GODREJAGRO - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.8

📊 Core Financials Breakdown

Profitability

ROE: 20.9% and ROCE: 24.4% — strong indicators of efficient capital use.

EPS: ₹27.8 — solid earnings base, with PAT rising to ₹169 Cr from ₹68.1 Cr, a 23.8% jump.

Debt-to-Equity: 0.25 — moderate leverage, manageable within agri-business norms.

Dividend & Book Value

Dividend Yield: 1.52% — decent, adds value for long-term holders.

Book Value: ₹134 — implies a P/B ratio of ~5.4, slightly elevated but acceptable given ROE.

💰 Valuation Metrics

Metric Value Comment

P/E Ratio 26.1 Slightly above industry average (23.1) — fair valuation

PEG Ratio 2.21 Expensive relative to growth — caution warranted

Intrinsic Value ~₹690–₹710 CMP slightly above fair value zone

Valuation is fair but not cheap, especially with a PEG ratio above 2.

🌾 Business Model & Competitive Edge

Sector: Diversified Agri-business — animal feed, crop protection, dairy, palm oil, and processed foods.

Strengths

Market leader in animal feed and palm oil processing.

Recent launch of Ashitaka herbicide and acquisition of Creamline Dairy stake boosts product depth

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Strong brand equity under the Godrej umbrella.

Government GST cuts on farming inputs may support margins

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Challenges

FII and DII holdings declined — signaling cautious institutional sentiment.

PEG ratio suggests growth expectations may be priced in.

RSI at 36.1 and MACD negative — technicals show short-term weakness.

📉 Technicals & Entry Zone

Current Price: ₹726

DMA 50: ₹761 | DMA 200: ₹752 — trading below both, bearish short-term trend

RSI: 36.1 — nearing oversold zone

MACD: Negative — momentum weak

📌 Suggested Entry Zone: ₹690–₹715

A dip near ₹700 would offer a better margin of safety for accumulation.

🧭 Long-Term Holding Guidance

Hold if invested: Strong fundamentals, diversified segments, and brand strength make it a stable long-term play.

Accumulate on dips: Ideal for investors seeking exposure to India’s agri and dairy growth story.

You can explore Godrej Agrovet’s full financials and technical chart or review its valuation and analyst insights for deeper context. Let me know if you'd like a peer comparison with Kaveri Seeds or Gujarat Ambuja Exports.

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stockanalysis.com

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simplywall.st

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