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Check Before You Invest : MRP Agro Ltd

BSE: 543262 NSE: ISIN: INE0D7801012
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does MRP Agro Ltd belong to?
MRP Agro Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is MRP Agro Ltd a good quality company?
MRP Agro 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 MRP Agro Ltd undervalued or overvalued?
MRP Agro 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 18.3 47.11
Price to Book 2.55 3.13
Price to Sales 1.51 1.15
EV to EBITDA 11.14 32.96
Q.4 Is MRP Agro Ltd a good buy now?
MRP Agro 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 MRP Agro Ltd?
MRP Agro Ltd revenue growth is 140.6% for FY-2025, which is above its 5-year CAGR of 23.39%, indicating faster growth.

Q.2 Gross Profit margin of MRP Agro Ltd?
MRP Agro Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.1% for FY-2025, which is above its 5-year median of 1.8%, indicating increasing margins.

Q.3 Operating Profit Margin of MRP Agro Ltd?
MRP Agro Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.13% for FY-2025, which is above its 5-year median of 1.78% indicating increasing margins.

Q.4 Net Profit Margin of MRP Agro Ltd?
MRP Agro Ltd Net Profit Margin is 6.64% for FY-2025, is above its 5-year median of 1.29%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 10.1 1.8
Operating Profit Margin (%) 9.13 1.78
Net Profit Margin (%) 6.64 1.29

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of MRP Agro Ltd?
MRP Agro Ltd Return on Asset is 27.59%, which is above its 5-year historical median of 5.44%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of MRP Agro Ltd?
MRP Agro Ltd Return on capital employed is 39.23% for FY-2025, which is above its 5-year historical median of 7.76%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of MRP Agro Ltd?
MRP Agro Ltd Return on equity is 30.33% for FY-2025, which is above its 5-year historical median of 5.79%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of MRP Agro Ltd?
MRP Agro Ltd Cash conversion cycle is 22 days, below its 5-year historical median of 59 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 4.16 4.04
ROE (%) 30.33 5.79
ROCE (%) 39.23 7.76
Cash Conversion Cycle 22 days 59 days

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

Q.9 Debt to Equity ratio of MRP Agro Ltd?
MRP Agro Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.03, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of MRP Agro Ltd?
MRP Agro Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of MRP Agro Ltd?

Q.1 Promoter shareholding and pledge status of MRP Agro Ltd?
Promoters hold 65.67% of the MRP Agro Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does MRP Agro Ltd performance compare with that of its Peers?

Q.1 Revenue growth of MRP Agro Ltd vs industry peers?
MRP Agro Ltd revenue CAGR is 23.39%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 140.6 -
Gross Profit Growth (%) 900 17.9
Operating Profit Growth (%) 800 16.4
Net Profit Growth (%) 600 17.3
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 4.16 0.52
ROE (%) 30.33 2.05
ROCE (%) 39.23 3.6
Cash Conversion Cycle (days) 22.29 46

Valuation & price assessment

Q.1 Stock return of MRP Agro Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 50.91% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 50.9% 45.7% -23.8%
Q.2 Valuation ratios of MRP Agro Ltd vs historical?
The current P/E ratio of 18.3 is lower than its historical median of 47.11, indicating that the stock is trading below 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 18.3 47.11 33.62
Price to Book 2.55 3.13 1.57
Price to Sales 1.51 1.15 2.21
EV to EBITDA 11.14 32.96 14.09

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