⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
GODREJAGRO - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | GODREJAGRO | Market Cap | 11,325 Cr. | Current Price | 588 ₹ | High / Low | 876 ₹ |
| Stock P/E | 20.8 | Book Value | 141 ₹ | Dividend Yield | 1.87 % | ROCE | 24.4 % |
| ROE | 20.9 % | Face Value | 10.0 ₹ | DMA 50 | 593 ₹ | DMA 200 | 642 ₹ |
| Chg in FII Hold | -0.92 % | Chg in DII Hold | 0.20 % | PAT Qtr | 131 Cr. | PAT Prev Qtr | 177 Cr. |
| RSI | 48.2 | MACD | -3.13 | Volume | 1,09,625 | Avg Vol 1Wk | 1,47,000 |
| Low price | 506 ₹ | High price | 876 ₹ | PEG Ratio | 1.75 | Debt to equity | 0.57 |
| 52w Index | 22.1 % | Qtr Profit Var | -21.1 % | EPS | 27.5 ₹ | Industry PE | 25.5 |
📊 Core Financials
- Quarterly PAT declined from ₹177 Cr. to ₹131 Cr., showing short-term weakness.
- ROCE at 24.4% and ROE at 20.9% → strong efficiency and profitability.
- Debt-to-equity ratio of 0.57 → moderate leverage compared to peers.
- Cash flows supported by agri-business operations but cyclical in nature.
💹 Valuation Indicators
- P/E Ratio: 20.8 vs Industry PE of 25.5 → slightly undervalued compared to peers.
- P/B Ratio: ~4.2x (₹588 / ₹141) → moderate valuation.
- PEG Ratio: 1.75 → indicates moderately expensive valuation relative to growth.
- Intrinsic Value: Current price near fair zone, with limited upside.
🏢 Business Model & Competitive Advantage
- Agri-business company with diversified portfolio in animal feed, crop protection, and dairy.
- Strong brand presence under Godrej group provides trust and distribution strength.
- Exposure to rural demand cycles and commodity prices affects earnings stability.
📈 Technical & Entry Zone
- Current Price: ₹588, near 50 DMA (₹593) and below 200 DMA (₹642).
- RSI: 48.2 → neutral zone.
- MACD: -3.13 → bearish momentum.
- Entry Zone: Attractive accumulation between ₹540–₹560.
- Long-Term Holding: Suitable for investors with 3–5 year horizon, given agri-sector demand growth.
✅ Positive
- Strong ROCE and ROE.
- Dividend yield of 1.87% provides steady income.
- DII holdings increased by 0.20%, showing institutional support.
⚠️ Limitation
- Moderate debt levels (0.57 debt-to-equity).
- Quarterly profit decline (-21.1%) raises concerns.
📉 Company Negative News
- Decline in FII holdings (-0.92%).
- Stock corrected from 52-week high of ₹876.
📈 Company Positive News
- EPS of ₹27.5 reflects profitability despite cyclical pressures.
- Strong brand presence under Godrej group supports long-term stability.
🏭 Industry
- Agriculture and FMCG sector supported by rising rural demand and food security initiatives.
- Industry PE at 25.5 indicates moderate investor confidence.
🔎 Conclusion
GODREJAGRO is a diversified agri-business company with strong efficiency metrics and brand support.
Despite short-term earnings weakness and moderate debt, valuations remain reasonable compared to peers.
Best accumulated around ₹540–₹560 for investors with a 3–5 year horizon, while monitoring profit sustainability.