Crop Life Scienc (CLSL)

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

Key Financials

Strengths

• Promoter holding of 70.01% shows strong alignment with minority shareholders.
• Sales growth of 13.11% indicates demand for agrochemical products is expanding.
• P/E of 13.29 and PEG of 1.01 are not demanding if earnings growth stabilizes.
• ROCE of 12.06% suggests capital is being deployed to generate acceptable returns.
• Latest quarter is profitable: ₹3 Cr net profit on ₹120 Cr sales.

Concerns

• Profit growth is down 12.50%, and latest net margin is only ~2.5%, leaving very little room for shocks.
• Piotroski F-Score of 4/9 points to weak/fragile financial health.
• No dividend declared, so investor receives no income while waiting for a turnaround.
• Key financials such as book value, ROE, and debt/equity are unavailable, making a Graham-style margin of safety impossible to verify.

AI Analysis

Let me start with what I know. At ₹46, Crop Life Scienc has a market cap of ₹82 Cr and a P/E of 13.29. That looks reasonable, but Graham warned never to treat a low multiple as a bargain. Profit growth is negative at -12.50%, and the latest quarter earned only ₹3 Cr on ₹120 Cr sales—a net margin near 2.5%. A business operating on such thin margins has little room for error. The promoter stake of 70.01% is encouraging: the people running it have skin in the game. Sales growth of 13.11% also shows demand for pesticides and agrochemicals exists. But when sales rise and profits fall, I ask why. Price pressure? Rising costs? A bad product mix? The Piotroski F-score of 4/9 reinforces my caution; the underlying fundamentals are weak. I also note the missing pieces. No book value, no ROE, no debt-equity ratio. Graham insisted on a balance sheet before investing. Without it, I cannot measure downside. ROCE of 12.06% is acceptable but not impressive. There is no dividend, so I earn nothing while waiting. The stock trades much closer to its 52-week low of ₹39.05 than its high of ₹78.15, which can signal disappointment as much as opportunity. This looks like a cyclical agrochemical player in a compressed margin phase. It is not a fast grower or stalwart. The PEG of 1.01 would matter only if earnings growth resumes; recent reported profit decline makes me skeptical. I would wait for margin stability, better F-score, and clearer balance-sheet disclosures. If profitability recovers and the quality is confirmed, this could become interesting. For now, it is a watchlist candidate, not a buy.

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