GODREJAGRO - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.6

🌾 Financials & Profitability Snapshot

EPS (₹22.4) with PAT of ₹66.1 Cr vs ₹110 Cr: Significant drop QoQ — this could reflect seasonality, cost pressures, or a one-off dip.

ROCE & ROE (both 16.6%): Respectable, especially for an agri-business. Reflects competent capital deployment.

Debt-to-Equity (0.59): Higher than ideal — implies some reliance on leverage, which needs monitoring during macro tightening cycles.

Dividend Yield (1.30%): Generous compared to most growth-oriented mid-caps.

💰 Valuation Indicators

Metric Value Meaning

P/E Ratio 39.9 Rich vs. industry average (20.6)

P/B Ratio ~6.8 Indicates premium over asset base

PEG Ratio -46.9 Highly negative—likely due to erratic or declining earnings

Intrinsic Value — Estimated ~₹750–₹790 — slightly over fair value

🔍 The negative PEG and high P/E suggest valuation ahead of earnings. Market may be pricing in future stability or turnaround.

🧬 Business Model & Strategic Edge

Segment: Animal feed, crop protection, dairy, and palm oil — diversified presence in agri and allied sectors.

Strengths

Godrej brand equity and distribution reach.

Strong rural footprint and product portfolio balancing staples and premium segments.

Risks

FII and DII exit reflects confidence concerns (-0.28% and -0.48%, respectively).

Debt and falling PAT could indicate strain in some business verticals.

📈 Technicals & Entry Range

Current Price: ₹843

DMA 50 / 200: ₹787 / ₹749 — momentum intact but flattening

RSI (66.7): Slightly elevated; caution warranted

MACD (18.0): Positive momentum, yet not euphoric

Volume: Cooling — some profit-booking underway

🛒 Suggested Entry Zone: ₹770–₹800 Enter closer to DMA 50 if RSI softens toward 55–60. Avoid chasing without clarity on earnings revival.

🧭 Long-Term Holding Guidance

GODREJAGRO can be a play on India's agri push and rising rural consumption. For a stronger conviction

Monitor PAT stability across quarters

Watch for ROCE crossing 18%+ and debt reduction

Potential upside from dairy or oil palm monetization

Solid brand and reach, but growth metrics need a refresh. Keep your eye on margins and macro tailwinds.

Want to layer this with UPL, Dhanuka Agritech, or even Rallis for a portfolio-level agri exposure map? I can help sketch a field-tested comparison 🌱📈 Let’s fertilize your insights.

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