AGI Greenpac Ltd is Rated Hold by MarketsMOJO

Current Rating and Its Significance

MarketsMOJO’s 'Hold' rating for AGI Greenpac Ltd indicates a balanced outlook for investors. It suggests that while the stock is not currently a strong buy, it also does not warrant a sell recommendation. Investors should consider holding existing positions and closely monitoring the company’s performance and market conditions before making further investment decisions. This rating reflects a moderate risk-reward profile based on comprehensive analysis of multiple parameters.

Quality Assessment

As of 21 January 2026, AGI Greenpac Ltd maintains a good quality grade. The company demonstrates strong operational fundamentals, including a low average debt-to-equity ratio of 0.39 times, which indicates prudent financial management and limited leverage risk. Additionally, the firm has shown healthy long-term growth, with operating profit expanding at an annualised rate of 39.35%. This robust profitability growth is further supported by positive results over the last five consecutive quarters, signalling consistent operational performance.

Valuation Perspective

The valuation grade for AGI Greenpac Ltd is currently assessed as very attractive. The company’s return on capital employed (ROCE) stands at a solid 16.7%, reflecting efficient use of capital to generate profits. Moreover, the stock trades at an enterprise value to capital employed ratio of just 1.7, which is a discount compared to its peers’ historical averages. This suggests that the market is pricing the stock conservatively relative to its capital base and earnings potential. The price-to-earnings-to-growth (PEG) ratio of 0.4 further underscores the stock’s undervaluation relative to its earnings growth prospects.

Financial Trend Analysis

Financially, AGI Greenpac Ltd is rated positive. The latest data as of 21 January 2026 shows that the company’s profit after tax (PAT) for the most recent six months reached ₹164.97 crores, growing at a rate of 21.92%. The operating profit to interest coverage ratio is notably high at 13.77 times, indicating strong ability to service debt obligations. Despite these encouraging fundamentals, the stock has underperformed the broader market over the past year, delivering a negative return of -35.06%, while the BSE500 index has generated a positive return of 6.48%. This divergence suggests that market sentiment or technical factors may be weighing on the stock price despite solid financial performance.

Technical Outlook

The technical grade for AGI Greenpac Ltd is currently bearish. Recent price movements reflect downward momentum, with the stock declining by 1.43% on the latest trading day and showing negative returns across all key timeframes: -7.81% over one week, -12.93% over one month, and nearly -26% over three and six months. This bearish trend indicates that short-term market sentiment is weak, which may be influenced by broader sector dynamics or investor caution. Investors should be mindful of this technical backdrop when considering entry or exit points.

Institutional Investor Participation

Institutional investors have increased their stake in AGI Greenpac Ltd by 0.59% over the previous quarter, now collectively holding 9.73% of the company. This growing institutional interest is a positive signal, as these investors typically conduct thorough fundamental analysis and have greater resources to assess company prospects. Their increased participation may provide some support to the stock price and reflects confidence in the company’s medium to long-term outlook.

Market Performance Context

Despite the company’s strong fundamentals and attractive valuation, AGI Greenpac Ltd has underperformed the market significantly over the past year. While the BSE500 index has returned 6.48%, the stock has declined by approximately 35%. This underperformance highlights the importance of considering both fundamental and technical factors when evaluating the stock. The current 'Hold' rating reflects this nuanced view, balancing solid financial health against recent price weakness and market sentiment.

What This Rating Means for Investors

For investors, the 'Hold' rating on AGI Greenpac Ltd suggests a cautious approach. The company’s strong quality and financial metrics indicate a fundamentally sound business with growth potential. Its very attractive valuation presents an opportunity for value-oriented investors. However, the bearish technical trend and recent underperformance relative to the market advise prudence. Investors currently holding the stock may consider maintaining their positions while monitoring for signs of technical recovery or further fundamental developments. Prospective investors should weigh the company’s solid fundamentals against the prevailing market sentiment and price trends before initiating new positions.

Summary of Key Metrics as of 21 January 2026

AGI Greenpac Ltd’s key financial and market data as of today include:

• Market Capitalisation: Smallcap segment


• Mojo Score: 53.0 (Hold grade)


• Operating Profit Growth (Annualised): 39.35%


• Profit After Tax (Latest 6 months): ₹164.97 crores, growing at 21.92%


• Return on Capital Employed (ROCE): 16.7%


• Enterprise Value to Capital Employed: 1.7


• Debt to Equity Ratio (Average): 0.39 times


• Stock Returns: 1 Year -35.06%, YTD -16.08%


• Institutional Holding: 9.73%, increased by 0.59% last quarter

These figures illustrate a company with strong operational performance and attractive valuation metrics, tempered by recent price weakness and a cautious technical outlook.

Looking Ahead

Investors should continue to monitor AGI Greenpac Ltd’s quarterly earnings, debt levels, and market sentiment. Improvements in technical indicators or a rebound in stock price performance could prompt a reassessment of the rating. Meanwhile, the company’s consistent profit growth and low leverage provide a solid foundation for long-term value creation.

Conclusion

In conclusion, AGI Greenpac Ltd’s current 'Hold' rating by MarketsMOJO reflects a balanced view of the company’s strengths and challenges as of 21 January 2026. The stock offers attractive valuation and solid financial health but faces near-term headwinds from bearish technical trends and market underperformance. Investors should consider these factors carefully in their portfolio decisions, recognising the potential for both risk and reward inherent in the stock’s current profile.

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