Agarwal Industrial Corporation Limited (AGARIND) AI Stock Analysis

• Market Cap: ₹6.17B
• Dividend Yield: 0.45%
• Average Volume (3M): 2.97K
• Price to Earnings (P/E): 95.1
• Beta (1Y): 1.37
• 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: ₹437.00 ▼(-38.88% 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 improvement

Agarind's gross profit margin expanded markedly (6.26% to 22.15% from 2020–2025) alongside rising EBIT margins. Sustained margin improvement suggests better procurement, pricing power or mix, which supports durable cash earnings, operational resilience and reinvestment capacity across cycles.

Improving balance sheet

The company shows significant asset and equity growth with improved leverage metrics and a stronger equity base. This improved balance sheet enhances funding flexibility for logistics/storage capex, reduces insolvency risk, and supports multi-year expansion of distribution and storage operations.

Solid operating cash conversion

Consistently positive operating cash flow and an OCF/Net Income ratio of 0.86 indicate high cash conversion quality. Durable operating cash generation underpins working capital for trading and logistics, funds recurring operations and supports long-term asset-backed services without immediate reliance on equity financing.

Negative Factors

Negative free cash flow

Persistent negative free cash flow from heavy capex on storage and transport assets creates a structural cash drain until utilization ramps. This can necessitate external funding, increase financing costs, and constrain returns or further investment flexibility over the medium term.

Moderate ROE and remaining leverage

A moderate ROE (~18.4%) limits shareholder return generation relative to higher‑return peers, while remaining elevated leverage sustains refinancing and solvency risk. Together these factors reduce financial optionality and amplify earnings volatility during industry slowdowns.

Recent revenue and EPS contraction

Recent reported revenue decline (~-12%) and sharp EPS contraction (~-52%) suggest near-term volume or margin pressure. If these trends persist, they could signal weakening demand in core end markets or execution issues, undermining sustainable top-line growth and cash generation over months.

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

AGARIND primarily makes money through (1) trading/marketing margins earned from procuring petroleum products (notably bitumen and other hydrocarbon products) and selling them to customers such as infrastructure and road-construction contractors, industrial users, and other bulk buyers, and (2) service income from logistics and infrastructure linked to petroleum handling—such as transportation (including tanker/vehicle logistics) and storage/handling at its facilities—charged via freight, handling, or storage fees. Its earnings are influenced by sales volumes, the spread between procurement and selling prices (and inventory timing), and utilization of its logistics and storage assets; specific material partnerships or customer concentration details are null.

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	22.09B	24.09B	21.25B	20.15B	15.98B	9.04B
Gross Profit	4.82B	5.34B	2.12B	1.62B	1.39B	895.22M
EBITDA	1.83B	2.06B	1.78B	1.45B	1.08B	725.91M
Net Income	832.61M	1.16B	1.09B	922.58M	636.89M	405.33M
Balance Sheet
Total Assets	13.44B	13.45B	11.20B	7.50B	5.43B	3.95B
Cash, Cash Equivalents and Short-Term Investments	848.21M	868.33M	980.13M	591.31M	624.66M	382.57M
Total Debt	4.17B	4.35B	3.61B	1.58B	1.71B	1.50B
Total Liabilities	6.88B	7.18B	6.09B	3.46B	2.49B	1.99B
Stockholders Equity	6.56B	6.27B	5.11B	4.04B	2.95B	1.96B
Cash Flow
Free Cash Flow	333.10M	-650.12M	-1.58B	79.70M	-8.60M	28.70M
Operating Cash Flow	942.66M	998.41M	1.12B	1.57B	646.82M	494.84M
Investing Cash Flow	-613.21M	-1.57B	-2.76B	-1.58B	-696.48M	-436.96M
Financing Cash Flow	-390.46M	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 485.69, above the 50-day MA of 609.47, and below the 200-day MA of 805.60, indicating a bearish trend. The MACD of -59.68 indicates Positive momentum. The RSI at 15.58 is Positive, neither overbought nor oversold. The STOCH value of 7.50 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	₹6.17B	95.10	―	0.45%	-4.09%	-32.35%
WENDT	59 Neutral	₹13.47B	130.82	―	0.62%	―	―
INDNIPPON	58 Neutral	₹16.67B	18.47	―	1.57%	22.67%	24.50%
SALZERELEC	58 Neutral	₹9.73B	24.44	―	0.36%	21.51%	-17.75%
RIIL	51 Neutral	₹10.81B	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.