Agarwal Industrial Corporation Limited (AGARIND) AI Stock Analysis

• Market Cap: ₹7.92B
• Dividend Yield: 0.45%
• Average Volume (3M): 2.97K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 1.27
• Revenue Growth: -4.09%
• EPS Growth: -32.35%
• Country: IN
• Employees: 129
• Sector: Industrials
• Sector Strength: 72
• Industry: Chemicals - Specialty
• EPS (TTM): 1.87
• Shares Outstanding: 14,957,789
• 10 Day Avg. Volume: 997
• 30 Day Avg. Volume: 2,971
• PEG Ratio: 2.17
• Price to Book (P/B): 2.37
• Price to Sales (P/S): 0.62
• P/FCF Ratio: -22.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹592.00 ▼(-17.20% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is primarily supported by strong multi-year financial performance and margin improvement, but is held back by negative free cash flow from heavy capex. Technicals are the largest near-term drag due to a pronounced downtrend and weak momentum despite oversold readings, while valuation is reasonable but not meaningfully boosted by the low dividend yield.

Positive Factors

Margin expansion

The company has materially expanded gross and net margins over several years (gross 6.26%→22.15%, net 3.25%→4.80%), indicating stronger pricing, product mix or cost control. Wider margins provide durable earnings resilience across cycles and support long‑term profitability.

Improving leverage profile

Assets and equity have grown and Debt-to-Equity has improved, reflecting deliberate deleveraging or controlled borrowing as the business scales. A stronger leverage profile increases financial flexibility for capex, contracts and downturns over the coming months.

Stable operating cash conversion

Consistently positive operating cash flow and a high OCF-to-net-income ratio (~0.86) show the core trading and logistics operations convert profits into cash efficiently. This underpins ability to fund working capital and service obligations without immediate external funding.

Negative Factors

Negative free cash flow from heavy capex

Sustained negative free cash flow driven by significant capex reduces financial flexibility and may necessitate external funding or slower organic growth. Over a 2–6 month horizon, ongoing capex can pressure liquidity and constrain discretionary investments.

Recent top-line and EPS weakness

Material negative revenue and EPS growth metrics indicate recent demand or execution challenges. Declining top line and profits can erode operating leverage and make margin maintenance harder, creating a headwind to durable earnings recovery absent structural demand improvement.

Rising non-cash charges pressuring EBITDA

Higher depreciation/amortization that compresses EBITDA relative to EBIT signals recent asset additions or accounting charges. This raises fixed non-cash overhead that can limit reported EBITDA expansion and reduce cash cushion available for reinvestment in the medium term.

Agarwal Industrial Corporation Limited Business Overview & Revenue Model

Company Description

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, bituminous felt, bituminous expansion jointing boards, bitumen coats and paints, bitumen insulation materials, bitubonds, bituplasts, bituminous blacks, bitukotes, bitupremier, and cable compounds. 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.

How the Company Makes Money

Agarwal Industrial Corporation Limited generates revenue through multiple streams primarily focused on its core businesses. The company earns money from the manufacturing and sale of steel products, which includes a range of steel grades and forms used in construction and industrial applications. Additionally, AGARIND’s logistics division contributes significantly to its revenue by providing transportation and supply chain management services, optimizing the movement of goods for various industries. Real estate development projects also serve as a revenue source, where the company invests in and sells or leases commercial and residential properties. Strategic partnerships with suppliers and distributors further enhance AGARIND's market reach and operational efficiency, driving consistent earnings growth.

Agarwal Industrial Corporation Limited Financial Statement Overview

Summary

Strong revenue and profitability growth with meaningfully improving gross and net margins, supported by stable asset/equity growth. Offsetting risks include negative recent free cash flow from heavy capex and only moderate ROE, keeping the overall financial profile solid but not top-tier.

Income Statement

Agarwal Industrial Corporation shows strong growth in revenue and profitability. The revenue has steadily increased from 2020 to 2025, driven by rising Gross and EBIT margins. The Gross Profit Margin increased significantly from 6.26% in 2020 to 22.15% in 2025, and the Net Profit Margin improved from 3.25% to 4.80% over the same period. However, EBITDA margin decreased in 2025 as compared to EBIT margin, indicating higher depreciation and amortization costs.

Balance Sheet

The company's balance sheet reflects a stable growth trajectory, with assets and equity increasing significantly over the years. The Debt-to-Equity ratio improved, indicating better leverage management, though it remains relatively high. The Equity Ratio improved from 52.50% in 2020 to 46.65% in 2025, demonstrating a solid equity base. However, the Return on Equity was moderate at 18.44% in 2025, showing room for improvement in generating returns from equity.

Cash Flow

Operating Cash Flow has been positive and generally stable, but Free Cash Flow has been negative in recent years due to significant capital expenditures. The Operating Cash Flow to Net Income Ratio was 0.86 in 2025, indicating efficient cash conversion from profits. Nonetheless, the Free Cash Flow to Net Income Ratio is negative, suggesting a need for better management of capital expenditures and cash generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	22.90B	24.09B	21.25B	20.15B	15.98B	9.04B
Gross Profit	5.01B	5.34B	2.12B	1.62B	1.39B	895.22M
EBITDA	1.87B	2.06B	1.78B	1.45B	1.08B	725.91M
Net Income	897.15M	1.16B	1.09B	922.58M	636.89M	405.33M
Balance Sheet
Total Assets	0.00	13.45B	11.20B	7.50B	5.43B	3.95B
Cash, Cash Equivalents and Short-Term Investments	868.33M	868.33M	980.13M	591.31M	624.66M	382.57M
Total Debt	0.00	4.35B	3.61B	1.58B	1.71B	1.50B
Total Liabilities	-6.27B	7.18B	6.09B	3.46B	2.49B	1.99B
Stockholders Equity	6.27B	6.27B	5.11B	4.04B	2.95B	1.96B
Cash Flow
Free Cash Flow	0.00	-650.12M	-1.58B	79.70M	-8.60M	28.70M
Operating Cash Flow	0.00	998.41M	1.12B	1.57B	646.82M	494.84M
Investing Cash Flow	0.00	-1.57B	-2.76B	-1.58B	-696.48M	-436.96M
Financing Cash Flow	0.00	395.01M	1.78B	-154.16M	190.07M	213.49M

Agarwal Industrial Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 714.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AGARIND, the sentiment is Negative. The current price of 714.95 is above the 20-day moving average (MA) of 650.73, above the 50-day MA of 684.30, and below the 200-day MA of 844.26, indicating a bearish trend. The MACD of -40.90 indicates Positive momentum. The RSI at 25.17 is Positive, neither overbought nor oversold. The STOCH value of 3.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AGARIND.

Agarwal Industrial Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AGARIND	62 Neutral	₹7.92B	14.13	―	0.45%	-4.09%	-32.35%
WENDT	59 Neutral	₹13.46B	61.73	―	0.62%	―	―
INDNIPPON	58 Neutral	₹18.34B	18.98	―	1.57%	22.67%	24.50%
SALZERELEC	58 Neutral	₹11.18B	22.02	―	0.36%	21.51%	-17.75%
RIIL	52 Neutral	₹10.33B	85.93	―	0.42%	―	―

Agarwal Industrial Corporation Limited Corporate Events

Agarwal Industrial Files SEBI Dematerialisation Compliance Certificate for December Quarter

Agarwal Industrial Corporation Limited has submitted a compliance certificate to the stock exchanges for the quarter ended 31 December 2025, in line with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The company’s registrar and share transfer agent, MUFG Intime India Private Limited, confirmed that all securities lodged for dematerialisation during the quarter were duly verified, accepted or rejected as appropriate, listed on the relevant stock exchanges, and that corresponding physical certificates were cancelled and the depositories recorded as the registered owners within prescribed timelines, underscoring the company’s adherence to regulatory and depository norms for its shareholders.