MRP Agro (543262)

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

Key Financials

Strengths

• ROCE of 39.18% suggests efficient use of capital
• Latest quarter net margin is around 14% (₹2 Cr profit on ₹14 Cr sales)
• P/E of 18.08 is not excessive for a profitable small-cap
• Stock is at its 52-week high, indicating some market confidence

Concerns

• Sales growth of -70.44% shows severe business contraction
• Profit growth of -48.45% and Piotroski F-Score of 3/9 signal weak financial health
• Zero dividend yield means no income while waiting for recovery
• Insufficient data: Book value, ROE, D/E, and promoter holding are unavailable

AI Analysis

Let me start with what I can see. MRP Agro is a small distributor with a market cap of ₹137 crore, trading at ₹137 – conveniently near its 52-week high of ₹137. But the reported numbers tell a more troubling story. Sales have collapsed by 70.44% and profits are down 48.45%. The latest quarter shows sales of only ₹14 crore and net profit of ₹2 crore. As Graham would say, you cannot base a sound decision on a few favorable quarters; here even the basic metrics are incomplete. Book value, ROE, debt/equity, and promoter holding are all missing. I cannot value a business without knowing its net worth, leverage, and who controls it. The one bright spot is ROCE of 39.18%, which suggests efficient use of capital employed, and the trailing P/E of 18.08 is not outrageous if earnings can stabilise. But a Piotroski F-Score of 3 out of 9 is a warning flag: this is a financially stressed or operationally weak profile, not the kind of resilient franchise I look for. There is no dividend, so I am not being paid to wait. Distributors generally lack pricing power and moats, and with sales falling 70%, this looks more like a turnaround hope than a proven compounder. I am reminded that price is what you pay, value is what you get. At ₹137, the market is paying a full price for a business in sharp decline and with inadequate disclosure. If the company can stabilise sales and show a sustained recovery, it may deserve another look. But for now, Mr. Market's optimism is not supported by the facts. I would keep it on the watch list, not in my portfolio.

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