Aries Agro (ARIES)

FairStock Score: 60/100 — STEADY

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

Key Financials

Strengths

• Low leverage with debt-to-equity of only 0.21
• Strong profitability metrics: ROCE 18.38% and ROE 13.93%
• Robust growth: sales up 18.87% and profit up 48.88%
• Attractive valuation: P/E 9.79 and PEG 0.29
• Piotroski F-Score of 7/9 indicates healthy financial condition

Concerns

• Fertilizer business is cyclical and exposed to monsoon and government policy
• No clear economic moat in a commoditized industry
• Low dividend yield of 0.37% limits income support
• FairStock Score unavailable, so external validation is insufficient

AI Analysis

At ₹375, Aries Agro has a market cap of ₹427 Cr and trades at 9.79 times earnings. Book value is ₹205.60, so I am paying 1.82 times book. Not a deep value net-net, but the earnings yield is attractive if quality holds. I like the balance sheet: debt-to-equity is only 0.21, ROCE is 18.38%, and ROE is 13.93%. Piotroski score of 7/9 suggests sound fundamentals. Sales grew 18.87% and profit grew 48.88%. The latest quarter had ₹203 Cr sales and ₹17 Cr net profit, showing momentum. With a PEG ratio of 0.29, the market is pricing in little future growth. But fertilizer remains a cyclical commodity business. It depends on monsoons, global input costs, and government policy. I do not see a powerful moat. Dividend yield is just 0.37%, so returns must come from growth. Also, the FairStock score is unavailable, which limits my informational margin of safety. Graham would focus on the low debt and the reasonable multiple. Buffett would ask whether the business can compound for decades, and in fertilizers that is less certain. If management maintains ROCE near 18% and keeps leverage low, this cheap growth is interesting. I would watch quarterly earnings consistency, subsidy policy, and working capital. For now, the numbers describe a fast grower at a reasonable price, but not a wonderfully predictable business.

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