Advance Agrolife (ADVANCE)
Slow GrowerFairStock Score: 45/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹118.79 |
| Market Cap | ₹763.65 Cr |
| P/E Ratio | 15.63 |
| ROCE | 28% |
| ROE | —% |
| Dividend Yield | 0% |
| Profit Growth | 75.9% |
| Debt/Equity | 0.32 |
| Sales Growth | 96% |
| Promoter Holding | 69.89% |
| 52-Week Range | ₹84.1 — ₹154 |
| Sector | Fertilizers & Agrochemicals |
| Book Value | ₹43.62 |
Strengths
- Promoter holding at 69.89% aligns interests with minority shareholders.
- ROCE of 28% indicates strong return on capital employed.
- Sales growth of 17.20% shows healthy top-line momentum.
- Piotroski F-Score of 7/9 suggests decent financial health.
- Debt/equity of 0.47 keeps leverage moderate.
Concerns
- P/E of 26.77 is expensive against profit growth of 8.27%; PEG ratio is 2.10.
- Latest quarter net profit of ₹3 Cr on sales of ₹133 Cr implies a very thin margin.
- No dividend yield means no income cushion for shareholders.
- Profit growth trailing sales growth by about 9 percentage points suggests margin pressure.
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer