JK Agri Genetics (536493)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹448.45 |
| Market Cap | ₹209.25 Cr |
| P/E Ratio | 104.68 |
| ROCE | -7.09% |
| ROE | 0.55% |
| Dividend Yield | 0% |
| Profit Growth | 42.07% |
| Debt/Equity | — |
| Sales Growth | -9.12% |
| 52-Week Range | ₹282 — ₹569.85 |
| Sector | Agricultural Food & other Products |
| Book Value | ₹230.61 |
Strengths
- Book value of ₹230.61 per share provides some asset backing; P/B of 1.94 is not extreme.
- Piotroski F-Score of 5/9 suggests the balance sheet is not in immediate distress.
- Niche positioning in agri-genetics offers potential recovery value if industry conditions improve.
- Reported profit growth of 42.07% shows some earnings improvement, albeit from a weak base.
Concerns
- ROE of 0.55% and ROCE of -7.09% reflect very poor capital efficiency.
- Sales declined 9.12%, and the latest quarter posted a net loss of ₹5 crore on ₹24 crore sales.
- P/E of 104.68 with zero dividend yield leaves no margin of safety.
- PEG of 2.49 indicates the earnings growth does not justify the valuation.
AI Analysis
Look, I have little interest in buying businesses at 100 times earnings unless they possess extraordinary economics. JK Agri Genetics does not. With a market cap of ₹209 crore and a price of ₹448.45, the market is valuing this agricultural inputs player as if it is on the verge of something promising. The numbers tell me otherwise. Sales have fallen by 9.12%; the latest quarter shows ₹24 crore in sales and a net loss of ₹5 crore. ROE is a measly 0.55%, and ROCE is -7.09%. In other words, every rupee retained produces almost nothing, and the operating business does not earn its cost of capital. The 42% profit growth cannot impress me when the base is weak and the latest quarter loses money. Having no dividend means shareholders receive no tangible return while waiting. Book value of ₹230.61 provides some cushion, but buying at 1.94 times book with such poor returns leaves no margin of safety. Graham would say this price is built on hope, not arithmetic. Perhaps there is underlying value in the agri-genetics niche if management can fix operations, but I need evidence. The Piotroski score of 5 suggests moderate financial health, but it does not compensate for negative returns on capital. This is a speculative turnaround, not an investment. I would need to see sales stabilise, operating margins turn positive, and ROCE climb above zero for several quarters. Until then, the prudent course is to watch from the sidelines.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer