Godrej Agrovet Ltd. Stock Falls to 52-Week Low of Rs.511.2

Stock Price Movement and Market Context

On 23 Jan 2026, Godrej Agrovet’s shares fell sharply, closing at Rs.511.2, down 2.39% on the day. The stock underperformed its sector by 2.33%, with an intraday low also recorded at Rs.511.2, reflecting persistent downward momentum. This price is notably below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish sentiment among market participants.

The broader market environment was also subdued, with the Sensex declining by 709.69 points (-0.83%) to 81,626.25 after a flat opening. The Sensex itself is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating mixed technical signals. Additionally, the NIFTY REALTY index also hit a 52-week low today, underscoring sectoral pressures in the market.

Long-Term and Recent Performance Analysis

Godrej Agrovet’s stock has delivered a negative return of -29.06% over the past year, significantly lagging behind the Sensex’s positive 6.58% gain during the same period. This underperformance extends beyond the last year, with the stock also trailing the BSE500 index over the last three years, one year, and three months, highlighting a persistent trend of subdued returns.

Over the last five years, the company’s net sales have grown at a modest annual rate of 7.86%, while operating profit has increased at 8.43%. These growth rates are considered below par relative to sector peers, contributing to the cautious stance reflected in the stock’s Mojo Grade, which was downgraded from Hold to Sell on 13 Oct 2025. The current Mojo Score stands at 37.0, reinforcing the sell rating.

Quarterly and Half-Year Financial Indicators

The company’s recent quarterly profit after tax (PAT) stood at Rs.92.59 crores, reflecting a decline of 17.6% compared to the previous quarter. This contraction in profitability adds to the concerns surrounding the stock’s performance. Furthermore, the half-year inventory turnover ratio is notably low at 0.64 times, indicating slower inventory movement relative to industry norms.

Dividend payout ratio (DPR) is also at a low level of 42.08%, which may be viewed as conservative in terms of shareholder returns. These financial metrics collectively suggest challenges in maintaining robust earnings growth and efficient asset utilisation in the near term.

Valuation and Efficiency Metrics

Despite the subdued price performance, Godrej Agrovet exhibits some attractive valuation characteristics. The company’s return on capital employed (ROCE) is a healthy 15.7%, signalling effective use of capital to generate profits. Additionally, the enterprise value to capital employed ratio stands at a modest 3.1, suggesting the stock is trading at a discount relative to its capital base.

Over the past year, while the stock price declined by 29.06%, the company’s profits increased by 9.8%, resulting in a price/earnings to growth (PEG) ratio of 2.4. This indicates that earnings growth has not been fully reflected in the stock price, although the PEG ratio remains elevated compared to ideal valuation thresholds.

Shareholding and Sector Positioning

Godrej Agrovet operates within the FMCG industry and sector, where it faces competition from both established and emerging players. The majority shareholding is held by promoters, which typically provides stability in ownership structure. However, the stock’s current market capitalisation grade is rated at 3, reflecting a mid-tier valuation status within its peer group.

The stock’s 52-week high was Rs.876.3, indicating a substantial decline of approximately 41.6% from that peak to the current 52-week low of Rs.511.2. This wide price range over the past year underscores the volatility and challenges faced by the company in maintaining investor confidence and market valuation.

Summary of Key Performance Indicators

To summarise, Godrej Agrovet’s key metrics include:

• 52-week low price: Rs.511.2


• 52-week high price: Rs.876.3


• One-year stock return: -29.06%


• Sensex one-year return: +6.58%


• Net sales growth (5 years CAGR): 7.86%


• Operating profit growth (5 years CAGR): 8.43%


• Quarterly PAT decline: -17.6% to Rs.92.59 crores


• Inventory turnover ratio (HY): 0.64 times


• Dividend payout ratio (annual): 42.08%


• ROCE: 15.7%


• Enterprise value to capital employed: 3.1


• PEG ratio: 2.4


• Mojo Score: 37.0 (Sell rating)

The combination of these factors paints a picture of a stock that has experienced notable price depreciation, underwhelming growth metrics, and cautious market sentiment over the past year.

Market and Sector Comparison

Compared to the broader market, Godrej Agrovet’s performance has been subdued. While the Sensex has maintained a positive trajectory over the last year, the company’s stock has declined sharply. The FMCG sector itself has faced mixed conditions, with some peers maintaining stronger growth and valuation metrics. Godrej Agrovet’s current trading discount relative to peer historical valuations further highlights the divergence in market perception.

Technical Indicators and Trading Patterns

The stock’s position below all major moving averages suggests a sustained downtrend. The failure to hold above short-term averages such as the 5-day and 20-day moving averages indicates limited buying interest in the near term. The breach of longer-term averages, including the 100-day and 200-day moving averages, often signals a more entrenched negative trend from a technical perspective.

Given the stock’s recent intraday low of Rs.511.2 and closing price at this level, the technical outlook remains cautious. The stock’s relative underperformance compared to the sector and broader indices further emphasises the challenges it faces in regaining upward momentum.

Conclusion

Godrej Agrovet Ltd.’s stock reaching a 52-week low of Rs.511.2 reflects a period of sustained underperformance relative to the broader market and its sector peers. The company’s modest growth rates, declining quarterly profits, and subdued financial ratios contribute to the cautious market stance. While valuation metrics such as ROCE and enterprise value to capital employed suggest some underlying strengths, the overall picture remains one of a stock facing significant headwinds in both price and performance metrics.

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