Natl.Fertilizer (NFL)

FairStock Score: 31/100 — RISKY

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

Key Financials

AI Analysis

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

At first glance, NFL's numbers tell a story of a company waking up. Sales grew 17.31%, profits jumped 195.13%, and the Piotroski score of 7/9 suggests recent operational improvement. But as Graham taught, one season's growth is not evidence of a wonderful business. With a market cap of ₹3,793 crore and price at ₹77.41, the P/E is 19.48. That is not cheap for a company earning only 5.64% return on equity and 7.57% return on capital employed. The latest quarter earned ₹135 crore on ₹6,870 crore of sales—a net margin under 2%. That is a razor-thin shield against input costs or any business shock. The debt-to-equity ratio of 1.77 is concerning; the growth story is built on leverage. Book value is ₹53.71, so the stock trades at 1.44 times book. Not distressed, but not a wide margin of safety either. Dividend yield of 2.02% provides modest comfort, and promoter holding of 74.71% shows skin in the game. Yet a PEG of 0.18 assumes the 195% profit growth is sustainable, which is unlikely for a business with such low returns and high leverage. I would rather wait for stronger returns on capital, lower debt, and evidence that the company can earn a reasonable margin through a full cycle. Until then, this looks like a cyclically improved commodity business, not the wonderful business I seek.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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