Aries Agro Limited

Basic Materials — Agricultural Inputs · NSE

₹479.30+₹7.20 (+1.53%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Aries Agro Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Aries Agro Limited, together with its subsidiaries, engages in the manufacturing and sale of micronutrients and other nutritional products for plants and animals.

IndustryAgricultural Inputs

SectorBasic Materials

Employees1,365

Annual revenue₹740 Cr

How does it make money?

Turns over ₹740 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 1,365 employees supports ₹54.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹54.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, ULTRATECH CEMENT LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 19.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE22.3%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +57% while net margin moved +60% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+57%

Margin effect+60%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.12 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

75/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

79/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

13.1x

3Y Median

15.5x

40 monthly readings · mean 16.8x · range 12.4x–26.2x

Sector Median

28.7x

median of 4 sector peers

🟢Current valuation is approximately 16% below its 3y median of 15.5x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 55% below the peer median of 28.7x.

vs. its own history

Fair

15.5x median over 40 months · -16%

vs. sector peers

Cheap

28.7x median of 4 peers · -55%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.6x

PEG

0.37

What's Good / What's Bad

🟢 What's Going Well5

Debt is being paid down
Total debt is down 44% over 3 years.
Return on equity is rising
ROE has improved from 7.1% to 12.8%.
Return on capital is rising
ROCE has improved from 16.7% to 19.7%.
Very low debt
Debt/Equity of 0.16x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.7% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 44% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 55% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹37 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 12% a year✓ 16.2% CAGR
Latest reported year was 16.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 11.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹37 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 19.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 4 neutral · 0 weak

Market Cap

₹623 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.1x

Cheap

Cheap against the generic band

P/B Ratio

1.86x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹36.72

Profitable

Profitable on a per-share basis

ROE

12.8%

Moderate

Moderate capital efficiency

ROCE

19.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.16x

Low

Conservative leverage

Revenue Growth (YoY)

16.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

48.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.31%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹37 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

12.2%

Average

Average margins

Net Margin

6.2%

Average

Average bottom-line conversion

Current Ratio

1.69

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.12

Defensive

Steadier than the market

52W Range Position

81%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

477.0 / 459.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

49.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹472 Cr	₹516 Cr	₹622 Cr	₹740 Cr	+16.2%
EBITDA	₹55 Cr	₹57 Cr	₹71 Cr	₹87 Cr	+16.4%
EBITDA Margin	11.6%	11.1%	11.5%	11.7%	—
PAT (Net Profit)	₹17 Cr	₹19 Cr	₹34 Cr	₹43 Cr	+35.8%
EPS	₹13.17	₹14.94	₹26.16	₹32.95	+35.8%
ROE	7.1%	7.5%	11.7%	12.8%	—
ROCE	16.7%	16.3%	17.8%	19.7%	—
Total Debt	₹100 Cr	₹74 Cr	₹49 Cr	₹56 Cr	-17.6%
Free Cash Flow	₹39 Cr	₹46 Cr	₹72 Cr	₹37 Cr	-1.3%

🟢 Revenue has grown at 16.2% a year over 3 years.

🟢 EBITDA has grown at 16.4% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 11.7% over 3 years.

🟢 PAT (Net Profit) has grown at 35.8% a year over 3 years.

🟢 EPS has grown at 35.8% a year over 3 years.

🟢 ROE has risen from 7.1% to 12.8% over 3 years (+5.8 pts).

🟢 ROCE has risen from 16.7% to 19.7% over 3 years (+3.0 pts).

🟢 Total Debt has shrunk at 17.6% a year over 3 years.

🟡 Free Cash Flow has been broadly flat over 3 years (-1.3% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹639 Cr

Total Liabilities

₹301 Cr

Cash & Equivalents

₹25 Cr

Operating Cash Flow

₹86 Cr

Capex

-₹49 Cr

Shareholding (proxy)

Institutional Holding

3.2%

Insider Holding

54.1%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

22 Sept 2026

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
ULTRATECH CEMENT LIMITED	37.6x	11.1%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

3 positive3 general

Should You Be Adding Aries Agro (NSE:ARIES) To Your Watchlist Today?

Simply Wall Street, 02 Jun

Aries Agro Ltd. Upper Circuit Today: Price, Data and Peers

Univest, 05 Oct

Aries Agro AGM approves FY26 results, ₹2.50 dividend

scanx.trade, 09 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Aries Agro Q1 Profit Rises 49% to ₹14.84 Cr; Revenue Up 16%

HDFC Sky, 12 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Aries Agro Limited (ARIES.NS) Surges 7.95% to ₹495.35, Testing Key Levels - IV Crush Alert

https://www.siam.in/, 02 Sept

Aries Agro consolidated net profit rises 48.65% in the June 2026 quarter

Business Standard, 12 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality · Profitability · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑