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Check Before You Invest : Bharat Agri Fert & Realty Ltd

BSE: 531862 NSE: ISIN: INE842D01029
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Fertilizers

Snapshot

Q.1 Which industry/sub-sector does Bharat Agri Fert & Realty Ltd belong to?
Bharat Agri Fert & Realty Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Fertilizers segment.
Q.2 Is Bharat Agri Fert & Realty Ltd a good quality company?
Bharat Agri Fert & Realty Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Bharat Agri Fert & Realty Ltd undervalued or overvalued?
Bharat Agri Fert & Realty Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings - -
Price to Book 3.46 5.33
Price to Sales 6.55 12.19
EV to EBITDA 19.04 29.73
Q.4 Is Bharat Agri Fert & Realty Ltd a good buy now?
Bharat Agri Fert & Realty Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Bharat Agri Fert & Realty Ltd?
Bharat Agri Fert & Realty Ltd revenue growth is 13.9% for FY-2025, which is above its 5-year CAGR of 2.27%, indicating faster growth.

Q.2 Gross Profit margin of Bharat Agri Fert & Realty Ltd?
Bharat Agri Fert & Realty Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.1% for FY-2025, which is above its 5-year median of 11.9%, indicating increasing margins.

Q.3 Operating Profit Margin of Bharat Agri Fert & Realty Ltd?
Bharat Agri Fert & Realty Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.56% for FY-2025, which is above its 5-year median of -8.78% indicating increasing margins.

Q.4 Net Profit Margin of Bharat Agri Fert & Realty Ltd?
Bharat Agri Fert & Realty Ltd Net Profit Margin is 3.61% for FY-2025, is above its 5-year median of -14.39%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 14.1 11.9
Operating Profit Margin (%) 7.56 -8.78
Net Profit Margin (%) 3.61 -14.39

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Bharat Agri Fert & Realty Ltd?
Bharat Agri Fert & Realty Ltd Return on Asset is 0.72%, which is above its 5-year historical median of -3.15%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Bharat Agri Fert & Realty Ltd?
Bharat Agri Fert & Realty Ltd Return on capital employed is 4.54% for FY-2025, which is above its 5-year historical median of -0.36%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Bharat Agri Fert & Realty Ltd?
Bharat Agri Fert & Realty Ltd Return on equity is 1.84% for FY-2025, which is above its 5-year historical median of -6.37%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Bharat Agri Fert & Realty Ltd?
Bharat Agri Fert & Realty Ltd Cash conversion cycle is 725 days, above its 5-year historical median of 506 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.2 0.24
ROE (%) 1.84 -6.37
ROCE (%) 4.54 -0.36
Cash Conversion Cycle 725 days 506 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Bharat Agri Fert & Realty Ltd?
Bharat Agri Fert & Realty Ltd Debt-to-Equity ratio is 1.28, which is above the industry average of 0.41, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Bharat Agri Fert & Realty Ltd?
Bharat Agri Fert & Realty Ltd Debt to cash flow from operations is -8.5, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Bharat Agri Fert & Realty Ltd?

Q.1 Promoter shareholding and pledge status of Bharat Agri Fert & Realty Ltd?
Promoters hold 67.84% of the Bharat Agri Fert & Realty Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Bharat Agri Fert & Realty Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Bharat Agri Fert & Realty Ltd vs industry peers?
Bharat Agri Fert & Realty Ltd revenue CAGR is 2.27%, compared to the industry median CAGR of 8.22%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 13.9 8.2
Gross Profit Growth (%) 33.3 13.5
Operating Profit Growth (%) 0 7
Net Profit Growth (%) 0 14.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.2 1.19
ROE (%) 1.84 7.02
ROCE (%) 4.54 9.34
Cash Conversion Cycle (days) 724.81 68

Valuation & price assessment

Q.1 Stock return of Bharat Agri Fert & Realty Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 13.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
13.1% 12.8% -36.8% -26.2%
Q.2 Valuation ratios of Bharat Agri Fert & Realty Ltd vs historical?
The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings - - 13.55
Price to Book 3.46 5.33 1.43
Price to Sales 6.55 12.19 0.63
EV to EBITDA 19.04 29.73 7.82

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