Check Before You Invest : MRC Agrotech Ltd

BSE: 540809 NSE: ISIN: INE333Y01017

| Sector: Miscellaneous | Industry: Trading

Snapshot

Q.1 Which industry/sub-sector does MRC Agrotech Ltd belong to?

MRC Agrotech Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.

Q.2 Is MRC Agrotech Ltd a good quality company?

MRC Agrotech Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is MRC Agrotech Ltd undervalued or overvalued?

MRC Agrotech Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is MRC Agrotech Ltd a good buy now?

MRC Agrotech 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 MRC Agrotech Ltd?

MRC Agrotech Ltd revenue growth is 121.4% for FY-2025, which is above its 5-year CAGR of 13.91%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of MRC Agrotech Ltd?

MRC Agrotech Ltd Return on capital employed is 5.21% for FY-2025, which is above its 5-year historical median of 3.59%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of MRC Agrotech Ltd?

MRC Agrotech Ltd Return on Asset is 2.8%, which is above its 5-year historical median of 2.04%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of MRC Agrotech Ltd?

MRC Agrotech Ltd Return on equity is 3.95% for FY-2025, which is above its 5-year historical median of 2.77%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of MRC Agrotech Ltd?

MRC Agrotech Ltd Cash conversion cycle is 58 days, below its 5-year historical median of 151 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	1.04	0.71
ROE	3.95	2.77
ROCE	5.21	3.59
Cash Conversion Cycle	58 days	151 days

Q.6 Gross Profit margin of MRC Agrotech Ltd?

MRC Agrotech Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.7% for FY-2025, which is in line with its 5-year median of 3.7%, indicating stable margins.

Q.7 Operating Profit Margin of MRC Agrotech Ltd?

MRC Agrotech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.02% for FY-2025, which is above its 5-year median of -1.43% indicating increasing margins.

Q.8 Net Profit Margin of MRC Agrotech Ltd?

MRC Agrotech Ltd Net Profit Margin is 2.7% for FY-2025, is in line with with its 5-year median of 2.76%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	3.7	3.7
Operating Profit Margin	2.02	-1.43
Net Profit Margin	2.7	2.76

Q.9 Debt to Equity ratio of MRC Agrotech Ltd?

MRC Agrotech Ltd Debt-to-Equity ratio is 0.03, which is lower with the industry average of 0.17, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of MRC Agrotech Ltd?

MRC Agrotech Ltd Debt to cash flow from operations is 0.48, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of MRC Agrotech Ltd?

Promoters hold 21.31% of the MRC Agrotech Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of MRC Agrotech Ltd vs industry peers?

MRC Agrotech Ltd revenue CAGR is 13.91%, compared to the industry median CAGR of 12.68%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	121.4	12.7
Gross Profit Growth	0	17.4
Operating Profit Growth	0	16.7
Net Profit Growth	-	17.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.04	0.81
ROE	3.95	2.6
ROCE	5.21	3.8
Cash Conversion Cycle (days)	57.87	61

Valuation & price assessment

Q.1 Stock return of MRC Agrotech Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 42.62% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	42.6%	1.7%	243.8%

Q.3 Valuation ratios of MRC Agrotech Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 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	147.62	87.46	33.44
Price to Book	2.4	1.54	1.58
Price to Sales	3.08	2.48	2.20
EV to EBITDA	101.79	40.99	14.05

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