Stock Performance and Market Context
The stock of White Organic Agro Ltd (Stock ID: 625632) has been on a downward trajectory, falling by 3.96% on the day and underperforming its sector by 1.58%. This decline follows a two-day losing streak during which the stock has shed 2.96% in value. The current price of Rs.3.8 represents a sharp drop from its 52-week high of Rs.7.04, reflecting a year-long depreciation of 43.69%. This contrasts starkly with the broader Sensex index, which has gained 8.10% over the same period.
The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. Meanwhile, the Sensex itself has experienced a modest decline, closing 0.57% lower at 84,474.03 points, after opening down by 183.12 points. Despite this, the Sensex remains close to its 52-week high, just 1.99% shy of 86,159.02, and its 50-day moving average remains above the 200-day moving average, indicating a generally positive market trend that White Organic Agro Ltd has not mirrored.
Financial Metrics and Fundamental Assessment
White Organic Agro Ltd’s financial health continues to raise concerns. The company’s Mojo Score stands at 17.0, with a Mojo Grade of Strong Sell, an upgrade from a previous Sell rating as of 6 March 2024. This grading reflects deteriorating fundamentals and heightened risk factors. The company’s market capitalisation grade is low at 4, underscoring its relatively small size and limited market presence.
One of the key indicators of financial strain is the company’s weak ability to service debt, with an average EBIT to Interest ratio of just 0.85. This suggests that earnings before interest and tax are insufficient to comfortably cover interest expenses, raising concerns about financial sustainability. Additionally, the average Return on Equity (ROE) is 7.37%, indicating modest profitability relative to shareholders’ funds.
Operating cash flow for the fiscal year is notably negative, with the latest annual figure at Rs. -4.47 crores, the lowest recorded. Non-operating income for the most recent quarter accounted for 125.23% of Profit Before Tax (PBT), highlighting reliance on non-core income sources rather than operational profitability. The company’s EBITDA remains negative, further emphasising the challenges in generating earnings from core activities.
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Valuation and Risk Considerations
The stock’s valuation metrics indicate elevated risk. Despite a 115% increase in profits over the past year, the company’s price-to-earnings-growth (PEG) ratio remains at zero, reflecting a disconnect between earnings growth and market valuation. This disparity may be attributed to the company’s ongoing financial weaknesses and market scepticism.
Over the last three years, White Organic Agro Ltd has consistently underperformed the BSE500 benchmark, compounding investor concerns. The stock’s negative returns of 43.69% in the past year further highlight its relative underperformance within the broader market context.
Shareholding Pattern and Market Position
The majority of White Organic Agro Ltd’s shares are held by non-institutional investors, which may contribute to lower liquidity and higher volatility. The company operates within the Other Agricultural Products sector, a segment that has faced varied pressures in recent times, though the broader market has shown resilience.
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Summary of Current Situation
White Organic Agro Ltd’s recent fall to Rs.3.8 marks a significant milestone in a prolonged period of decline. The stock’s performance is characterised by sustained losses, weak financial ratios, and a challenging operating environment. While the broader market and sector indices have shown relative strength, White Organic Agro Ltd’s fundamentals and valuation metrics continue to reflect cautionary signals.
Investors and market participants will note the company’s negative operating cash flows, reliance on non-operating income, and limited profitability as key factors influencing the stock’s downward movement. The stock’s position below all major moving averages further underscores the prevailing bearish sentiment.
As of 8 January 2026, White Organic Agro Ltd remains classified with a Strong Sell Mojo Grade, reflecting the comprehensive assessment of its financial and market standing.
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