Aries Agro Ltd (ARIES) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Indogulf Cropsci

Madras Fertilize

Sikko Industries

Rama Phosphates

Aries Agro

Dollex Agrotech

Nova Agritech

Khaitan Chemical

Bharat Agri Fert

Zuari Agro Chem.

Balaji Phos.

Why is Aries Agro Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of 14.55% and Operating profit at 9.08% over the last 5 years

Flat results in Mar 26

PAT(Q) At Rs -4.42 cr has Fallen at -140.6% (vs previous 4Q average)
INTEREST(Q) At Rs 3.37 cr has Grown at 71.94%
OPERATING PROFIT TO INTEREST (Q) Lowest at 0.09 times

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 1.04% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -10.53% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Fertilizers)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Aries Agro for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Aries Agro

-10.19%

-0.25

40.85%

Sensex

-4.36%

-0.32

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.55%

EBIT Growth (5y)

9.08%

EBIT to Interest (avg)

2.80

Debt to EBITDA (avg)

1.22

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

1.58

Tax Ratio

29.71%

Dividend Payout Ratio

4.59%

Pledged Shares

Institutional Holding

3.15%

ROCE (avg)

17.39%

ROE (avg)

9.00%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.33

EV to EBIT

5.80

EV to EBITDA

5.10

EV to Capital Employed

1.33

EV to Sales

0.60

PEG Ratio

0.40

Dividend Yield

0.35%

ROCE (Latest)

22.85%

ROE (Latest)

12.82%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

NET SALES(9M)

At Rs 591.62 cr has Grown at 20.30%

PAT(9M)

At Rs 32.83 cr has Grown at 22.68%

ROCE(HY)

Highest at 19.99%

DEBTORS TURNOVER RATIO(HY)

Highest at 8.02 times

-14What is not working for the Company

PAT(Q)

At Rs -4.42 cr has Fallen at -140.6% (vs previous 4Q average

INTEREST(Q)

At Rs 3.37 cr has Grown at 71.94%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 0.09 times

PBDIT(Q)

Lowest at Rs 0.31 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 0.17%

PBT LESS OI(Q)

Lowest at Rs -6.10 cr.

EPS(Q)

Lowest at Rs -3.40

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Here's what is working for Aries Agro

Net Sales - Latest six months

At Rs 387.30 cr has Grown at 29.91%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Highest at 8.02 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Aries Agro

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -6.10 cr has Fallen at -139.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 15.37 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -4.42 cr has Fallen at -140.6% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 10.90 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Quarterly

At Rs 3.37 cr has Grown at 71.94%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit to Interest - Quarterly

Lowest at 0.09 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 0.31 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 0.17%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -6.10 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -3.40

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)