Agarwal Indl. (AGARIND)
CyclicalFairStock Score: 17/100 — RISKY
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹484.75 |
| Market Cap | ₹725.08 Cr |
| P/E Ratio | 16.64 |
| ROCE | 16.9% |
| ROE | 10.76% |
| Dividend Yield | 0.68% |
| Profit Growth | -20.6% |
| Debt/Equity | 0.5 |
| Sales Growth | -26.5% |
| Promoter Holding | 57.2% |
| 52-Week Range | ₹360.05 — ₹1,006 |
| Sector | Chemicals & Petrochemicals |
| Book Value | ₹460.71 |
Strengths
- Promoter holding of 57.2% aligns owner interests with minority shareholders.
- ROCE of 16.90% shows adequate capital efficiency even in a difficult year.
- Debt/Equity of 0.63 is moderate and not excessively leveraged.
- Stock has corrected sharply from its 52-week high of ₹1006, reducing some speculative froth.
Concerns
- Sales declined 24.66% and profit collapsed 89.89%, with latest quarterly net profit of just ₹3 Cr.
- Piotroski F-Score of 3/9 and FairStock Score of 17/100 signal weak financial health.
- Trailing P/E of 14.12 is misleading because it is based on rapidly eroding earnings; future P/E could be far higher.
- Dividend yield of 0.60% offers little support to investors during the downturn.
AI Analysis
In Graham's language, this is a business I would have to watch, not embrace. Agarwal Indl. is a petrochemical producer, and the numbers scream cyclical stress, not franchise quality. Sales fell 24.66% and profit collapsed 89.89%; the latest quarter earned just ₹3 Cr on sales of ₹408 Cr. The trailing P/E of 14.12 looks seductively cheap, but that arithmetic rests on an earnings level that is clearly eroding. With a Piotroski F-score of 3/9 and a FairStock score of 17/100, the financial health is weak. Book value is ₹246.26 per share, yet the stock trades at ₹450.50 — 1.83 times book. For a business with falling profits and no pricing power in a commodity industry, I demand a substantial discount to intrinsic value, not a premium to book. There are some positives: promoter holding is a healthy 57.2%, so owners' interests are aligned; ROCE of 16.9% is respectable; and Debt/Equity of 0.63, while not conservative, is not alarming. ROE of 10.76% is ordinary. The 52-week range of ₹360 to ₹1006 shows how violent the cycle can be — this is a cyclical business, not a stable compounder. Buffett would say it is far better to buy a wonderful company at a fair price. This is a mediocre business at a price that only looks cheap if the old earnings return. Until I see quarterly sales and margins stabilise, and profit recover from ₹3 Cr, there is no margin of safety. I would put it on the watchlist, not in the portfolio.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer