MoneyWorks4Me

Check Before You Invest : Farm Peace Ltd

BSE: 544905 NSE: ISIN: INE0W2E01010
  |   Sector:  Agriculture & Allied activities   |   Industry:  Agriculture

Snapshot

Q.1 Which industry/sub-sector does Farm Peace Ltd belong to?
Farm Peace Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Agriculture segment.
Q.2 Is Farm Peace Ltd a good quality company?
Farm Peace 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 Farm Peace Ltd undervalued or overvalued?
Farm Peace 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 29.11 29.11
Price to Book 4.48 4.48
Price to Sales 2.41 2.41
EV to EBITDA 18.44 18.44
Q.4 Is Farm Peace Ltd a good buy now?
Farm Peace 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 Farm Peace Ltd?
Farm Peace Ltd revenue growth is 14.6% for FY-2026, which is below its 3-year CAGR of 51.19%, indicating slower growth.

Q.2 Gross Profit margin of Farm Peace Ltd?
Farm Peace Ltd Gross profit margin which is the profit after deduction of direct costs, is 12% for FY-2026, which is in line with its 3-year median of 12.3%, indicating stable margins.

Q.3 Operating Profit Margin of Farm Peace Ltd?
Farm Peace Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.14% for FY-2026, which is in line with its 3-year median of 14.14% indicating stable margins.

Q.4 Net Profit Margin of Farm Peace Ltd?
Farm Peace Ltd Net Profit Margin is 8.29% for FY-2026, is in line with its 3-year median of 8.41%, indicating stable margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 12 12.3
Operating Profit Margin (%) 14.14 14.14
Net Profit Margin (%) 8.29 8.41

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Farm Peace Ltd?
Farm Peace Ltd Return on Asset is 8.9%, which is below its 3-year historical median of 13.18%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Farm Peace Ltd?
Farm Peace Ltd Return on capital employed is 26.65% for FY-2026, which is below its 3-year historical median of 36.42%. 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 Farm Peace Ltd?
Farm Peace Ltd Return on equity is 18.96% for FY-2026, which is below its 3-year historical median of 29.61%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Farm Peace Ltd?
Farm Peace Ltd Cash conversion cycle is 108 days, above its 3-year historical median of 85 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 1.07 1.57
ROE (%) 18.96 29.61
ROCE (%) 26.65 36.42
Cash Conversion Cycle 108 days 85 days

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

Q.9 Debt to Equity ratio of Farm Peace Ltd?
Farm Peace Ltd Debt-to-Equity ratio is 0.26, 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 Farm Peace Ltd?
Farm Peace Ltd Debt to cash flow from operations is -1.57, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Farm Peace Ltd?

Q.1 Promoter shareholding and pledge status of Farm Peace Ltd?
Promoters hold % of the Farm Peace Ltd, with % of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Farm Peace Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Farm Peace Ltd vs industry peers?
Farm Peace Ltd revenue CAGR is 51.19%, compared to the industry median CAGR of 8.34%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 14.6 8.3
Gross Profit Growth (%) 10 23.9
Operating Profit Growth (%) 33.3 33.1
Net Profit Growth (%) 14.3 26
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.07 0.92
ROE (%) 18.96 9.52
ROCE (%) 26.65 10.26
Cash Conversion Cycle (days) 107.76 80

Valuation & price assessment

Q.1 Stock return of Farm Peace 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 Farm Peace Ltd vs historical?
The current P/E ratio of 29.11 is in line with than its historical median of 29.11, indicating that the stock is trading near 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 29.11 29.11 19.04
Price to Book 4.48 4.48 1.83
Price to Sales 2.41 2.41 1.70
EV to EBITDA 18.44 18.44 13.20

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