Teesta Agro Ind. (524204)

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

Key Financials

Strengths

• Trading at only 0.48 times book value; price ₹98.65 vs book value ₹205.56.
• Low P/E of 7.07 and PEG of 0.15 suggest cheap valuation relative to recent growth.
• Piotroski F-Score of 7/9 indicates decent financial health.
• Strong recent momentum: sales growth 38.41% and profit growth 56.91%.
• Latest quarter profitable with sales of ₹90 Cr and net profit of ₹3 Cr.

Concerns

• ROE and ROCE are only 7.87% and 7.97%, showing mediocre returns on capital.
• No dividend paid—zero income yield for shareholders.
• Very small market cap of ₹58 Cr, implying possible liquidity and volatility risks.
• Thin net margin around 3.3%; fertilizer business is cyclical and policy-sensitive.

AI Analysis

At 98.65 rupees, Teesta Agro offers a classic Graham-style margin of safety: the market prices it at only 0.48 times book value of 205.56 rupees, and the trailing P/E is 7.07. I like buying assets for less than they appear to be worth. The recent numbers look encouraging—sales up 38.41%, profit up 56.91%, and a Piotroski score of 7 out of 9 suggests the company is not financially stressed. A PEG of 0.15, if growth can be sustained, screams cheap. But I must be honest: a low multiple is not the same as a good business. ROE is 7.87% and ROCE is 7.97%, below what I would demand from a quality compounder. The latest quarter shows sales of 90 crore and net profit of only 3 crore, meaning net margins are razor thin—roughly 3.3%. Fertilizer is a commoditised, policy-driven industry; pricing power is limited and the cycle can turn quickly. The stock is trading near the bottom of its 52-week range, which tells me the market is not rewarding this growth with a higher multiple. There is no dividend, so minority shareholders depend entirely on management's capital allocation. With a market cap of only 58 crore, this is a very small ship; liquidity and governance need careful scrutiny. Debt/equity is not provided, and promoter holding is unknown—both key blind spots. I would not call this a wide-moat stalwart. It is an asset play with cyclical recovery potential. I would buy only if I believed book value is real, margins have bottomed, and management can improve returns on capital. For now, it is a 'sit on my hands' opportunity until more evidence appears.

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