Godrej Agrovet Ltd. Stock Falls to 52-Week Low of Rs.538

Recent Price Movement and Market Context

On 12 Jan 2026, Godrej Agrovet’s stock price fell to an intraday low of Rs.538, representing a 3.26% drop on the day and a 1.14% decline compared to the previous close. This marks the third consecutive day of losses, with the stock shedding 3.37% over this period. The stock’s performance today notably lagged the FMCG sector by 1.35%, underscoring its relative weakness.

Trading below all key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages — the stock’s technical indicators suggest sustained downward momentum. This contrasts with the broader market, where the Sensex recovered from an early negative opening to close marginally higher at 83,611.42, just 3.05% shy of its 52-week high of 86,159.02. Mega-cap stocks led the market gains, while Godrej Agrovet’s share price continued to retreat.

Long-Term Performance and Financial Metrics

Over the last year, Godrej Agrovet has delivered a total return of -26.01%, significantly underperforming the Sensex’s positive 8.10% return in the same period. The stock has also lagged the BSE500 index across multiple time frames, including the last three years, one year, and three months, indicating persistent challenges in maintaining investor confidence.

Financially, the company’s long-term growth rates have been modest. Net sales have increased at an annualised rate of 7.86% over the past five years, while operating profit has grown at 8.43% annually. These figures suggest steady but unspectacular expansion, which has not translated into strong share price appreciation.

Quarterly and Half-Yearly Results

The company’s recent quarterly results have shown some softness. Profit after tax (PAT) for the quarter stood at Rs.92.59 crores, reflecting a decline of 17.6% compared to the previous corresponding period. Additionally, the half-yearly inventory turnover ratio is notably low at 0.64 times, indicating slower movement of stock relative to peers.

Dividend payout ratio (DPR) has also contracted to 42.08%, the lowest level recorded, which may influence income-focused investors. These near-term financial indicators align with the subdued share price performance and contribute to the current market sentiment.

Valuation and Efficiency Metrics

Despite the recent price weakness, Godrej Agrovet maintains an attractive valuation profile relative to its sector peers. The company’s return on capital employed (ROCE) stands at a healthy 15.7%, signalling efficient use of capital in generating profits. Furthermore, the enterprise value to capital employed ratio is 3.2, suggesting the stock is trading at a discount compared to historical averages within the FMCG sector.

Over the past year, while the stock price has declined by 26.01%, the company’s profits have increased by 9.8%, resulting in a price/earnings to growth (PEG) ratio of 2.5. This indicates that earnings growth has not been fully reflected in the share price, though the PEG ratio remains elevated relative to typical benchmarks.

Shareholding and Market Position

Promoters remain the majority shareholders of Godrej Agrovet Ltd., maintaining significant control over the company’s strategic direction. The FMCG sector, in which the company operates, continues to be competitive, with Godrej Agrovet facing challenges in sustaining growth momentum relative to larger peers and market leaders.

Summary of Key Performance Indicators

To summarise, Godrej Agrovet’s stock has reached a new 52-week low of Rs.538, reflecting a combination of subdued sales growth, declining quarterly profits, and valuation pressures. The stock’s Mojo Score currently stands at 37.0, with a Sell grade assigned on 13 Oct 2025, downgraded from Hold. The market capitalisation grade is rated at 3, indicating mid-tier size within the FMCG sector.

While the broader market indices have shown resilience, Godrej Agrovet’s share price continues to face headwinds, with technical indicators and fundamental metrics pointing to ongoing challenges in regaining upward momentum.

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