GODREJAGRO - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | GODREJAGRO | Market Cap | 11,469 Cr. | Current Price | 596 ₹ | High / Low | 876 ₹ |
| Stock P/E | 20.2 | Book Value | 151 ₹ | Dividend Yield | 1.84 % | ROCE | 23.4 % |
| ROE | 20.8 % | Face Value | 10.0 ₹ | DMA 50 | 591 ₹ | DMA 200 | 629 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | 0.48 % | PAT Qtr | 88.2 Cr. | PAT Prev Qtr | 131 Cr. |
| RSI | 51.2 | MACD | 3.78 | Volume | 1,20,183 | Avg Vol 1Wk | 1,30,686 |
| Low price | 506 ₹ | High price | 876 ₹ | PEG Ratio | 0.62 | Debt to equity | 0.30 |
| 52w Index | 24.4 % | Qtr Profit Var | 29.6 % | EPS | 27.4 ₹ | Industry PE | 23.2 |
📊 Financials: GODREJAGRO maintains strong fundamentals with ROE at 20.8% and ROCE at 23.4%, reflecting efficient capital utilization. EPS at ₹27.4 supports earnings strength. Debt-to-equity at 0.30 indicates moderate leverage but manageable. Quarterly PAT declined to ₹88.2 Cr. from ₹131 Cr., showing earnings pressure despite long-term stability.
💹 Valuation: Current P/E of 20.2 is below the industry average of 23.2, suggesting relative undervaluation. PEG ratio of 0.62 indicates growth is fairly priced. Book value of ₹151 vs. CMP ₹596 highlights a reasonable P/B multiple, supported by profitability and dividend yield of 1.84%.
🏗️ Business Model: GODREJAGRO operates in agribusiness, including animal feed, crop protection, and dairy. Its competitive advantage lies in diversified product lines, strong brand presence, and integration across agriculture value chains.
📈 Entry Zone: Accumulation near ₹580–₹600 (close to 50 DMA support) offers favorable risk-reward. RSI at 51.2 indicates neutral momentum, while MACD at 3.78 shows mild bullishness. Exit strategy near ₹640–₹650 with stop-loss around ₹560.
🕰️ Long-Term Holding: Strong fundamentals, dividend yield, and sectoral demand support long-term holding. Earnings volatility remains a risk, but valuation comfort makes it suitable for cautious accumulation.
Positive
- Strong ROCE (23.4%) and ROE (20.8%)
- P/E (20.2) below industry average (23.2)
- PEG ratio of 0.62 indicates fair growth valuation
- Dividend yield of 1.84% adds steady returns
- Institutional support with DII holdings up (+0.48%)
Limitation
- Quarterly PAT decline (₹131 Cr. → ₹88.2 Cr.)
- Moderate debt-to-equity ratio (0.30)
- 52-week performance relatively weak (24.4%)
- FII holdings decreased (-0.03%)
Company Negative News
- No major negative news reported; earnings decline remains the primary concern
Company Positive News
- Strong fundamentals with dividend yield support
- DII holdings increased (+0.48%)
Industry
- Agribusiness sector supported by rising demand for food and crop protection
- Industry P/E at 23.2 reflects moderate valuations
Conclusion
GODREJAGRO is fundamentally strong with efficient profitability and fair valuation. Entry near ₹580–₹600 is favorable, with profit booking advised near ₹640–₹650. Best suited for long-term investors seeking stable agribusiness exposure with moderate risk.