IFB Agro Inds. (IFBAGRO)
TurnaroundFairStock Score: 43/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,029.3 |
| Market Cap | ₹964.16 Cr |
| P/E Ratio | 16.16 |
| ROCE | 6.75% |
| ROE | 9.13% |
| Dividend Yield | 0% |
| Profit Growth | 18.4% |
| Debt/Equity | 0.11 |
| Sales Growth | 35.8% |
| Promoter Holding | 65% |
| 52-Week Range | ₹679.15 — ₹1,790 |
| Sector | Beverages |
| Book Value | ₹718.79 |
Strengths
- Low leverage: Debt/Equity of 0.14 gives financial headroom in a regulated industry.
- High promoter holding of 65% aligns management with minority shareholders.
- Sales growth of 15.85% shows the top line is still expanding.
- Book value of ₹621.12 provides some asset support at 1.45 times book.
Concerns
- Profit growth is -30.48%, and latest quarter net margin is only ~2.3% (₹8 Cr on ₹342 Cr sales).
- ROE of 9.13% and ROCE of 6.75% are low for a stock trading above book value.
- Piotroski F-Score of 4/9 points to deteriorating operational and financial health.
- Zero dividend yield means shareholders receive no income while waiting for a recovery.
AI Analysis
At ₹899.30, IFB Agro has a market cap of ₹810 Cr and trades at 15.59 times earnings. Graham would remind me that a stock may look cheap, but the business is the ultimate fact. The book value is ₹621.12, so I am paying about 1.45 times book for a company that earns only 9.13% on equity and 6.75% on capital. That is not a wonderful business; it is a mediocre capital user. The low debt-to-equity ratio of 0.14 is comforting, and promoter holding at 65% is a positive. But a clean balance sheet must be supported by earnings power. Sales grew 15.85%, yet profit fell 30.48%, and the latest quarter's net profit of ₹8 Cr on sales of ₹342 Cr is a razor-thin margin of around 2.3%. This suggests the company is buying growth without pricing power or cost discipline. The Piotroski F-Score of 4/9 supports my caution: fundamentals are mixed, not strengthening. With a zero dividend yield, I get no cash return while I wait. The 52-week range of ₹679.15 to ₹1,790.00 highlights how volatile the stock has been; it has dropped from the high and is now mid-range. A PEG of 0.98 looks attractive only if you use sales growth, but earnings are declining, so I will not lean on that. At this price, the margin of safety is inadequate given the weak returns. I would wait for evidence that margins and ROCE are recovering before treating this as a classic Buffett-style purchase.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer