Nirman Agri (NIRMAN)

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

Key Financials

Strengths

• Sales growth of 30.04% and profit growth of 27.34% show strong momentum, with latest-quarter net profit of ₹15 Cr on ₹146 Cr sales.
• ROCE of 35.16% and Piotroski F-score of 7/9 indicate good capital efficiency and sound financial health.
• PEG of 0.05 and P/E of 1.45 offer a starting margin of safety if earnings prove sustainable.
• Dividend yield of 3.90% and promoter holding of 44.34% provide some shareholder alignment.

Concerns

• 52-week range of ₹30–₹231 shows an ~77% fall from the high; the market is signalling possible cyclicality or undisclosed trouble.
• No book value, P/B, ROE, or debt/equity data means balance-sheet margin of safety cannot be verified.
• Agricultural commodity business likely lacks pricing power and a durable moat; today's 10.3% net margin may not be permanent.
• Extremely low P/E could be a value trap if the latest quarter's profit is seasonal or non-recurring.

AI Analysis

At ₹53.10, Nirman Agri wears a disguise: a market cap of just ₹41 Cr, a trailing P/E of 1.45, and a PEG of 0.05 against 27.34% profit growth. The latest quarter adds sales of ₹146 Cr and net profit of ₹15 Cr, a 10.3% margin. Sales grew 30.04%, ROCE is 35.16%, the Piotroski F-score is a solid 7/9, and shareholders earn a 3.90% dividend yield. On the surface, this is an astonishing bargain. But a number doesn't solve a story; it tells a story. That 52-week range — ₹231 down to ₹30, now ₹53.10 — tells me this is a cyclical, not an enduring grower. Agricultural products are commodity businesses. I can't build a moat against the price of rain, government policy, and a good monsoon. At the top of an agri cycle, earnings look fat and P/E looks tiny; that is exactly when Buffett asks for extra caution. The bigger problem is the hole in the data: no book value, no P/B, no ROE, no debt-equity. I cannot verify asset quality or the balance sheet behind the reported profit. Graham's margin of safety needs assets, not just a low multiple. Yes, promoter holding at 44.34% gives some alignment, and a 7/9 F-score is encouraging. But if this were a simple, durable compounder, why would the market value it at only 41 Cr while it earns 15 Cr in a single quarter? I want more quarterly proof, a balance sheet, and an honest explanation of the crash. Until then, I observe, I do not buy. The price is interesting; the value is still unknown.

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