As of the latest market close, IFB Agro Industries is trading at ₹1,419.40, down from the previous close of ₹1,497.45. The stock’s 52-week trading range spans from ₹436.95 to ₹1,639.25, indicating significant price movement over the past year. Despite a day change of -5.21%, the company’s valuation metrics suggest a more favourable price positioning compared to its recent past and industry peers.
The P/E ratio currently stands at 25.67, a figure that has been reassessed to reflect a very attractive valuation level. This contrasts with some peers in the beverages industry, where companies like Monika Alcobev report a P/E of 28.26, categorised as very expensive, while others such as Jagatjit Industries and Cupid Breweries are classified as risky due to loss-making operations and lack of meaningful P/E data. IFB Agro’s P/E ratio, therefore, positions it favourably within its sector, suggesting a more balanced valuation relative to earnings.
Complementing the P/E ratio, the price-to-book value (P/BV) for IFB Agro Industries is recorded at 2.03. This metric indicates the market’s valuation of the company’s net assets and is consistent with a valuation considered very attractive in the current market context. When compared to the broader beverage sector, where several companies face valuation challenges or elevated multiples, IFB Agro’s P/BV ratio underscores a more reasonable price level relative to its book value.
Other enterprise value (EV) based multiples further illustrate the company’s valuation landscape. The EV to EBIT ratio is at 22.39, while EV to EBITDA is 16.16, both metrics reflecting the company’s operational earnings relative to its enterprise value. These figures are indicative of a valuation that is neither stretched nor undervalued but rather aligned with a very attractive assessment in the current market environment.
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IFB Agro Industries’ PEG ratio, a measure that relates the P/E ratio to earnings growth, is notably low at 0.01, which may indicate that the stock’s price is modest relative to its expected earnings growth. This metric, combined with a return on capital employed (ROCE) of 9.20% and return on equity (ROE) of 7.91%, provides a nuanced picture of the company’s efficiency in generating returns from its capital base and shareholder equity.
Examining the company’s returns over various time horizons reveals a strong performance relative to the Sensex benchmark. Over the past week, IFB Agro Industries recorded a stock return of -11.81%, contrasting with the Sensex’s 0.85% gain. However, over longer periods, the stock has outpaced the benchmark significantly: a 1-month return of 47.31% versus Sensex’s 1.47%, year-to-date return of 143.07% compared to 9.02%, and a 1-year return of 148.47% against 9.81%. Even over 3, 5, and 10-year periods, IFB Agro’s returns of 146.96%, 296.20%, and 266.11% respectively, surpass the Sensex’s 38.15%, 95.38%, and 229.64% returns. This performance contextualises the valuation shift, suggesting that the market assessment is influenced by sustained stock appreciation.
Despite the recent downward movement in the stock price, the valuation parameters indicate a shift towards a more attractive price level, especially when viewed against the backdrop of the company’s robust historical returns and operational metrics. This shift in market assessment may reflect evolving investor sentiment and a reassessment of the company’s growth prospects within the beverages sector.
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In comparison to its peers, IFB Agro Industries stands out for its valuation stability and operational returns. Several competitors in the beverages sector are currently classified as risky or very expensive, with some companies reporting loss-making status and negative EV to EBITDA ratios. This contrast highlights IFB Agro’s relative strength in maintaining a valuation that is considered very attractive by current analytical standards.
Investors analysing IFB Agro Industries should consider the interplay between valuation metrics and the company’s historical performance. The P/E and P/BV ratios suggest a price level that is more accessible relative to earnings and book value than many peers, while the EV multiples and return ratios provide additional context on operational efficiency and capital utilisation.
Overall, the recent revision in the company’s evaluation metrics points to a market reassessment that favours IFB Agro Industries’ price attractiveness. This shift may influence investor decisions as they weigh the company’s valuation against its growth trajectory and sector dynamics.
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