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Check Before You Invest : Stanbik Agro Ltd

BSE: 544659 NSE: ISIN: INE16QA01011
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Stanbik Agro Ltd belong to?
Stanbik Agro Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Stanbik Agro Ltd a good quality company?
Stanbik Agro 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 Stanbik Agro Ltd undervalued or overvalued?
Stanbik Agro Ltd appears Overvalued, as its key valuation ratios are higher 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 3-year
Historic Median
Price to Earnings 10.69 11.86
Price to Book 1.38 1.54
Price to Sales 0.76 0.84
EV to EBITDA 8.69 9.64
Q.4 Is Stanbik Agro Ltd a good buy now?
Stanbik 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.

Q.1 Gross Profit margin of Stanbik Agro Ltd?
Stanbik Agro Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.7% for FY-2025, which is above its 3-year median of 8%, indicating increasing margins.

Q.2 Operating Profit Margin of Stanbik Agro Ltd?
Stanbik Agro Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.73% for FY-2025, which is above its 3-year median of 7.99% indicating increasing margins.

Q.3 Net Profit Margin of Stanbik Agro Ltd?
Stanbik Agro Ltd Net Profit Margin is 7.12% for FY-2025, is in line with its 3-year median of 6.97%, indicating stable margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 8.7 8
Operating Profit Margin (%) 8.73 7.99
Net Profit Margin (%) 7.12 6.97

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Stanbik Agro Ltd?
Stanbik Agro Ltd Return on Asset is 20.59%, which is above its 3-year historical median of 14.71%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Stanbik Agro Ltd?
Stanbik Agro Ltd Return on capital employed is 45.41% for FY-2025, which is below its 3-year historical median of 100.19%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Stanbik Agro Ltd?
Stanbik Agro Ltd Return on equity is 38.09% for FY-2025, which is below its 3-year historical median of 94.53%, indicating the business is making worse use of its shareholders capital.

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

Q.7 Debt to Equity ratio of Stanbik Agro Ltd?
Stanbik Agro Ltd Debt-to-Equity ratio is 0.01, which is lower the industry average of 0.03, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Stanbik Agro Ltd?
Stanbik Agro Ltd Debt to cash flow from operations is -0.01, which is at a unhealthy level.

Ownership & governance

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

Q.1 Promoter shareholding and pledge status of Stanbik Agro Ltd?
Promoters hold 68.52% of the Stanbik Agro Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Stanbik Agro Ltd vs industry peers?
Stanbik Agro Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 4.99%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) - 5
Gross Profit Growth (%) 115.2 17.6
Operating Profit Growth (%) 116 21
Net Profit Growth (%) 102.2 19
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 2.89 0.66
ROE (%) 38.09 2.9
ROCE (%) 45.41 4.31
Cash Conversion Cycle (days) 70.66 49

Valuation & price assessment

Q.1 Stock return of Stanbik Agro Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Stanbik Agro Ltd vs historical?
The current P/E ratio of 10.69 is lower than its historical median of 11.86, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 10.69 11.86 35.02
Price to Book 1.38 1.54 1.68
Price to Sales 0.76 0.84 2.16
EV to EBITDA 8.69 9.64 15.51

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