KRBL (KRBL)

FairStock Score: 50/100 — MIXED

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

Key Financials

Strengths

• Negligible leverage (D/E 0.01) gives strong balance-sheet resilience.
• High promoter holding of 60.17% aligns management with minority shareholders.
• Reasonable valuation: P/E 12.02, P/B 1.65, and PEG 0.43.
• Profit growth of 28.17% and latest-quarter net profit of ₹170 Cr indicate margin strength.
• Piotroski F-Score of 6/9 suggests improving fundamentals, not deterioration.

Concerns

• Sales growth is negative at -12.19%, signalling clear top-line weakness.
• Moderate returns on capital (ROCE 11.84%) imply limited competitive moat.
• Dividend yield is only 1.03%, so income-seeking investors get little while waiting.
• Profit growth may be cost-driven or cyclical rather than durable, especially with revenue declining.

AI Analysis

Looking at KRBL, I see a business I would call decent but not wonderful. The market cap is ₹7,774 Cr, and at ₹366.30 it trades at a P/E of 12.02, which looks cheap. But cheap is only interesting if earnings are dependable. Profit growth of 28.17% catches my eye, yet sales fell 12.19%. In my experience, that divergence is often the signature of a cyclical or cost-driven bounce, not a franchise growing stronger. I cannot assume a wide moat from these numbers: ROCE is 11.84%, not the kind of return on capital that signals enduring pricing power. ROE of 13.07% is respectable, but not exceptional. The financial health is excellent—debt-to-equity of 0.01 means this company can sleep easily even in a bad agricultural season. Promoter holding of 60.17% is another positive; owners have plenty of skin in the game. Book value is ₹222.30, so P/B of 1.65 is not unreasonable, though it's not a deep asset play. The latest quarter shows net profit of ₹170 Cr on sales of ₹1,477 Cr, a net margin of about 11.5%, which is healthy for an agricultural product company. The Piotroski score of 6/9 is okay, not brilliant. The PEG of 0.43 looks attractive only if you believe the recent profit growth is sustainable—but with sales down, I wouldn't extrapolate that. FairStock Score 49/100 says mixed, and I agree. I would not pay up for growth here; I'd want a margin of safety. At 12 times earnings, with near-zero debt and a 1.03% dividend, the downside may be cushioned. But the top line needs to stop shrinking. If management can stabilise sales and maintain margins, this could be a satisfactory compounding machine. Until then, I classify it as a cyclical, not a stalwart.

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