Insecticid.India (INSECTICID)
CyclicalFairStock Score: 24/100 — RISKY
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹631.15 |
| Market Cap | ₹1,836.51 Cr |
| P/E Ratio | 13.18 |
| ROCE | 17.43% |
| ROE | 12.14% |
| Dividend Yield | 0.63% |
| Profit Growth | -27% |
| Debt/Equity | 0.13 |
| Sales Growth | -10.65% |
| Promoter Holding | 72.3% |
| 52-Week Range | ₹518.6 — ₹800.6 |
| Sector | Fertilizers & Agrochemicals |
| Book Value | ₹419.42 |
Strengths
- Low debt-to-equity of 0.20 provides financial resilience
- High promoter holding of 72.30% aligns management with shareholders
- ROCE of 17.43% indicates decent capital efficiency
- Sales growth of 7.61% shows the business is still expanding
Concerns
- Profit growth declined sharply by 39.61%, showing margin compression
- Latest quarterly net profit of ₹10 Cr on sales of ₹385 Cr reflects very thin margins
- Piotroski F-Score of 4/9 signals weak financial health
- Dividend yield of only 0.32% offers little protection to investors
AI Analysis
When I look at Insecticid India, I see a business that is financially conservative but not necessarily cheap. The company carries a debt-to-equity of only 0.20 and has a promoter holding of 72.30%, which tells me the owners are aligned with public shareholders. Book value is ₹387.94, so at ₹706.80 I am paying 1.82 times book for a return on equity of 12.14%. That is not a bargain in Graham's sense. The return on capital employed is better at 17.43%, which suggests the underlying operations have some efficiency. But my real concern is the earnings trend. Sales have grown 7.61%, yet profit has fallen 39.61%. The latest quarter shows sales of ₹385 Cr but net profit of only ₹10 Cr — a margin of roughly 2.6%. That is thin and fragile. A trailing P/E of 12.76 looks modest, but when earnings are falling, the trailing multiple can mislead you. The Piotroski score of 4/9 reinforces my caution. This looks like a cyclical agrochemical business facing margin pressure, not a stalwart with pricing power. The dividend yield of 0.32% is negligible for an investor seeking income. I would not rush to buy. I would wait for evidence that profit margins are stabilising or recovering. If the next few quarters show better conversion of sales into profits, the valuation could become interesting. Until then, this is a watchlist idea, not a committed investment.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer