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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 539660 | NSE: BESTAGRO

Best Agrolife Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 8:57 pm

Market Cap 1,393 Cr.
Current Price 590
High / Low918/454
Stock P/E37.8
Book Value 320
Dividend Yield0.51 %
ROCE16.5 %
ROE18.1 %
Face Value 10.0
PEG Ratio-24.48

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Best Agrolife Ltd

Competitors of Best Agrolife Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Epigral Ltd 8,306 Cr. 1,9292,408/88628.4 3370.26 %17.5 %16.9 % 10.0
Dharmaj Crop Guard Ltd 918 Cr. 273390/19722.7 1170.00 %14.5 %13.2 % 10.0
Bhaskar Agrochemicals Ltd 36.4 Cr. 69.8122/46.118.5 29.20.00 %14.7 %13.4 % 10.0
Bhagiradha Chemicals & Industries Ltd 3,841 Cr. 310448/117143 51.00.03 %9.69 %6.27 % 1.00
Best Agrolife Ltd 1,393 Cr. 590918/45437.8 3200.51 %16.5 %18.1 % 10.0
Industry Average11,925.47 Cr1,737.9741.23387.580.32%13.80%15.51%7.35

All Competitor Stocks of Best Agrolife Ltd

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Sales324232309464700328254612811314135519747
Expenses289200247398518270247482667296202465600
Operating Profit3532626618358713014419-6755147
OPM %11%14%20%14%26%18%3%21%18%6%-50%11%20%
Other Income0-0101114-31131
Interest257791013121519151616
Depreciation1376667786111010
Profit before tax3323495316843-12115118-6-9232121
Tax %24%34%23%25%23%29%-28%21%19%3%-22%33%22%
Net Profit2515384013031-89095-7-722195
EPS in Rs11.436.5516.1416.9754.9012.95-3.5638.2740.12-2.80-30.669.0040.03

Last Updated: November 6, 2024, 7:11 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 23, 2024, 2:59 pm

MonthMar 2017Mar 2018Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales1271519051,2111,7461,8731,716
Expenses1261548541,0451,4321,6481,563
Operating Profit1-251166314226153
OPM %0%-1%6%14%18%12%9%
Other Income1472336
Interest12515396267
Depreciation00312243338
Profit before tax005114125313454
Tax %575%100%27%26%24%21%
Net Profit-003710519210637
EPS in Rs-0.650.0316.8344.3181.2744.9415.57
Dividend Payout %0%798%12%5%4%7%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2021-20222022-20232023-2024
YoY Net Profit Growth (%)183.78%82.86%-44.79%
Change in YoY Net Profit Growth (%)0.00%-100.93%-127.65%

Best Agrolife Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 3 years from 2021-2022 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:%
3 Years:27%
TTM:-14%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:42%
TTM:-82%
Stock Price CAGR
10 Years:%
5 Years:19%
3 Years:-22%
1 Year:-32%
Return on Equity
10 Years:%
5 Years:%
3 Years:32%
Last Year:18%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 5:42 pm

MonthMar 2017Mar 2018Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital882224242424
Reserves4648108306504623732
Borrowings01933270568637578
Other Liabilities63352093843807291,069
Total Liabilities1171103729841,4752,0132,403
Fixed Assets0019180203362355
CWIP-0-045141513
Investments323-0-0-0-0-0
Other Assets851073498001,2581,6362,035
Total Assets1171103729841,4752,0132,403

Reserves and Borrowings Chart

Cash Flow

MonthMar 2017Mar 2018Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-14-4113-60-18036
Cash from Investing Activity +-34318-15-19-63
Cash from Financing Activity +4810-1167248-1
Net Cash Flow0-010-849-29

Free Cash Flow

MonthMar 2017Mar 2018Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow1.00-21.0018.00-104.00-254.00-411.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2017Mar 2018Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days858753777391
Inventory Days67199391864
Days Payable72124167521
Cash Conversion Cycle858748152297434
Working Capital Days6117543117157162
ROCE %0%41%34%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters40.78%40.78%45.42%45.42%47.30%47.30%48.20%50.10%50.10%50.10%50.10%50.10%
FIIs11.01%11.55%11.22%11.31%10.82%11.27%12.05%11.48%10.84%9.86%8.86%8.77%
DIIs0.00%0.23%0.19%0.20%0.20%2.57%2.57%2.58%2.55%2.63%2.53%2.53%
Public48.21%47.44%43.17%43.08%41.68%38.86%37.16%35.84%36.50%37.42%38.50%38.60%
No. of Shareholders3,7823,3134,9528,2258,76011,36021,20623,03927,20031,94037,57139,861

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Small Cap Fund500,0000.1729.15500,0002024-11-200%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 18
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)44.9481.2645.9816.832.95
Diluted EPS (Rs.)44.9481.2645.9816.832.95
Cash EPS (Rs.)58.7491.6349.3118.170.22
Book Value[Excl.RevalReserv]/Share (Rs.)259.68217.62138.4056.8572.37
Book Value[Incl.RevalReserv]/Share (Rs.)273.63223.03139.5458.8672.37
Revenue From Operations / Share (Rs.)792.27738.29512.08410.97189.91
PBDIT / Share (Rs.)96.74133.7570.8826.542.64
PBIT / Share (Rs.)82.94123.3965.8725.202.44
PBT / Share (Rs.)56.54106.9659.4923.050.11
Net Profit / Share (Rs.)44.9481.2644.3116.830.01
NP After MI And SOA / Share (Rs.)44.9481.2644.3116.830.01
PBDIT Margin (%)12.2118.1113.846.451.39
PBIT Margin (%)10.4616.7112.866.131.28
PBT Margin (%)7.1314.4811.615.600.05
Net Profit Margin (%)5.6711.008.654.090.00
NP After MI And SOA Margin (%)5.6711.008.654.090.00
Return on Networth / Equity (%)17.3037.3432.0129.600.02
Return on Capital Employeed (%)27.6650.0339.0039.732.94
Return On Assets (%)5.2713.0210.649.970.01
Long Term Debt / Equity (X)0.030.060.140.020.14
Total Debt / Equity (X)1.021.080.800.200.33
Asset Turnover Ratio (%)1.071.422.100.000.00
Current Ratio (X)1.211.351.361.492.44
Quick Ratio (X)0.470.550.580.821.89
Inventory Turnover Ratio (X)1.211.020.000.000.00
Dividend Payout Ratio (NP) (%)6.672.464.200.590.00
Dividend Payout Ratio (CP) (%)5.102.183.770.550.00
Earning Retention Ratio (%)93.3397.5495.8099.410.00
Cash Earning Retention Ratio (%)94.9097.8296.2399.450.00
Interest Coverage Ratio (X)3.668.1411.1012.351.14
Interest Coverage Ratio (Post Tax) (X)2.705.947.948.831.01
Enterprise Value (Cr.)1664.082890.662341.51974.5322.09
EV / Net Operating Revenue (X)0.881.661.931.080.14
EV / EBITDA (X)7.279.1413.9716.6710.48
MarketCap / Net Operating Revenue (X)0.571.391.751.080.01
Retention Ratios (%)93.3297.5395.7999.400.00
Price / BV (X)1.764.716.477.840.03
Price / Net Operating Revenue (X)0.571.391.751.080.01
EarningsYield0.090.070.040.030.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Best Agrolife Ltd as of November 21, 2024 is: 2,200.54

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Best Agrolife Ltd is Undervalued by 272.97% compared to the current share price 590.00

Intrinsic Value of Best Agrolife Ltd as of November 21, 2024 is: 2,166.56

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Best Agrolife Ltd is Undervalued by 267.21% compared to the current share price 590.00

Last 5 Year EPS CAGR: -1.54%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.17%, which is a positive sign.
  2. The company has higher reserves (338.14 cr) compared to borrowings (300.71 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (169.57 cr) and profit (90.43 cr) over the years.
  1. The stock has a high average Working Capital Days of 119.17, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 183.83, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Best Agrolife Ltd:
    1. Net Profit Margin: 5.67%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 27.66% (Industry Average ROCE: 13.8%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 17.3% (Industry Average ROE: 15.51%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 2.7
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.47
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 37.8 (Industry average Stock P/E: 30.47)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 1.02
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Best Agrolife Ltd. is a Public Limited Listed company incorporated on 10/01/1992 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74110DL1992PLC116773 and registration number is 116773. Currently company belongs to the Industry of Agro Chemicals/Pesticides. Company’s Total Operating Revenue is Rs. 1134.27 Cr. and Equity Capital is Rs. 23.64 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Agro Chemicals/PesticidesB-4, Bhagwan Dass Nagar, East Punjabi Bagh, New Delhi Delhi 110026info@bestagrolife.com
http://www.bestagrolife.com
Management
NamePosition Held
Mr. Braj Kishore PrasadChairman & Ind.Director
Mr. Vimal KumarManaging Director
Ms. Isha LuthraWhole Time Director
Mr. Balavenkatarama Prasad SuryadevaraWhole Time Director
Mr. Shuvendu Kumar SatpathyNon Executive Director
Mrs. ChetnaIndependent Director

FAQ

What is the latest intrinsic value of Best Agrolife Ltd?

The latest intrinsic value of Best Agrolife Ltd as on 21 November 2024 is ₹2200.54, which is 272.97% higher than the current market price of ₹590.00.

What is the Market Cap of Best Agrolife Ltd?

The Market Cap of Best Agrolife Ltd is 1,393 Cr..

What is the current Stock Price of Best Agrolife Ltd as on 21 November 2024?

The current stock price of Best Agrolife Ltd as on 21 November 2024 is ₹590.

What is the High / Low of Best Agrolife Ltd stocks in FY 2024?

In FY 2024, the High / Low of Best Agrolife Ltd stocks is 918/454.

What is the Stock P/E of Best Agrolife Ltd?

The Stock P/E of Best Agrolife Ltd is 37.8.

What is the Book Value of Best Agrolife Ltd?

The Book Value of Best Agrolife Ltd is 320.

What is the Dividend Yield of Best Agrolife Ltd?

The Dividend Yield of Best Agrolife Ltd is 0.51 %.

What is the ROCE of Best Agrolife Ltd?

The ROCE of Best Agrolife Ltd is 16.5 %.

What is the ROE of Best Agrolife Ltd?

The ROE of Best Agrolife Ltd is 18.1 %.

What is the Face Value of Best Agrolife Ltd?

The Face Value of Best Agrolife Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Best Agrolife Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE