NSEI:AGARIND

Stock Analysis Report

Executive Summary

Agarwal Industrial Corporation Limited primarily manufactures and trades in petrochemicals in India.

Rewards

Trading at 70.7% below its fair value

Earnings are forecast to grow 19.73% per year

Earnings grew by 95.9% over the past year

Risk Analysis

Does not have a meaningful market cap (₹468M)

Has a high level of debt

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Very undervalued with solid track record.


Similar Companies

Share Price & News

How has Agarwal Industrial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AGARIND's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.5%

AGARIND

4.7%

IN Chemicals

1.4%

IN Market


1 Year Return

-71.5%

AGARIND

-14.1%

IN Chemicals

-30.7%

IN Market

Return vs Industry: AGARIND underperformed the Indian Chemicals industry which returned -12.5% over the past year.

Return vs Market: AGARIND underperformed the Indian Market which returned -29.6% over the past year.


Shareholder returns

AGARINDIndustryMarket
7 Day-7.5%4.7%1.4%
30 Day-38.7%-21.2%-24.8%
90 Day-61.1%-19.1%-30.6%
1 Year-71.1%-71.5%-10.6%-14.1%-29.3%-30.7%
3 Year-92.5%-92.6%11.7%4.9%-18.1%-22.6%
5 Year-58.3%-60.2%65.2%50.9%-7.2%-12.2%

Price Volatility Vs. Market

How volatile is Agarwal Industrial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Agarwal Industrial undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AGARIND (₹45.6) is trading below our estimate of fair value (₹155.74)

Significantly Below Fair Value: AGARIND is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AGARIND is good value based on its PE Ratio (2.3x) compared to the Chemicals industry average (7.6x).

PE vs Market: AGARIND is good value based on its PE Ratio (2.3x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: AGARIND is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: AGARIND is good value based on its PB Ratio (0.3x) compared to the IN Chemicals industry average (0.8x).


Next Steps

Future Growth

How is Agarwal Industrial forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

19.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AGARIND's forecast earnings growth (19.7% per year) is above the savings rate (6.5%).

Earnings vs Market: AGARIND's earnings (19.7% per year) are forecast to grow faster than the Indian market (19.5% per year).

High Growth Earnings: AGARIND's earnings are forecast to grow, but not significantly.

Revenue vs Market: AGARIND's revenue (13.6% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: AGARIND's revenue (13.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AGARIND's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Agarwal Industrial performed over the past 5 years?

24.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AGARIND has high quality earnings.

Growing Profit Margin: AGARIND's current net profit margins (3%) are higher than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: AGARIND's earnings have grown significantly by 24.8% per year over the past 5 years.

Accelerating Growth: AGARIND's earnings growth over the past year (95.9%) exceeds its 5-year average (24.8% per year).

Earnings vs Industry: AGARIND earnings growth over the past year (95.9%) exceeded the Chemicals industry 10%.


Return on Equity

High ROE: AGARIND's Return on Equity (14.3%) is considered low.


Next Steps

Financial Health

How is Agarwal Industrial's financial position?


Financial Position Analysis

Short Term Liabilities: AGARIND's short term assets (₹1.7B) exceed its short term liabilities (₹887.9M).

Long Term Liabilities: AGARIND's short term assets (₹1.7B) exceed its long term liabilities (₹83.2M).


Debt to Equity History and Analysis

Debt Level: AGARIND's debt to equity ratio (55.7%) is considered high.

Reducing Debt: AGARIND's debt to equity ratio has reduced from 90.7% to 55.7% over the past 5 years.

Debt Coverage: AGARIND's debt is well covered by operating cash flow (37.9%).

Interest Coverage: AGARIND's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet

Inventory Level: AGARIND has a high level of physical assets or inventory.

Debt Coverage by Assets: AGARIND's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

What is Agarwal Industrial's current dividend yield, its reliability and sustainability?

3.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AGARIND's dividend (3.95%) is higher than the bottom 25% of dividend payers in the Indian market (0.94%).

High Dividend: AGARIND's dividend (3.95%) is low compared to the top 25% of dividend payers in the Indian market (4.06%).


Stability and Growth of Payments

Stable Dividend: AGARIND has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: AGARIND's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (9.1%), AGARIND's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

₹4m

CEO Compensation


CEO

Jaiprakash Agarwal (61yo)

no data

Tenure

₹4,200,000

Compensation

Mr. Jaiprakash Agarwal serves as a Managing Director and Executive Director of Agarwal Industrial Corporation Ltd. Mr. Agarwal serves as a Director at Agarwal Translink P. Ltd. He is a Commerce graduate. 


CEO Compensation Analysis

Compensation vs Market: Jaiprakash's total compensation ($USD55.78K) is about average for companies of similar size in the Indian market ($USD48.22K).

Compensation vs Earnings: Jaiprakash's compensation has increased by more than 20% in the past year.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Agarwal Industrial Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Agarwal Industrial Corporation Limited
  • Ticker: AGARIND
  • Exchange: NSEI
  • Founded: 1995
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: ₹467.799m
  • Shares outstanding: 10.26m
  • Website: https://www.aicltd.in

Location

  • Agarwal Industrial Corporation Limited
  • Eastern Court
  • Unit No. 201-202
  • Mumbai
  • Maharashtra
  • 400071
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
531921BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2007
AGARINDNSEI (National Stock Exchange of India)YesEquity SharesININRMay 2007

Biography

Agarwal Industrial Corporation Limited primarily manufactures and trades in petrochemicals in India. The company operates through Petrochemical Business, Transportation, and Sale of Power segments. Its products include paving grade bitumen, industrial grade bitumen, viscosity grade bitumen, bitumen emulsions for road construction, crumb rubber modified bitumen, polymer modified bitumen, byproducts/waterproofing materials, bituminious felts, bituminous expansion jointing boards, bitumen coats and paints, bitumen insulation materials, bitubonds, bituplasts, bituminous blacks, bitukotes, bitupremier, cable compounds, etc. The company also transports bulk bitumen and bulk LPG; and generates power through windmills, as well as imports and stores bitumen. The company was formerly known as Bombay Baroda Roadways (India) Limited and changed its name to Agarwal Industrial Corporation Limited in March 2008. Agarwal Industrial Corporation Limited was incorporated in 1995 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 13:06
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.