IFB Agro Inds. (IFBAGRO)

FairStock Score: 43/100 — MIXED

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

Key Financials

AI Analysis

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

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.

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