Stanbik Agro Limited

Consumer Defensive — Farm Products · BSE

₹26.10₹0.00 (0.00%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Stanbik Agro Limited engages in dealing, manufacturing, and trading of agriculture goods, raw material, and other products in India.

IndustryFarm Products

SectorConsumer Defensive

Employees17

Annual revenue₹86 Cr

How does it make money?

Turns over ₹86 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 17 employees supports ₹5.05 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹5.05 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 14.4% 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 +330% while net margin moved -0% 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+330%

Margin effect-0%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ 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

65/ 100

Good

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

Valuation

88/ 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

1.6x

1.0Y Median

11.2x

12 monthly readings · mean 10.7x · range 7.8x–12.0x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 85% below its 1.0y median of 11.2x. 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 96% below the peer median of 43.3x.

vs. its own history

Cheap

11.2x median over 12 months · -85%

vs. sector peers

Cheap

43.3x median of 4 peers · -96%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.5x

PEG

0.03

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 98.3% to 13.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 105.2% to 14.4% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 85% 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 96% 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?

Returns on shareholder capital are falling
ROE has dropped from 98.3% to 13.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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.

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

1Revenue growth stays above 47% a year✓ 62.6% CAGR
Latest reported year was 63.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 5.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹4 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 11%✓ 14.4%
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 · 3 neutral · 1 weak

Market Cap

₹35 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

1.6x

Cheap

Cheap against the generic band

P/B Ratio

1.04x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹15.93

Profitable

Profitable on a per-share basis

ROE

17.4%

Strong

Strong capital efficiency

ROCE

14.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.38x

Low

Conservative leverage

Revenue Growth (YoY)

63.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

16.4%

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

-₹6 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

11.3%

Good

Assets are working hard

Operating Margin

4.0%

Weak

Thin margins leave little room for error

Net Margin

5.1%

Average

Average bottom-line conversion

Current Ratio

40.65

Comfortable

Healthy short-term liquidity

52W Range Position

31%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

24.4 / 25.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

55.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹20 Cr	₹27 Cr	₹52 Cr	₹86 Cr	+62.6%
EBITDA	₹1 Cr	₹2 Cr	₹5 Cr	₹5 Cr	+64.6%
EBITDA Margin	5.4%	8.0%	8.7%	5.6%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹4 Cr	₹4 Cr	+62.6%
EPS	₹0.76	₹1.39	₹2.81	—	—
ROE	98.3%	64.2%	22.4%	13.1%	—
ROCE	105.2%	73.4%	27.0%	14.4%	—
Total Debt	—	₹0 Cr	₹0 Cr	₹0 Cr	—
Free Cash Flow	₹0 Cr	-₹0 Cr	-₹10 Cr	-₹4 Cr	—

🟢 Revenue has grown at 62.6% a year over 3 years.

🟢 EBITDA has grown at 64.6% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 5.6% over 3 years.

🟢 PAT (Net Profit) has grown at 62.6% a year over 3 years.

🔴 ROE has fallen from 98.3% to 13.1% over 3 years (-85.2 pts).

🔴 ROCE has fallen from 105.2% to 14.4% over 3 years (-90.8 pts).

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹4 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹34 Cr

Total Liabilities

₹1 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

-₹4 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

85.1%

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

Compare with

Equitymaster, 16 Oct

Compare with

Equitymaster, 16 Oct

STANBIK AGRO LIMITED Share Price

Upstox, 05 May

Stanbik Agro IPO: Fixed Price, Dates, and Subscription Status

HDFC Sky, 12 Dec

Compare with

Equitymaster, 14 Oct

Compare with WHEEL & AXLES TEXT

Equitymaster, 16 Oct

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingProfitability

WeakBusiness Quality · 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.

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