Godrej Agrovet Ltd. Stock Hits 52-Week Low at Rs.532

Stock Price Movement and Market Context

On 19 Jan 2026, Godrej Agrovet's share price touched Rs.532, the lowest level in the past year, reflecting a continued downward trend. Despite this, the stock outperformed its sector by 0.76% on the day, showing a modest recovery after two consecutive days of decline. However, it remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained bearish momentum.

In contrast, the broader market, represented by the Sensex, experienced a negative session, closing at 82,996.47 points, down 0.69% or 498.02 points from the previous close. The Sensex is currently 3.81% below its 52-week high of 86,159.02 and has been on a three-week losing streak, shedding 3.22% over that period. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, suggesting mixed signals for the broader market.

Long-Term and Recent Performance Analysis

Godrej Agrovet's stock has underperformed significantly over the past year, delivering a negative return of 25.52%, compared to the Sensex's positive 8.37% gain. The stock's 52-week high was Rs.876.3, highlighting the extent of the decline. This underperformance extends beyond the last year, with the stock lagging behind the BSE500 index over the last three years, one year, and three months.

Financially, the company has exhibited modest growth in net sales and operating profit over the last five years, with annual growth rates of 7.86% and 8.43%, respectively. However, these figures have not translated into stronger stock performance, reflecting investor concerns about the company's growth trajectory.

Quarterly and Half-Year Financial Indicators

The company’s recent quarterly results reveal some pressures. The Profit After Tax (PAT) for the quarter stood at Rs.92.59 crores, reflecting a decline of 17.6% compared to the previous quarter. Additionally, the half-year inventory turnover ratio is notably low at 0.64 times, indicating slower inventory movement relative to peers. The Dividend Payout Ratio (DPR) is also at a low 42.08%, which may influence income-focused investors.

These figures contribute to the current market sentiment and the stock’s downgrade from a Hold to a Sell rating on 13 Oct 2025, as per the MarketsMOJO grading system. The company’s Mojo Score stands at 37.0, reinforcing the cautious stance with a Sell grade, down from the previous Hold rating.

Valuation and Efficiency Metrics

Despite the subdued price performance, Godrej Agrovet maintains some attractive valuation metrics. The company’s Return on Capital Employed (ROCE) is a healthy 15.7%, signalling efficient use of capital relative to earnings. Furthermore, the Enterprise Value to Capital Employed ratio is 3.2, suggesting the stock is trading at a discount compared to its peers’ historical averages.

Profit growth over the past year has been positive at 9.8%, although this has not been sufficient to offset the stock’s price decline. The Price/Earnings to Growth (PEG) ratio stands at 2.4, indicating that the stock’s valuation may be elevated relative to its earnings growth rate.

Shareholding and Market Capitalisation

Godrej Agrovet’s majority shareholding remains with the promoters, providing a stable ownership structure. The company holds a Market Cap Grade of 3, reflecting its mid-tier market capitalisation within the FMCG sector. The stock’s day change was recorded at 1.22%, indicating some intraday volatility amid the broader downtrend.

Overall, the stock’s performance over the last year and recent quarters highlights a combination of subdued growth and valuation pressures, which have contributed to the current 52-week low price point. While the broader market has shown mixed signals, Godrej Agrovet’s relative underperformance remains a key feature of its recent trading history.

Summary of Key Metrics

To summarise, the stock’s 52-week low of Rs.532 contrasts sharply with its 52-week high of Rs.876.3, underscoring the significant price correction. The annual return of -25.52% contrasts with the Sensex’s positive 8.37% return over the same period. The downgrade to a Sell rating and a Mojo Score of 37.0 reflect the cautious outlook based on financial and market data.

While the company’s ROCE and valuation ratios offer some positive signals, the recent decline in PAT and low inventory turnover ratio remain areas of concern. The stock’s position below all major moving averages further emphasises the current bearish trend.

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