TGIF Agribusines (544175)

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

Key Financials

Strengths

• Return on capital employed of 27.56% is strong, suggesting efficient use of capital.
• P/E of 11.96 is reasonable for the current earnings level.
• Profit growth of 9.28% despite lower sales indicates improving margins or cost control.
• Piotroski F-Score of 6/9 points to moderately healthy financials.

Concerns

• Sales declined 7.49%, indicating shrinking top-line demand.
• Micro-cap with ₹24 crore market cap and no dividend is highly speculative.
• Critical data missing: book value, debt/equity, and promoter holding.
• Latest quarter net profit of ₹1 crore on ₹2 crore sales implies an unusually high margin that may not be sustainable.

AI Analysis

At first glance, TGIF Agribusines is the kind of micro-cap that demands extra caution. With a market cap of just ₹24 crore, I cannot pretend this is a large, durable enterprise. The agricultural products business is understandable, but the lack of promoter holding, book value, and debt data means I am flying partly blind. The numbers I do have are mixed: return on capital employed is excellent at 27.56%, and the P/E of 11.96 is not demanding. Yet sales have fallen 7.49%, while profits rose 9.28%. That discrepancy makes me suspect margin improvement or cost cutting rather than underlying demand growth. In the latest quarter, sales were only ₹2 crore with net profit of ₹1 crore—a very high margin, and I would want to see multiple quarters before believing it is sustainable. The Piotroski score of 6/9 is decent, suggesting the balance sheet is not deteriorating badly, but insufficient data prevents a proper Graham check. Valuation-wise, a PEG of 1.29 is acceptable only if 9% profit growth continues; given declining sales, I have little faith in that extrapolation. This looks like a possible turnaround rather than a compounding machine. There is no dividend to compensate while waiting, and the 52-week range of ₹66.50 to ₹102.00 shows speculative volatility. As Graham would say, price is what you pay, value is what you get. At ₹91.48, I am not convinced there is enough margin of safety for a micro-cap in a commoditised agricultural segment. I would wait for more transparency and evidence that top-line growth has returned.

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