MRP Agro Limited

Consumer Defensive — Food Distribution · BSE

₹89.99+₹1.46 (+1.65%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:26 pm

Understanding the Business

Company site ↗

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

What does this company do?

MRP Agro Limited engages in trading of food grains, fly-ash, and coal business in India. It offers food grains, oilseeds, pulses, agricultural commodities, and cattle feed. The company offers its products online under the MRP brand name; and exports its products.

IndustryFood Distribution

SectorConsumer Defensive

Employees15

Annual revenue₹59 Cr

How does it make money?

Turns over ₹59 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 15 employees supports ₹3.94 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.94 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 11.8% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +109% while net margin moved +543% 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+109%

Margin effect+543%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.44 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

58/ 100

Average

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

Valuation

73/ 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

23.9x

3Y Median

38.4x

40 monthly readings · mean 37.7x · range 12.4x–120.3x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 38% below its 3y median of 38.4x. 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 45% below the peer median of 43.3x.

vs. its own history

Cheap

38.4x median over 40 months · -38%

vs. sector peers

Cheap

43.3x median of 4 peers · -45%

vs. generic bands

Fair

15x–35x

EV/EBITDA

15.2x

PEG

0.17

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 1.6% to 11.5% over 3 years.
Return on equity is rising
ROE has improved from 3.8% to 9.9%.
Return on capital is rising
ROCE has improved from 5.2% to 11.8%.
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

6 items require attention · 5 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 511% over 3 years, from ₹0 Cr to ₹2 Cr.
🔴High leverageFinancial
Debt/Equity of 5.86x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 377% against revenue up 109% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 557% against revenue up 109% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 29% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 1.6% to 11.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 38% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 45% 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?

Leverage amplifies any setback
Debt/Equity of 5.86x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 377% against revenue up 109%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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
5 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

1Revenue growth stays above 21% a year✓ 27.8% CAGR
Latest reported year was 3.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 11.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 9%✓ 11.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

1 good · 8 neutral · 2 weak

Market Cap

₹103 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

23.9x

Fair

Fairly valued against the generic band

P/B Ratio

2.45x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹3.76

Profitable

Profitable on a per-share basis

ROE

9.9%

Moderate

Moderate capital efficiency

ROCE

11.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

5.86x

High

High leverage

Revenue Growth (YoY)

3.9%

Modest

Modest growth

Profit Growth (YoY)

5.8%

Modest

Slow profit growth

Dividend Yield

None

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

Free Cash Flow

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

4.2%

Weak

Thin margins leave little room for error

Net Margin

7.1%

Average

Average bottom-line conversion

Current Ratio

18.74

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.44

Defensive

Steadier than the market

52W Range Position

51%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

90.1 / 89.8

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

50.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹28 Cr	₹43 Cr	₹104 Cr	₹59 Cr	+27.8%
EBITDA	₹0 Cr	₹1 Cr	₹11 Cr	₹7 Cr	+146.0%
EBITDA Margin	1.6%	3.2%	10.2%	11.5%	—
PAT (Net Profit)	₹0 Cr	₹1 Cr	₹7 Cr	₹4 Cr	+137.6%
EPS	₹1.02	₹3.03	₹6.78	₹3.67	+53.2%
ROE	3.8%	7.7%	21.2%	9.9%	—
ROCE	5.2%	9.2%	27.8%	11.8%	—
Total Debt	₹0 Cr	₹2 Cr	—	₹2 Cr	+82.9%
Free Cash Flow	₹1 Cr	-₹5 Cr	-₹4 Cr	-₹3 Cr	—

🟢 Revenue has grown at 27.8% a year over 3 years.

🟢 EBITDA has grown at 146.0% a year over 3 years.

🟢 EBITDA Margin has risen from 1.6% to 11.5% over 3 years (+9.9 pts).

🟢 PAT (Net Profit) has grown at 137.6% a year over 3 years.

🟢 EPS has grown at 53.2% a year over 3 years.

🟢 ROE has risen from 3.8% to 9.9% over 3 years (+6.1 pts).

🟢 ROCE has risen from 5.2% to 11.8% over 3 years (+6.7 pts).

🔴 Total Debt has grown at 82.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹3 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹46 Cr

Total Liabilities

₹4 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.4%

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

6 general

MRP Agro Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

MRP Agro 8th AGM resolutions pass with 100% votes in favour

scanx.trade, 01 Oct

Compare SMR UNISOFT with

Equitymaster, 28 Sept

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

Value Research, 30 Aug

Seeds Agri-Inputs Penny Stocks in India 2027: 5 Picks

Univest, 17 Sept

MRP Agro schedules 8th AGM for September 29; proposes auditor reappointment

scanx.trade, 05 Sept

Watch Items

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

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingBusiness Quality · Financial Health · Profitability

WeakRisk

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. 5 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑