Bhaskar Agrochem (524534)

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

Key Financials

Strengths

• PEG of 0.28 (P/E 10.06 vs 49.72% profit growth) suggests the market is underpricing near-term growth.
• ROE of 40.40% and ROCE of 21.26% indicate efficient use of capital, if sustainable.
• Sales growth of 22.18% shows the business is expanding in a competitive agrochemical environment.
• Piotroski F-Score of 7/9 points to generally sound financial health and improving fundamentals.
• Absolute P/E of 10.06 is not expensive for a profitable small-cap.

Concerns

• Current price ₹74.05 is below the stated 52-week range of ₹92.00-₹199.90; data inconsistency or illiquidity is a red flag.
• Debt/Equity and promoter holding are not disclosed, so leverage, ownership, and governance cannot be assessed.
• Book value of ₹28.28 means the buyer pays 2.62 times book; there is little margin of safety on assets.
• High ROE and profit growth may be cyclical rather than durable; agrochemicals are exposed to weather, regulation, and competition.

AI Analysis

At first glance, Bhaskar Agrochem looks like the sort of stock Graham would ask me to study: a ₹39 Cr market cap, a P/E of 10.06, and 49.72% profit growth giving a PEG of only 0.28. A 22.18% sales increase suggests the company is selling more, and a 40.40% ROE with 21.26% ROCE implies the business earns good returns on both shareholder funds and capital employed. The Piotroski score of 7/9 adds to the optimistic picture. But I must stop and check the arithmetic. The price is ₹74.05, yet the stated 52-week range is ₹92.00 to ₹199.90. That is impossible for a normal listed stock; it tells me the data may be stale, there may have been a corporate action, or the market is deeply uncertain about this tiny company. Book value is only ₹28.28, so at ₹74.05 I am paying 2.62 times book. A P/E of 10.06 implies earnings of around ₹3.9 Cr, but an ROE of 40.40% on the same book value implies much higher earnings. These numbers do not foot. Benjamin Graham taught me that when the figures contradict each other, the prudent answer is 'I don't know.' I also have no debt/equity ratio and no promoter holding, so I cannot judge leverage or management trust. The agrochemical business is competitive and weather-dependent; a high ROE in one favourable cycle is not necessarily a moat. This looks like an interesting fast grower on the surface, but only if I can verify the balance sheet, governance, and the reason for the price collapse. Until then, it belongs on my watch list, not in my portfolio.

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