Advance Agrolife (ADVANCE)

FairStock Score: 45/100 — MIXED

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At ₹114.33, Advance Agrolife has a market cap of ₹783 crore, a P/E of 26.77 and a P/B of 2.80 against book value of ₹40.80. That is not a Graham-style bargain. I do appreciate the 69.89% promoter holding — owners have skin in the game. A ROCE of 28% is respectable, and debt/equity of 0.47 is manageable. The Piotroski score of 7/9 also suggests the financial fabric isn't torn. But my investment test is simple: earnings per share must grow at a reasonable rate, and I must not overpay. Here sales grew 17.20%, yet profit grew only 8.27%. The latest quarter amplifies my worry: ₹133 crore of sales produced only ₹3 crore of net profit, a margin below 2.5%. The PEG ratio of 2.10 tells me I'm paying more than twice the growth rate. With no dividend yield, my entire return depends on price appreciation, and high valuations compress that possibility. Paying 2.80 times book requires confidence in the durability of the franchise. In agrochemicals, pricing power and product differentiation matter, but the figures don't reveal a wide moat. If profit growth doesn't catch up to sales growth, this stock will disappoint. I'd need a margin of safety — either a materially lower price or clear evidence that quarterly profitability is stabilizing at a higher level. Until then, I'd watch from the sidelines.

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