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Check Before You Invest : Prima Agro Ltd

BSE: 519262 NSE: ISIN: INE297D01018
  |   Sector:  FMCG   |   Industry:  Animal Feed

Snapshot

Q.1 Which industry/sub-sector does Prima Agro Ltd belong to?
Prima Agro Ltd belongs to the FMCG sector, operating specifically within the Animal Feed segment.
Q.2 Is Prima Agro Ltd a good quality company?
Prima Agro Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Prima Agro Ltd undervalued or overvalued?
Prima Agro Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Prima Agro Ltd a good buy now?
Prima 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

Q.1 Revenue growth of Prima Agro Ltd?
Prima Agro Ltd revenue growth is -19% for FY-2025 , which is below its 5 year CAGR of -5.7% , indicating slower growth.
Q.2 Gross Profit margin of Prima Agro Ltd?
Prima Agro Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.6% for FY-2025 , which is below its 5 year median of 28.1% , indicating decreasing margins.
Q.3 Operating Profit Margin of Prima Agro Ltd?
Prima Agro Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -10.75% for FY-2025 , which is below its 5 year median of 15.39% indicating decreasing margins.
Q.4 Net Profit Margin of Prima Agro Ltd?
Prima Agro Ltd Net Profit Margin is -4.47% for FY-2025 , is below with its 5 year median of 13.64%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 4.6 28.1
Operating Profit Margin -10.75 15.39
Net Profit Margin -4.47 13.64
Q.5 Return on Asset of Prima Agro Ltd?
Prima Agro Ltd Return on Asset is -1.69%, which is below its 5 year historical median of 7.1%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Prima Agro Ltd?
Prima Agro Ltd Return on equity is -2.93% for FY-2025 , which is below its historical median of 12.91%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Prima Agro Ltd?
Prima Agro Ltd Return on capital employed is -1.01% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Prima Agro Ltd?
Prima Agro Ltd Cash conversion cycle is -14 days, above its historical median of -35 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.38 0.52
ROE -2.93 12.91
ROCE -1.01 11.94
Cash Conversion Cycle -14 days -35 days
Q.9 Debt to Equity ratio of Prima Agro Ltd?
Prima Agro Ltd Debt-to-Equity ratio is 0.44 , which is above with the industry average of 0.12 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Prima Agro Ltd?
Prima Agro Ltd Debt to cash flow from operations is -6.69 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Prima Agro Ltd?
Promoters hold 40.15% of the Prima Agro Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Prima Agro Ltd vs industry peers?
Prima Agro Ltd revenue CAGR is -5.74% , compared to the industry median CAGR of 6.14% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 10.1 886.7
Gross Profit 0.5 33.7
Operating Profit -1.1 32
Net Profit -0.5 18
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.38 1.76
ROE -2.93 12.91
ROCE -1.01 11.94
Cash Conversion Cycle (days) -14.36 31

Valuation & price assessment

Q.1 Stock return of Prima Agro Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 10.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 10.9% -1.2% -11.7% -29.8%
Q.3 Valuation ratios of Prima Agro Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 8.04 3.91 22.69
Price to Book 0.56 1.37 2.86
Price to Sales 0.82 0.97 1.13
EV to EBITDA 5.42 3.40 13.16

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