M B Agro Prod. (MBAPL)

FairStock Score: 31/100 — RISKY

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

Key Financials

Strengths

• Revenue growth of 115.84% and profit growth of 77.43% show powerful near-term momentum.
• Piotroski F-Score of 7/9 indicates solid financial health across profitability, leverage, and efficiency metrics.
• ROCE of 18% with debt/equity of 0.68 suggests acceptable capital allocation and manageable leverage.
• Promoter holding of 74.76% aligns interests and reflects insider confidence.
• PEG of 0.41 implies the market may still be undervaluing near-term earnings growth.

Concerns

• P/E of 39.24 and P/B of 9.85 leave little margin of safety, especially for a cyclical fertilizer business.
• Dividend yield of 0.11% offers negligible income; total return depends entirely on future share price.
• ROE is not available and FairStock Score is only 44/100, making overall return quality mixed.
• From ₹109.75 to ₹515.75 in 52 weeks, the stock has already re-rated sharply, raising the bar for expectations.

AI Analysis

This business is growing at a pace I rarely see, but a good business in a cyclical industry can still be a bad price. MBAPL trades at ₹515.75, a P/E of 39.24 and P/B of 9.85, while book value is just ₹52.34. That leaves no margin of safety. The top line grew 115.84% and profit grew 77.43%, and a PEG of 0.41 tells me the market has not fully paid up for growth. The latest quarter had sales of ₹612 Cr and net profit of ₹32 Cr. Those are real numbers. The balance sheet is manageable with debt/equity at 0.68, and ROCE at 18% is decent. Promoter holding of 74.76% is a positive — owners are invested. The Piotroski score of 7/9 also suggests a solid recent financial position. But I cannot ignore the red flags. The dividend yield is 0.11%, so shareholders get no income; any return depends on future buyers paying more. ROE is not available, which is unusual for a company with this reported profitability, and the FairStock score of 44/100 is mixed. Fertilizers are commoditized; a bumper year can reverse when prices, subsidies, or monsoons turn. From a 52-week low of ₹109.75 to today's ₹515.75, the market has already discovered this story. If growth continues, the valuation can be earned out, but if this is a cyclical peak, a 39 times multiple will hurt. I would not build a position here. I wait, watch, and ask whether this growth is durable enough to compensate for the price. This is a fast grower, but not a predictable compounder.

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