Agarwal Industrial Corporation Limited (AGARIND) AI Stock Analysis

• Market Cap: ₹7.55B
• Dividend Yield: 0.45%
• Average Volume (3M): 2.97K
• Price to Earnings (P/E): 95.1
• Beta (1Y): 1.29
• 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

Improving gross and net margins

Gross profit margin rose materially (from 6.26% in 2020 to 22.15% in 2025) and net margin improved (3.25% to 4.80%), indicating durable improvements in pricing, cost structure or product mix. Sustained margin expansion enhances cash generation and resiliency across business cycles.

Strengthening balance sheet metrics

Assets and equity growth plus an improving Debt-to-Equity and a stronger equity ratio provide financial flexibility to fund logistics and storage capex. A firmer balance sheet lowers refinancing risk and supports long-term investment in infrastructure-critical for the business model.

Consistent operating cash flow conversion

A 0.86 OCF-to-net-income ratio and generally stable operating cash flow point to earnings quality and reliable internal cash generation. This supports working-capital needs in trading/logistics operations and helps finance recurring investments even as FCF lags.

Negative Factors

Negative free cash flow from heavy capex

Sustained negative free cash flow from elevated capital spending erodes liquidity and may force external financing or slow returns to shareholders. For a capital-intensive logistics/storage business, prolonged negative FCF can constrain growth options and raise funding costs.

Recent revenue and EPS contraction

Material recent declines in revenue and EPS signal demand or volume pressure in core petroleum trading and logistics. Such contractions threaten scale benefits and put pressure on margins and cash flow generation unless volumes or spreads recover sustainably.

Moderate ROE and remaining leverage

ROE around mid-teens/low-20s reflects modest returns on equity while leverage remains elevated. This combination limits the firm's ability to self-fund aggressive expansion, raises sensitivity to interest costs, and increases vulnerability to demand shocks.

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 640.42, above the 50-day MA of 680.93, and below the 200-day MA of 841.92, indicating a bearish trend. The MACD of -43.46 indicates Positive momentum. The RSI at 22.49 is Positive, neither overbought nor oversold. The STOCH value of 4.71 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	₹7.55B	95.10	―	0.45%	-4.09%	-32.35%
WENDT	59 Neutral	₹13.25B	130.82	―	0.62%	―	―
INDNIPPON	58 Neutral	₹17.83B	18.47	―	1.57%	22.67%	24.50%
SALZERELEC	58 Neutral	₹11.18B	24.44	―	0.36%	21.51%	-17.75%
RIIL	52 Neutral	₹10.33B	101.05	―	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.