Freshara Agro (FRESHARA)

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

Key Financials

Strengths

• Revenue and profit growth of ~30% with a P/E of 14 gives a PEG of 0.46, suggesting the growth is not fully priced.
• ROCE of 24.76% indicates strong capital efficiency.
• Piotroski F-Score of 7/9 points to solid operational and financial health.
• Latest quarter net margin of about 11% (₹15 Cr profit on ₹134 Cr sales) is respectable.
• Promoter holding of 62.58% aligns promoter interests with minority shareholders.

Concerns

• No book value, ROE, or debt/equity data makes the balance sheet risk difficult to assess.
• Zero dividend means investors depend entirely on future growth and capital gains.
• Stock has fallen about 44% from its 52-week high of ₹388.75, signaling possible market doubts.
• Food products is a competitive, low-moat industry where high growth may attract intense competition.

AI Analysis

When I evaluate Freshara Agro, I first put aside the 52-week range—down from 388.75 to 215.95—because Mr. Market often overreacts. What matters to me is what the business earns and how reliably it can grow. At ₹215.95, the market cap is ₹454 Cr and the trailing P/E is 14.03. That means I am paying about fourteen times earnings for a company that has grown sales at 29.64% and profits at 31.02%. A PEG of 0.46 is genuinely attractive—if that growth is durable. In Graham's terms, the current price offers some margin of safety, but only if the business quality holds up. The financial health signals are mostly encouraging. ROCE is 24.76%, showing management uses capital efficiently. The Piotroski F-Score of 7/9 is a strong positive; it suggests improving fundamentals and not just a cheap-looking income statement. The latest quarter, with sales of ₹134 Cr and net profit of ₹15 Cr, gives a net margin of about 11%, which is respectable for a food products business. Promoter holding of 62.58% also aligns owners with minority shareholders. However, I am uncomfortable with missing data. There is no book value, no debt-to-equity ratio, and no return-on-equity figure. I cannot fully assess the balance sheet or leverage risk. That is a red flag for a disciplined investor. The zero dividend is acceptable only if retained earnings keep earning 25%-style returns; that remains to be proven. Also, food processing is a competitive, low-moat industry. A 44% fall from the high tells me the market has doubts, and I need to know why. I would call this a fast grower trading at a reasonable price, but the absence of key balance-sheet details prevents me from making a full commitment. I'd wait for more disclosure, and then, if the growth proves durable, it deserves a place in a patient portfolio.

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