Stock Price Movement and Market Context
On 9 Jan 2026, Godrej Agrovet’s share price touched Rs.555.95, the lowest level in the past year, reflecting a continued downward trend. Despite this, the stock outperformed its sector by 0.55% on the day, though it remains below all major moving averages – including the 5-day, 20-day, 50-day, 100-day, and 200-day averages – signalling sustained bearish momentum.
The broader market context shows the Sensex opened lower at 84,022.09, down 158.87 points (-0.19%), and was trading marginally down by 0.04% at 84,147.90 during the same period. The Sensex remains 2.39% below its 52-week high of 86,159.02, with mid-cap stocks leading gains modestly. However, Godrej Agrovet’s performance contrasts with the overall market, as it has underperformed the Sensex by a wide margin over the past year.
Long-Term and Recent Performance Analysis
Over the last 12 months, Godrej Agrovet’s stock has declined by 23.94%, while the Sensex has gained 8.40%. This underperformance extends over longer periods as well, with the stock lagging behind the BSE500 index across one year, three years, and the recent three-month timeframe. The stock’s 52-week high was Rs.876.30, highlighting the extent of the recent price erosion.
Financially, the company’s net sales have grown at a modest compound annual growth rate (CAGR) of 7.86% over the past five years, with operating profit increasing at 8.43% annually. These growth rates are considered subdued relative to sector peers and broader FMCG industry benchmarks. The company’s quarterly profit after tax (PAT) stood at Rs.92.59 crore, reflecting a decline of 17.6% compared to the previous quarter, indicating pressure on profitability in the near term.
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Operational Metrics and Dividend Trends
Godrej Agrovet’s inventory turnover ratio for the half-year period is notably low at 0.64 times, suggesting slower movement of stock relative to sales. This figure is among the lowest in its peer group, which may impact working capital efficiency. The dividend payout ratio (DPR) for the year is also at a low 42.08%, reflecting a conservative approach to shareholder returns amid earnings pressures.
Despite these challenges, the company maintains a return on capital employed (ROCE) of 15.7%, which is relatively attractive within the FMCG sector. The enterprise value to capital employed ratio stands at 3.3, indicating a valuation discount compared to historical averages of its peers. The price-to-earnings-to-growth (PEG) ratio is 2.5, signalling that the stock’s valuation is somewhat stretched relative to its earnings growth rate of 9.8% over the past year.
Shareholding and Market Sentiment
The majority ownership of Godrej Agrovet remains with promoters, which typically provides stability in governance and strategic direction. However, the current market sentiment, as reflected in the Mojo Score of 37.0 and a Mojo Grade of Sell (downgraded from Hold on 13 Oct 2025), indicates caution among market participants. The company’s market capitalisation grade is rated 3, suggesting a mid-tier valuation within its sector.
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Summary of Key Performance Indicators
To summarise, Godrej Agrovet’s stock performance and financial metrics present a mixed picture. The stock’s decline to Rs.555.95 marks a significant low point within the last 52 weeks, reflecting subdued growth and profitability pressures. While the company’s ROCE and valuation metrics suggest some underlying strength, the recent earnings decline and low inventory turnover ratio highlight areas of concern.
The stock’s underperformance relative to the Sensex and BSE500 indices over multiple time horizons underscores the challenges faced in delivering consistent shareholder returns. The downgrade in Mojo Grade to Sell further emphasises the cautious stance adopted by market analysts based on current fundamentals and price action.
Market and Sector Comparison
Within the FMCG sector, Godrej Agrovet’s performance contrasts with broader market trends where mid-cap stocks have shown modest gains. The Sensex’s position near its 52-week high and its moving average dynamics indicate a generally positive market environment, which Godrej Agrovet has not fully capitalised on. This divergence highlights the importance of company-specific factors in influencing stock price movements.
Valuation and Profitability Metrics
Despite the recent price weakness, the company’s valuation remains discounted relative to peers, with an enterprise value to capital employed ratio of 3.3. The PEG ratio of 2.5, however, suggests that the market is pricing in moderate growth expectations relative to earnings expansion. Profit growth of 9.8% over the past year contrasts with the stock’s negative return, indicating a disconnect between earnings performance and market valuation.
Shareholder Structure and Governance
Promoter ownership continues to dominate, which may provide strategic continuity. However, the market’s response as reflected in the Mojo Score and grade indicates that investors are weighing the company’s recent financial trends and price performance carefully.
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