MRC Agrotech Ltd. Fundamental Analysis (BSE: MRCAGRO.BO)
MRC Agrotech Ltd. Fundamental Analysis (BSE: MRCAGRO.BO)
MRC Agrotech Ltd. (BSE: MRCAGRO.BO) shows weak financial fundamentals with a PE ratio of 112.32, profit margin of 1.43%, and ROE of 4.16%. The company generates $0.7B in annual revenue with weak year-over-year growth of 1.70%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MRCAGRO.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakMRCAGRO.BO struggles to generate sufficient returns from assets.
Valuation Score
ModerateMRCAGRO.BO shows balanced valuation metrics.
Growth Score
WeakMRCAGRO.BO faces weak or negative growth trends.
Financial Health Score
ExcellentMRCAGRO.BO maintains a strong and stable balance sheet.
Profitability Score
WeakMRCAGRO.BO struggles to sustain strong margins.
Key Financial Metrics
Is MRCAGRO.BO Expensive or Cheap?
P/E Ratio
MRCAGRO.BO trades at 112.32 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MRCAGRO.BO's PEG of -2.58 indicates potential undervaluation.
Price to Book
The market values MRC Agrotech Ltd. at 1.73 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 25.26 times EBITDA. This signals the market has high growth expectations.
How Well Does MRCAGRO.BO Make Money?
Net Profit Margin
For every $100 in sales, MRC Agrotech Ltd. keeps $1.43 as profit after all expenses.
Operating Margin
Core operations generate 1.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.16 in profit for every $100 of shareholder equity.
ROA
MRC Agrotech Ltd. generates $1.39 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MRC Agrotech Ltd. generates limited operating cash flow of $32.84M, signaling weaker underlying cash strength.
Free Cash Flow
MRC Agrotech Ltd. produces free cash flow of $30.43M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.49 in free cash annually.
FCF Yield
MRCAGRO.BO converts 7.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
112.32
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.58
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.10
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How MRCAGRO.BO Stacks Against Its Sector Peers
| Metric | MRCAGRO.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 112.32 | 29.39 | Worse (Expensive) |
| ROE | 4.16% | 1109.00% | Weak |
| Net Margin | 1.43% | -25189.00% (disorted) | Weak |
| Debt/Equity | 0.19 | 0.82 | Strong (Low Leverage) |
| Current Ratio | 1.10 | 21.75 | Neutral |
| ROA | 1.39% | -1328226.00% (disorted) | Weak |
MRCAGRO.BO outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews MRC Agrotech Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-50.84%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-59.55%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
110.95%
Industry Style: Cyclical, Value, Infrastructure
High Growth