short-term financial health.
• Profit growth of 23.46% shows earnings momentum.
• Sales growth of 6.84% provides slow but positive top-line expansion.

Concerns

• Price-to-book of 232.56 with book value of just ₹1.54 implies extreme overvaluation.
• Reported P/E of 56.04 is already rich, but latest quarter net profit of ₹4 Cr implies a far higher multiple on annualised earnings.
• 52-week range of ₹4.86 to ₹358.15 points to speculative price action rather than stable value creation.
• No dividend and no disclosed promoter holding reduce transparency and income support.

AI Analysis

Let me start with what every investor must see: the price. Cropster Agro trades at ₹358.15, giving a market capitalisation of ₹31,662 crore. Yet the book value is just ₹1.54 per share. That means I am asked to pay 232 times book value. Graham would call this speculation, not investment. The reported P/E of 56.04 is already rich, but it is far worse when measured against the latest quarter: sales of ₹54 crore and net profit of only ₹4 crore. Even if that quarterly profit were annualised, the share would be trading at almost 2,000 times earnings. The numbers simply do not support the price. On the positive side, return on equity is 15.39% and ROCE is 16.08%, and the Piotroski F-score of 7/9 suggests decent short-term financial health. Profit growth of 23.46% is encouraging, although sales growth is only 6.84%, so profitability is outpacing revenue by a wide margin. The PEG ratio of 3.70 tells me the market has already priced in years of excellent growth. There is no dividend; the promoter holding is not disclosed; and the 52-week range from ₹4.86 to ₹358.15 is a red flag of extraordinary price movement, not evidence of durable value. In Buffett's language: a wonderful business at a fair price is good, but any business at a ridiculous price is bad. Here we have a moderate business at a speculative price. I cannot calculate a margin of safety when book value is ₹1.54 and earnings are tiny relative to market value. For a retail investor, this is a stock to watch from a distance, not to own. I would wait for price to collapse to a level where the price-to-earnings and price-to-book ratios reflect reality.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer