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Check Before You Invest : Raghuvansh Agrofarms Ltd

BSE: 538921 NSE: ISIN: INE865P01016
  |   Sector:  Agriculture & Allied activities   |   Industry:  Agriculture

Snapshot

Q.1 Which industry/sub-sector does Raghuvansh Agrofarms Ltd belong to?
Raghuvansh Agrofarms Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Agriculture segment.
Q.2 Is Raghuvansh Agrofarms Ltd a good quality company?
Raghuvansh Agrofarms Ltd is a quality company, based on a 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 Raghuvansh Agrofarms Ltd undervalued or overvalued?
Raghuvansh Agrofarms Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than 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 9.58 50.00
Price to Book 0.76 4.59
Price to Sales 7.43 35.50
EV to EBITDA 7.27 38.43
Q.4 Is Raghuvansh Agrofarms Ltd a good buy now?
Raghuvansh Agrofarms 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 Raghuvansh Agrofarms Ltd?
Raghuvansh Agrofarms Ltd revenue growth is -31.9% for FY-2025, which is below its 5-year CAGR of -16.49%, indicating slower growth.

Q.2 Gross Profit margin of Raghuvansh Agrofarms Ltd?
Raghuvansh Agrofarms Ltd Gross profit margin which is the profit after deduction of direct costs, is 110.5% for FY-2025, which is above its 5-year median of 92.7%, indicating increasing margins.

Q.3 Operating Profit Margin of Raghuvansh Agrofarms Ltd?
Raghuvansh Agrofarms Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 37.48% for FY-2025, which is in line with its 5-year median of 37.48% indicating stable margins.

Q.4 Net Profit Margin of Raghuvansh Agrofarms Ltd?
Raghuvansh Agrofarms Ltd Net Profit Margin is 77.57% for FY-2025, is above its 5-year median of 70.3%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 110.5 92.7
Operating Profit Margin (%) 37.48 37.48
Net Profit Margin (%) 77.57 70.3

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Raghuvansh Agrofarms Ltd?
Raghuvansh Agrofarms Ltd Return on Asset is 6.82%, which is below its 5-year historical median of 9.07%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Raghuvansh Agrofarms Ltd?
Raghuvansh Agrofarms Ltd Return on capital employed is 10.26% for FY-2025, which is below its 5-year historical median of 11.19%. 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 Raghuvansh Agrofarms Ltd?
Raghuvansh Agrofarms Ltd Return on equity is 8.19% for FY-2025, which is below its 5-year historical median of 9.63%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Raghuvansh Agrofarms Ltd?
Raghuvansh Agrofarms Ltd Cash conversion cycle is 43 days, below its 5-year historical median of 73 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) 0.09 0.13
ROE (%) 8.19 9.63
ROCE (%) 10.26 11.19
Cash Conversion Cycle 43 days 73 days

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

Q.9 Debt to Equity ratio of Raghuvansh Agrofarms Ltd?
Raghuvansh Agrofarms Ltd Debt-to-Equity ratio is 0.20, which is above the industry average of 0.13, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Raghuvansh Agrofarms Ltd?
Raghuvansh Agrofarms Ltd Debt to cash flow from operations is -4.41, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Raghuvansh Agrofarms Ltd?

Q.1 Promoter shareholding and pledge status of Raghuvansh Agrofarms Ltd?
Promoters hold 21.11% of the Raghuvansh Agrofarms Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Raghuvansh Agrofarms Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Raghuvansh Agrofarms Ltd vs industry peers?
Raghuvansh Agrofarms Ltd revenue CAGR is -16.49%, compared to the industry median CAGR of 0.00%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -31.9 0
Gross Profit Growth (%) 0.7 15.2
Operating Profit Growth (%) -18 21.2
Net Profit Growth (%) -10.9 8.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.09 0.53
ROE (%) 8.19 7.6
ROCE (%) 10.26 8.57
Cash Conversion Cycle (days) 42.58 73

Valuation & price assessment

Q.1 Stock return of Raghuvansh Agrofarms Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -0.2% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-0.2% -20.7% -43.7% -47.9%
Q.2 Valuation ratios of Raghuvansh Agrofarms Ltd vs historical?
The current P/E ratio of 9.58 is lower than its historical median of 50.00, 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 9.58 50.00 20.70
Price to Book 0.76 4.59 1.93
Price to Sales 7.43 35.50 1.89
EV to EBITDA 7.27 38.43 13.08

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