IFB Agro Industries Ltd. (IFBAGRO) AI Stock Analysis

• Market Cap: ₹7.08B
• Dividend Yield: N/A
• Average Volume (3M): 6.19K
• Price to Earnings (P/E): 43.5
• Beta (1Y): 1.32
• Revenue Growth: 23.11%
• EPS Growth: 1930.97%
• Country: IN
• Employees: 426
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 7.79
• Shares Outstanding: 9,367,111
• 10 Day Avg. Volume: 4,723
• 30 Day Avg. Volume: 6,192
• PEG Ratio: -0.05
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 10.63
• 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: 58 Neutral
• Price Target: ₹760.00 ▼(-53.47% Downside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is primarily supported by improving fundamentals and a very strong, low-leverage balance sheet, but it is pulled down by pronounced bearish technical momentum (price below all major DMAs, negative MACD) and a high P/E that reduces valuation cushion.

Positive Factors

Balance Sheet Strength

Extremely low leverage and a high equity ratio materially lower financial risk, enabling IFB Agro to fund working capital, invest in capacity, or withstand state-level regulatory shocks without resorting to costly borrowing. This balance-sheet strength supports durable strategic flexibility.

Improved Cash Generation

A large reported jump in free cash flow and a strong operating cash flow to net income ratio indicate improved cash conversion. Sustained cash generation reduces dependence on external finance, enables organic capex and brand investments, and bolsters resilience through seasonal or regulatory cycles.

Revenue and Margin Recovery

Resilient topline growth and a return to positive net margin, along with a healthy gross margin, imply recovering demand, better pricing or cost control. This trend supports longer-term brand traction in alcoholic beverages and processed foods and creates a pathway for incremental margin expansion if efficiencies continue.

Negative Factors

Low Operating Profitability

An EBIT margin near 1.7% leaves narrow operating profitability, limiting the company's ability to absorb excise hikes, input-cost inflation, or invest in marketing and distribution without eroding net income. Persistently low operating margins constrain sustainable ROE expansion and strategic reinvestment.

Cash Flow Volatility

Documented free cash flow volatility and at least one prior negative FCF year create uncertainty around funding predictability. This hinders planning for capex, working capital and shareholder returns, and can force intermittent external financing that would erode the low-leverage advantage.

Regulatory / Route-to-Market Risk

The business is structurally exposed to state-level excise regimes, licensing and distributor/state procurement systems, which materially affect price realization and volumes. These regulatory and route-to-market constraints create persistent margin and volume volatility and complicate scalable, predictable national expansion.

IFB Agro Industries Ltd. Business Overview & Revenue Model

Company Description

IFB Agro Industries Limited engages in the manufacture and distribution of alcoholic beverages and processed marine foods in India. It operates in two segments, Spirit, Liquor, Spirituous Beverages and Allied Products; and Marine Products. The company offers extra neutral alcohol for use in potable liquor, homeopathic medicine etc.; bottles country and India made Indian liquor; and marine food products, including prawn, fish, etc., as well as sells feed. It also provides food grade carbon dioxide; dry ice; and feed nutrition boosters. In addition, the company operates aqua shops; and processes and exports marine products to Belgium, France, Germany, Myanmar, Russia, Italy, Thailand, Japan, Vietnam, the United States, Canada, and the Middle East, as well as offers ready to cook and ready to fry seafood products to restaurants, hotels, and caterers. IFB Agro Industries Limited was incorporated in 1982 and is based in Kolkata, India.

How the Company Makes Money

IFB Agro Industries generates revenue through several key streams. The primary source of income comes from the sale of seafood products, particularly frozen shrimp and fish, which are exported to various countries, contributing significantly to its foreign exchange earnings. Additionally, the company earns revenue from its animal feed division, which supplies feed for aquaculture and livestock, targeting both local farmers and larger agricultural operations. Strategic partnerships with distributors and exporters enhance its reach in international markets, while investments in quality and sustainability help maintain competitive pricing and market share. Seasonal demand fluctuations and regulatory environments in the seafood industry also play a crucial role in influencing the company's earnings.

IFB Agro Industries Ltd. Financial Statement Overview

Summary

Financials show a clear recovery: revenue grew ~15% and net margin improved to ~2.1%. The balance sheet is a major strength with very low leverage (debt-to-equity ~0.01) and a high equity ratio (~84.9%), while cash flow has improved sharply (FCF growth ~166%) but with some historical volatility and still-low EBIT margin (~1.7%).

Income Statement

IFB Agro Industries Ltd. has demonstrated a strong recovery in its financial performance. The gross profit margin for the latest year stands at approximately 21.6%, with a significant improvement in net profit margin to 2.1% from a previous negative position. Revenue growth rate has been robust at 15.0% reflecting a positive trajectory. However, the EBIT margin is still relatively low at 1.7%, indicating room for improvement in operational efficiency.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio of 0.01, indicating minimal leverage and financial risk. The return on equity is modest at 3.7%, showing moderate profitability from the shareholders' perspective. The equity ratio is high at 84.9%, highlighting a solid equity base relative to assets, which enhances financial stability.

Cash Flow

Cash flow analysis reveals a positive turnaround with a free cash flow growth rate of 166.4%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is healthy at 3.1, suggesting good cash conversion from profit. However, historical volatility in cash flows and a previous year of negative free cash flow indicate some risk in cash flow stability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.87B	10.59B	9.21B	12.28B	9.98B	6.94B
Gross Profit	3.07B	2.29B	2.80B	1.55B	3.13B	2.23B
EBITDA	716.70M	561.30M	79.80M	885.80M	908.70M	722.00M
Net Income	311.80M	223.40M	-80.80M	491.30M	585.40M	463.80M
Balance Sheet
Total Assets	0.00	7.17B	6.36B	6.32B	5.90B	5.29B
Cash, Cash Equivalents and Short-Term Investments	1.80B	1.79B	1.40B	2.05B	1.93B	1.23B
Total Debt	0.00	61.70M	111.80M	194.10M	223.50M	30.30M
Total Liabilities	-6.09B	1.08B	833.10M	835.90M	889.20M	851.70M
Stockholders Equity	6.09B	6.09B	5.53B	5.48B	5.01B	4.44B
Cash Flow
Free Cash Flow	0.00	424.40M	-639.50M	182.90M	742.70M	193.10M
Operating Cash Flow	0.00	684.40M	-316.00M	325.00M	1.05B	362.90M
Investing Cash Flow	0.00	124.10M	-247.00M	-167.60M	-658.50M	465.20M
Financing Cash Flow	0.00	-51.20M	-66.30M	-70.30M	193.40M	-2.00M

IFB Agro Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1633.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IFBAGRO, the sentiment is Negative. The current price of 1633.3 is above the 20-day moving average (MA) of 858.55, above the 50-day MA of 1162.94, and above the 200-day MA of 1009.50, indicating a bearish trend. The MACD of -106.76 indicates Negative momentum. The RSI at 27.15 is Positive, neither overbought nor oversold. The STOCH value of 17.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:IFBAGRO.

IFB Agro Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMBREW	75 Outperform	₹22.72B	16.42	―	0.72%	―	―
TI	66 Neutral	₹112.22B	-24.49	―	0.21%	3.35%	56.08%
ASALCBR	66 Neutral	₹14.25B	16.60	―	0.21%	16.02%	48.63%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
IFBAGRO	58 Neutral	₹7.08B	43.53	―	―	23.11%	1930.97%
GLOBUSSPR	56 Neutral	₹24.88B	25.16	―	0.28%	2.36%	-26.16%
RKDL	42 Neutral	₹451.68M	724.38	―	―	4.30%	-40.22%