IFB Agro Industries Ltd. (IFBAGRO) AI Stock Analysis

• Market Cap: ₹6.74B
• Dividend Yield: N/A
• Average Volume (3M): 6.19K
• Price to Earnings (P/E): 43.5
• Beta (1Y): 1.29
• 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

Low leverage / strong balance sheet

A near-zero debt-to-equity ratio (0.01) and an 84.9% equity ratio provide durable financial flexibility, allowing the company to fund capex, absorb shocks, and pursue selective expansion without material refinancing risk. Low leverage reduces interest burden and supports stability across cycles.

Improving cash generation

A 166.4% uptick in free cash flow and an operating cash flow to net income ratio of 3.1 show markedly better cash conversion. Sustained cash generation increases optionality for reinvestment, working capital funding, or shareholder returns, enhancing resilience and funding capacity over the medium term.

Revenue and net-margin recovery

Approximately 15% revenue growth combined with a rebound to a positive net margin (~2.1%) reflects improving demand and execution. Recovery from prior negative profitability suggests product mix and distribution traction, supporting a credible pathway to sustained earnings improvement if trends continue.

Negative Factors

Thin operating margins

An EBIT margin of ~1.7% provides a narrow operating cushion. Thin margins limit the firm's ability to absorb raw‑material or excise cost increases, finance marketing or capacity expansion organically, and materially constrain long-term return generation compared with peers.

Cash-flow volatility / prior negative FCF

Reported historical cash-flow volatility and a prior year of negative free cash flow raise execution risk. Irregular cash generation can force external financing or delay investments, making it harder to consistently fund growth, sustain capex, or maintain predictable shareholder returns.

Regulatory and excise exposure

The business is structurally exposed to state-level excise regimes, licensing and route-to-market rules. Such regulatory variability in India can unpredictably alter pricing, margins, and distribution access, complicating scaling across states and increasing long-term margin and revenue volatility.

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	12.22B	10.59B	9.21B	12.28B	9.98B	6.94B
Gross Profit	3.57B	2.29B	2.80B	1.55B	3.13B	2.23B
EBITDA	1.04B	561.30M	79.80M	885.80M	908.70M	722.00M
Net Income	517.90M	223.40M	-80.80M	491.30M	585.40M	463.80M
Balance Sheet
Total Assets	9.42B	7.17B	6.36B	6.32B	5.90B	5.29B
Cash, Cash Equivalents and Short-Term Investments	1.08B	1.79B	1.40B	2.05B	1.93B	1.23B
Total Debt	891.70M	61.70M	111.80M	194.10M	223.50M	30.30M
Total Liabilities	2.87B	1.08B	833.10M	835.90M	889.20M	851.70M
Stockholders Equity	6.54B	6.09B	5.53B	5.48B	5.01B	4.44B
Cash Flow
Free Cash Flow	-1.68B	424.40M	-639.50M	182.90M	742.70M	193.10M
Operating Cash Flow	-118.00M	684.40M	-316.00M	325.00M	1.05B	362.90M
Investing Cash Flow	-2.40B	124.10M	-247.00M	-167.60M	-658.50M	465.20M
Financing Cash Flow	815.60M	-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 809.80, above the 50-day MA of 1091.59, and above the 200-day MA of 1012.41, indicating a bearish trend. The MACD of -99.78 indicates Negative momentum. The RSI at 29.48 is Positive, neither overbought nor oversold. The STOCH value of 14.42 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	₹22.80B	16.42	―	0.72%	―	―
TI	66 Neutral	₹106.82B	-24.49	―	0.21%	3.35%	56.08%
ASALCBR	64 Neutral	₹13.69B	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	₹6.74B	43.53	―	―	23.11%	1930.97%
GLOBUSSPR	56 Neutral	₹25.55B	25.16	―	0.28%	2.36%	-26.16%
RKDL	42 Neutral	₹446.64M	724.38	―	―	4.30%	-40.22%