Godrej Agrovet (GODREJAGRO)

FairStock Score: 58/100 — STEADY

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Godrej Agrovet as a Graham-style buyer first: what am I paying, and what do I get? At ₹580.50 and ₹11,167 Cr market cap, the market values this animal feed business at 25x earnings and 5.49x book. The returns are respectable—ROE 18.43%, ROCE 16.59%, Piotroski F-Score 8/9, Altman Z-Score 4.11—so this is not a fragile enterprise. It generates ₹887 Cr FCF, pays a 1.89% dividend, and promoters own 67.65%, aligning interests. Latest quarter sales were ₹2,718 Cr and net profit ₹110 Cr, and sales growth is 12.41%, so demand looks steady. But Graham's arithmetic warns me: the Graham Number is ₹252.11, meaning I'm paying about 2.3x that conservative value, with a margin of safety of -153.95%. P/E 25 and P/B 5.49 already bake in much. The DCF intrinsic value of ₹2,168.85 seems to say the opposite, but EV/EBITDA 134.70 is so extreme that I would not treat the valuation picture as simple. Growth is also not thrilling: 5-year revenue CAGR 6.14% and profit growth 8.71%, so this looks more like a steady stalwart than a fast grower. Debt/equity 0.73 is manageable but not pristine. My conclusion: a decent, well-run agri-linked compounder with a moat suggested by its ROE/ROCE and steady sales, but at this price the margin of safety is absent. I'd want a lower price or clearer earnings acceleration before buying. FairStock 58/100 STEADY fits: watch, don't chase.

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