Agribio Spirits (539546)

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

Key Financials

Strengths

• Price to book is near 1.02, with book value at ₹44.11 offering tangible asset support if the stated assets are reliable.
• Latest quarter shows ₹1 Cr net profit on ₹8 Cr sales, implying an operating margin of roughly 12.5%.
• ROCE of 7.17% is positive, indicating the existing capital base is generating some return, albeit modest.
• Small market cap of ₹45 Cr makes it a neglected micro-cap that could be mispriced if assets are worth book value.

Concerns

• P/E of 82.37 shows earnings are tiny relative to price, so the valuation is not cheap on a profit basis.
• Sales growth of -0.25% and profit growth of -5.98% indicate a stagnant or shrinking business.
• Piotroski F-score of 3/9 signals weak financial health and a possible deteriorating balance sheet.
• Price of ₹45.02 sits far below the stated 52-week range of ₹188.15-₹314.00, an unexplained red flag.
• Promoter holding is not disclosed, and dividend yield is only 0.09%, giving shareholders little evidence of alignment or income.

AI Analysis

At ₹45.02, Agribio Spirits is selling almost exactly at its book value of ₹44.11. That sounds like a Graham-style asset play: you pay ₹1 for ₹1 of stated equity. But my rule is a fair price for a wonderful business, not any business at book. Here, the business earns a paltry 2.73% return on equity and 7.17% on capital employed. A savings account that yields more carries less risk. The market capitalises this weak earning power at a P/E of 82.37 — that is not a bargain multiple; it simply reflects tiny profits against the asset base. Sales growth is -0.25%, profit growth -5.98%, and the Piotroski F-score of 3/9 tells me the financial health is deteriorating or, at best, not improving. The latest quarter earned ₹1 Cr on ₹8 Cr of sales, a decent margin in isolation, but one quarter cannot overcome a weak trend. I cannot call this a great franchise. There is no evidence of pricing power, brand strength, or volume growth. A dividend yield of 0.09% means patient shareholders get no income while waiting. More troubling: the quoted price is far below the stated 52-week range of ₹188.15 to ₹314.00. That inconsistency demands a reason — a corporate action, restructuring, or data error. Without understanding that, any margin of safety is an illusion. Promoter holding is not disclosed, so I cannot judge insider alignment. With a Piotroski score of 3, I would prefer to wait. Book value provides a floor only if assets are honestly valued and earnings recover. At this price, you are not being paid to take risk; you are being asked to pay full asset value for subpar returns. That is not a margin of safety — it is a hint to move on.

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