Galaxy Agrico (531911)

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

Key Financials

Strengths

• Reported book value of ₹15.57 per share provides some tangible asset backing.
• Latest quarter net profit of ₹5 Cr is positive, though likely exceptional or non-operating.
• Sales growth of 1.35%, while weak, at least shows the topline is not collapsing.
• Positive net worth exists, so the company is not balance-sheet insolvent.

Concerns

• P/E of 0.00 and profit growth of -400% indicate no genuine recurring earnings power.
• ROCE of -1.89% and Piotroski F-Score of 3/9 show weak capital efficiency and fundamental health.
• At ₹51.50, the stock trades at 3.31 times book value of ₹15.57, leaving no valuation cushion.
• Latest quarter net profit of ₹5 Cr on sales of ₹1 Cr is highly unusual and suggests non-operating gains rather than sustainable business performance.

AI Analysis

In Benjamin Graham's world, a stock is not a ticker; it is a business. Look at Galaxy Agrico: market cap ₹16 crore, price ₹51.50, but earnings support is absent. P/E 0.00, profit growth -400%, ROCE -1.89%. A business earning negative return on capital is not compounding value; it is destroying it. The 116% ROE may look eye-catching, but it is a small-equity mirage when operating return is negative—likely boosted by one-off or non-operating items, not by durable operations. Latest quarter sales ₹1 crore and net profit ₹5 crore should be a red flag: a 500% profit margin is not sustainable from operations. Annualize that ₹1 crore quarterly sale, and you get roughly ₹4 crore revenue against a ₹16 crore market cap—about 4 times sales for a no-moat industrial products company with just 1.35% sales growth. Book value is ₹15.57, yet I am asked to pay ₹51.50, or 3.31 times book. Where is the margin of safety? There is none. The Piotroski score is 3/9, signalling weak fundamental health. There is no dividend, no promoter holding disclosure, and zero earnings yield. Graham would say: avoid until the numbers tell a story of genuine, repeatable earnings. Value investing requires patience and buying with a cushion. Here, the cushion is thin and the cracks are visible. Unless this is a confirmed turnaround with exceptional items explained, this is a pass.

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