IFB Agro Industries Limited

Consumer Defensive — Beverages - Wineries & Distilleries · NSE

₹860.20−₹49.35 (−5.43%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

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

In simple words: Reasonable but unspectacular business quality, 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, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

IFB Agro Industries Limited manufactures and bottling of alcoholic beverages and processed marine food in India and internationally. It operates in two segments, Spirit, Spirituous Beverages and Allied Products, and Marine Products.

IndustryBeverages - Wineries & Distilleries

SectorConsumer Defensive

Employees587

Annual revenue₹1,386 Cr

How does it make money?

Turns over ₹1,386 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 587 employees supports ₹2.36 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.36 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES 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?Little sign of one

Returns on capital of 11.2% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE51.0%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +13% while net margin moved +2% 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+13%

Margin effect+2%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 8.4% is weak

Quality vs. Valuation

Company Quality

49/ 100

Average

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

Valuation

70/ 100

Cheap

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

13.5x

3Y Median

11.3x

40 monthly readings · mean 20.5x · range 7.9x–56.9x

Sector Median

43.3x

median of 4 sector peers

⚠️Current valuation is approximately 20% above its 3y median of 11.3x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 69% below the peer median of 43.3x.

vs. its own history

Fair

11.3x median over 40 months · +20%

vs. sector peers

Cheap

43.3x median of 4 peers · -69%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.2x

PEG

2.84

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 6.6% to 8.2% over 3 years.
Cash generation is improving
Free cash flow is up 275% over 3 years.
Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 286% over 3 years, from ₹19 Cr to ₹75 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 80% against revenue up 13% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 62% against revenue up 13% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 6.6% to 8.2%. 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 69% 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 ₹69 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 80% against revenue up 13%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 4.1% 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.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above 6%✓ 8.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 4.1% CAGR
Latest reported year was 35.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹69 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 11.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

₹806 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.5x

Cheap

Cheap against the generic band

P/B Ratio

1.20x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹63.68

Profitable

Profitable on a per-share basis

ROE

8.4%

Moderate

Moderate capital efficiency

ROCE

11.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

35.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

18.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹69 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

16.1x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

5.6%

Average

Average margins

Net Margin

4.0%

Average

Average bottom-line conversion

Current Ratio

4.33

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.69

Defensive

Steadier than the market

52W Range Position

16%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

874.5 / 915.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

51.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,228 Cr	₹921 Cr	₹1,043 Cr	₹1,386 Cr	+4.1%
EBITDA	₹81 Cr	₹0 Cr	₹47 Cr	₹114 Cr	+11.9%
EBITDA Margin	6.6%	0.0%	4.5%	8.2%	—
PAT (Net Profit)	₹49 Cr	-₹8 Cr	₹22 Cr	₹56 Cr	+4.8%
EPS	₹52.45	₹-8.62	₹23.85	₹60.3	+4.8%
ROE	9.0%	-1.5%	3.7%	8.4%	—
ROCE	12.1%	-2.3%	5.8%	11.2%	—
Total Debt	₹19 Cr	₹11 Cr	₹6 Cr	₹75 Cr	+56.8%
Free Cash Flow	₹18 Cr	-₹64 Cr	₹43 Cr	₹69 Cr	+55.4%

🟢 Revenue has grown at 4.1% a year over 3 years.

🟢 EBITDA has grown at 11.9% a year over 3 years.

🟢 EBITDA Margin has risen from 6.6% to 8.2% over 3 years (+1.6 pts).

🟢 PAT (Net Profit) has grown at 4.8% a year over 3 years.

🟢 EPS has grown at 4.8% a year over 3 years.

🟡 ROE has held roughly flat at 8.4% over 3 years.

🟡 ROCE has held roughly flat at 11.2% over 3 years.

🔴 Total Debt has grown at 56.8% a year over 3 years.

🟢 Free Cash Flow has grown at 55.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹872 Cr

Total Liabilities

₹199 Cr

Cash & Equivalents

₹176 Cr

Operating Cash Flow

₹93 Cr

Capex

-₹24 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.5%

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

1 positive1 mixed4 general

IFB Agro Industries Share Price Target 2026: Rs 1,100 Analyst Forecast

Univest, 11 JunAnalyst view

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

IFB Agro Industries FY26 net profit jumps to ₹6,090 lakh

scanx.trade, 04 OctResults

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

IFB Agro Industries Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 29 Aug

IFB Agro Industries Limited (NSE:IFBAGRO) Held Back By Insufficient Growth Even After Shares Climb 30%

Simply Wall Street, 10 Jan

IFB Agro Industries vs Nifty 50: Share Price Performance Compared

Univest, 28 Sept

Dolly Khanna adds smallcap stock that has delivered 105% return in last 6 months! Do you own?

The Economic Times, 17 Jan

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality

WeakGrowth · Profitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑