Godrej Agrovet Limited

Consumer Defensive — Packaged Foods · NSE

₹634.00+₹13.80 (+2.23%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by short-term liabilities exceed short-term assets, small-cap size, which brings sharper price swings, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Godrej Agrovet Limited, an agri-business company, provides products and services that enhance crop and livestock yields in India and internationally. The company operates through Animal Feed, Vegetable Oil, Crop Protection, Dairy, Poultry and Processed Food, and Other segments.

IndustryPackaged Foods

SectorConsumer Defensive

Employees2,774

Annual revenue₹10,203 Cr

How does it make money?

Turns over ₹10,203 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 2,774 employees supports ₹3.68 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.68 Cr

Who are its competitors?

The closest listed comparisons in its industry are NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD, TATA CONSUMER PRODUCT LTD, DABUR INDIA LTD. 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 23.1%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 23.3% against a peer median of 51.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE51.0%

What is the outlook?

5 analysts covering the stock expect revenue to grow about 8.6% and earnings to grow about 29.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+8.6%

Est. earnings growth+29.4%

Analysts5

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +10% while net margin moved +43% 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+10%

Margin effect+43%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 27.3x already prices in growth
• P/E is close to its own historical median of 32.7x
✗ P/B of 6.00x is a steep premium to book

Quality vs. Valuation

Company Quality

66/ 100

Good

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

Valuation

61/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

27.3x

3Y Median

32.7x

40 monthly readings · mean 33.4x · range 23.9x–54.2x

Sector Median

51.7x

median of 4 sector peers

🟢Current valuation is approximately 16% below its 3y median of 32.7x. 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 47% below the peer median of 51.7x.

vs. its own history

Fair

32.7x median over 40 months · -16%

vs. sector peers

Cheap

51.7x median of 4 peers · -47%

vs. generic bands

Fair

15x–35x

EV/EBITDA

14.0x

PEG

1.69

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 6.7% to 9.5% over 3 years.
Cash generation is improving
Free cash flow is up 91% over 3 years.
Return on equity is rising
ROE has improved from 12.9% to 23.3%.
Return on capital is rising
ROCE has improved from 15.3% to 23.1%.
High return on capital employed
ROCE of 23.1% is the mark of a business that converts capital into profit efficiently.
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 watch

🟡Short-term liquidity is tightFinancial
Current ratio of 0.95 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 23.1% 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.
Margin expansion has further to run
EBITDA margin has risen from 6.7% to 9.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 47% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Growth barely outpaces inflation
Revenue compounding at 3.1% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Small 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

1EBITDA margin holds above 7%✓ 9.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 3.1% CAGR
Latest reported year was 9.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹984 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 20%✓ 23.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹12,199 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

27.3x

Fair

Fairly valued against the generic band

P/B Ratio

6.00x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹23.22

Profitable

Profitable on a per-share basis

ROE

23.3%

Strong

Strong capital efficiency

ROCE

23.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.73x

Moderate

Moderate leverage

Revenue Growth (YoY)

9.6%

Modest

Modest growth

Profit Growth (YoY)

-16.3%

Falling

Profits are shrinking

Dividend Yield

1.74%

Modest

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

Free Cash Flow

₹984 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

18.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

6.4%

Average

Average margins

Net Margin

4.3%

Average

Average bottom-line conversion

Current Ratio

0.95

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.32

Defensive

Steadier than the market

52W Range Position

67%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

642.6 / 624.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

38.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹9,300 Cr	₹9,526 Cr	₹9,356 Cr	₹10,203 Cr	+3.1%
EBITDA	₹622 Cr	₹822 Cr	₹927 Cr	₹965 Cr	+15.8%
EBITDA Margin	6.7%	8.6%	9.9%	9.5%	—
PAT (Net Profit)	₹302 Cr	₹360 Cr	₹430 Cr	₹473 Cr	+16.1%
EPS	₹15.71	₹18.71	₹22.34	₹24.57	+16.1%
ROE	12.9%	14.3%	18.0%	23.3%	—
ROCE	15.3%	16.5%	20.7%	23.1%	—
Total Debt	₹1,433 Cr	₹1,416 Cr	₹1,396 Cr	₹1,574 Cr	+3.2%
Free Cash Flow	₹515 Cr	₹294 Cr	₹745 Cr	₹984 Cr	+24.1%

🟢 Revenue has grown at 3.1% a year over 3 years.

🟢 EBITDA has grown at 15.8% a year over 3 years.

🟢 EBITDA Margin has risen from 6.7% to 9.5% over 3 years (+2.8 pts).

🟢 PAT (Net Profit) has grown at 16.1% a year over 3 years.

🟢 EPS has grown at 16.1% a year over 3 years.

🟢 ROE has risen from 12.9% to 23.3% over 3 years (+10.4 pts).

🟢 ROCE has risen from 15.3% to 23.1% over 3 years (+7.8 pts).

🔴 Total Debt has grown at 3.2% a year over 3 years.

🟢 Free Cash Flow has grown at 24.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹6,170 Cr

Total Liabilities

₹4,007 Cr

Cash & Equivalents

₹299 Cr

Operating Cash Flow

₹1,281 Cr

Capex

-₹297 Cr

Shareholding (proxy)

Institutional Holding

10.3%

Insider Holding

72.7%

Corporate Actions

Dividend Rate

₹11

Ex-Dividend Date

29 Jul 2026

Analyst Consensus

Recommendations

5 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹801

+26.3% vs CMP

Target Range

₹710 – ₹1,010

Peer Comparison

Company	P/E	ROE
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%
TATA CONSUMER PRODUCT LTD	59.3x	7.5%
DABUR INDIA LTD	34.7x	17.2%

Recent News

1 positive3 mixed1 negative1 general

Godrej Agrovet (NSEI:GODREJAGRO) Stock Forecast & Analyst Predictions

Simply Wall Street, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

64% Upside? Godrej Agrovet Share Price Skyrockets 9% As Kotak Raises Fair Value

NDTV Profit, 01 Sept

GODREJAGRO Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Godrej Agrovet Share Price Rises 7.28%: Today’s Analysis

Univest, 25 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Godrej Agrovet shares falls nearly 4% after Q1 profit drops 14%

Moneycontrol.com, 06 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Godrej Agrovet FY26 revenue crosses ₹10,000 crore, profit up 20%

scanx.trade, 10 JulResults

🟢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 · Profitability · Risk

MiddlingBusiness Quality

WeakValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

1 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑