Altman Z″
Needs current assets and current liabilities.
FARMPEACE · Agriculture · INE0W2E01010
Analyst mean 0.00 · 0 analysts · 0% bullishThis company listed within the last twelve months, so its prospectus is still the primary source. The figures below were extracted from the DRHP and RHP before listing and scored then, and they are shown here as they stand in the IPO record rather than restated.
Each flag is a fact read in the filing, shown with the context that makes it meaningful.
Stated objects, as worded in the offer document. Deployment against them is tracked separately.
Claims made in the offer document, to be read against what the company has reported since.
Farm Peace Limited operates an integrated contract farming model centered on processed-grade potato varieties, including Santana, Frysona, Lady Rosetta, Chipsona, and Innovator, in Gujarat, India. The company engages contract farmers through seasonal verbal buy-back arrangements, providing them with certified seeds, fertilizers, crop protection products, and technical agronomic support. Field-level monitoring is conducted by local field officers who use the company's proprietary 'Farm Peace' mobile application to track crop progress and record on-farm conditions. Post-harvest, all harvested produce is sorted, graded, and preserved in leased temperature-controlled cold storage facilities. The leased cold storage capacity stood at 13,000 metric tonnes in Fiscal 2026, and the company has no self-owned manufacturing units. Capacity and capacity utilisation metrics are not applicable to the company since its business is not in the nature of industrial manufacturing. The company supplies its processed-grade potatoes directly to snack food manufacturers, food processing clients, and starch factories. Transportation and logistics are coordinated and managed by the company to ensure safe and timely delivery of the produce to buyers.
Operates an integrated contract farming model with a 100% buy-back assurance, leveraging the regional agro-climatic advantages of Gujarat, supported by an expanding network of over 850 farmers and a proprietary mobile application that ensures digital tracking and traceability from seed to harvest.
Farm Peace Limited is primarily engaged in contract farming, seed trading, agri-input distribution, and trading of agricultural produce, primarily potatoes, along with related storage, maintenance, and ancillary services.
Source: p.102, p.176, p.189
As presented in the offer document. Post-listing figures are in the statements above.
| Basis | Period | Related party revenue cr | Pat cr | Ebitda cr | Pat margin | Revenue cr | Pat margin derived |
|---|---|---|---|---|---|---|---|
| standalone | FY26 | 0 | 7.5287 | 12.482 | 8.29% | 90.8277 | yes |
| standalone | FY25 | 0.016 | 6.6615 | 9.2599 | 8.41% | 79.2422 | yes |
| standalone | FY24 | 0.0036 | 6.162 | 9.2955 | 9.85% | 62.5538 | yes |
Written before listing, answered from the document itself.
Why is 86.87% of the pre-issue funds allocated to working capital and general corporate purposes instead of physical capacity or asset creation?
The company's contract farming model relies on leasing cold storage facilities and third-party logistics rather than owning industrial manufacturing units. Hence, ₹23.00 crore is required to fund seasonal potato purchases and seed distribution cycles, with ₹4.80 crore for general corporate expenses.
p.91, p.102
What is the material risk associated with the ₹68.74 crore in pending tax litigation against group companies?
The group companies Champeshvar Iron and Steel and Vireshvar Iron and Steel are facing 73 tax proceedings, primarily CGST/SGST disputes involving allegations of fake Input Tax Credit (ITC) claims from non-existent/fictitious suppliers and paper transactions under Section 74. This aggregate liability exceeds the company's total Net Worth of ₹43.48 crore.
p.265, p.280, p.290, p.320
How are loans and advances cycled between the company and its promoters, and what are the outstanding balances?
During FY26, the company cycled ₹4.25 crore in loans from Sudhir Haribhai Patel (repaid ₹2.10 crore) and ₹2.25 crore from Sandipkumar Narsinhbhai Patel (repaid ₹1.9023 crore). As of March 31, 2026, outstanding unsecured loans from promoters/directors stood at ₹2.79 crore, which can be recalled at any time.
p.63, p.407, p.409
Why has the company recorded negative Cash Flow from Operations (CFO) for three consecutive years despite reporting profit?
The company has recorded negative CFO of -₹1.54 crore (FY24), -₹17.57 crore (FY25), and -₹7.17 crore (FY26). This is primarily driven by massive working capital lockups, with trade receivables rising 249% over two years to ₹59.95 crore (66% of FY26 revenue) and inventory holdings rising to ₹19.46 crore.
p.59, p.141, p.143
What are the legal risks associated with the company's informal contract farming procurement structure?
The company does not execute legally binding written contracts with farmers, operating instead on seasonal verbal arrangements and one-page local circulars. This informal structure limits legal recourse in the event of crop side-selling, farmer disputes, or crop disease failures, though the company plans to transition to written agreements going forward.
p.28, p.162
What the issue priced at, on the figures in the document.
How the book filled. A category that bid far above the rest is a different signal from a uniformly covered issue.
| Date | Name | Shares | Price per share | Category | Issue type | Source |
|---|---|---|---|---|---|---|
| 2021-10-20 | Subscribers to Memorandum of Association | 10000 | 10 | promoter | initial | p.75 |
| 2022-12-13 | Promoter, Promoter Group and Others | 2510000 | 10 | promoter | rights | p.75 |
| 2024-06-01 | Public Shareholders (non-promoters) | 168824 | 222 | other | preferential | p.75 |
| 2024-11-11 | Promoter and Others | 320000 | 150 | promoter | preferential | p.75 |
| 2024-11-21 | Promoters, Promoter Group and Others | 280197 | 150 | promoter | preferential | p.75 |
| 2024-12-04 | Promoters and Promoter Group | 138084 | 150 | promoter | preferential | p.75 |
| 2024-12-27 | Promoter and Others | 361719 | 150 | promoter | preferential | p.75 |
| 2025-08-25 | Existing Shareholders (Bonus Issue 3:1) | 11366472 | other | bonus | p.75 |
Ceo: Sandipkumar Narsinhbhai Patel (Managing Director)
Company: ₹0.0433 crore (TDS/direct tax defaults); Promoters: ₹0.6403 crore (tax proceedings); Directors: 1 tax proceeding (amount not ascertainable); Group Companies: ₹68.7354 crore (73 tax proceedings, primarily GST/ITC disputes involving Champeshvar Iron and Steel and Vireshvar Iron and Steel).
Auditor name: M/s. R H Panwar & Associates (Statutory) / M/s A Y & Company (Peer Review)
Skin in game: Promoter & Promoter Group hold 73.96% pre-issue and 54.46% post-issue. Individual promoters hold 39.19% pre-issue and 28.86% post-issue.
Auditor rpt flags: None disclosed
Source: p.79, p.215, p.265, p.380
Numbered markers are corporate actions and, once the filings are read, capital and governance events. Prices are split-adjusted so the series is continuous.
What the numbers mean when read together — computed from the filings, not a score.
The business reported a profit, yet its operations drained cash rather than generating it. Profit that comes with negative operating cash is the single most important thing to understand here.
Why this reading: Flagged on a single year deliberately: negative operating cash alongside a reported profit is plain, material, and hard to explain benignly — exactly the kind of obvious signal that should never be smoothed over.
Operating cash flow ₹-7 cr against trailing net profit ₹8 cr. When operations consume cash while the P&L shows profit, ask whether receivables are ballooning, revenue is booked ahead of collection, or costs are being capitalised.
Borrowings rose 464% over 3 years, but only about 3% of the new debt shows up as productive assets — worth understanding what the rest funded.
Why this reading: Kept at caution rather than flagged: the disproportion is real but not extreme, and part of the borrowing may fund working capital or intangibles that this view doesn't capture.
New borrowing ₹9 cr against an asset build of ₹0 cr. Some gap is normal (working capital, dividends); a persistent or widening gap is where it becomes a concern.
Free cash flow is negative — the business consumes more than it generates once capex is paid. Fine if it is deliberate growth investment; a problem if it is structural.
Why this reading: Noted with caution — worth watching, but not yet conclusive on its own. Business has ups and downs; one soft reading is not a verdict.
Latest free cash flow ₹-7 cr, negative in 4 of 4 years. Check whether the burn funds expansion (dark stores, plants, ports) or merely sustains operations.
Borrowings rose 58% over two years while the company also carries ₹1 cr in investments. Why borrow at interest while parking money elsewhere is a fair question.
Why this reading: Noted with caution — worth watching, but not yet conclusive on its own. Business has ups and downs; one soft reading is not a verdict.
Borrowings moved to ₹11 cr from ₹7 cr. Simultaneous large investments can be legitimate treasury management, or a sign that reported cash is not freely available.
Every score below is calculated here from the reported numbers — none of it is asserted. Open the notebook at the foot of the section to see each formula with this company's figures in it.
Needs current assets and current liabilities.
Piotroski F-Score — fundamental momentum — Joseph Piotroski, University of Chicago, 2000, in a study of whether accounting signals could improve returns among cheap stocks.
Nine yes-or-no tests across profitability, leverage and operating efficiency. Each pass scores one. It asks a narrow question: is this business getting better or worse on its own terms, year over year?
How to read it7 or more suggests improving fundamentals; 3 or fewer suggests deterioration. It measures direction, not quality — a weak company improving can score higher than a strong one holding steady.
Where it failsA single year of comparison, so one unusual year distorts it. Says nothing about valuation, competitive position or management. Piotroski designed it to rank already-cheap stocks, not to judge a company in isolation.
Needs trade receivables, current assets, other expenses.
Accruals are 17.4% of assets. Free cash flow negative in 4 of 4 years.
DuPont decomposition — Devised inside the DuPont Corporation in the 1920s and still the standard way to read a return on equity.
Splits return on equity into its three sources, so the same headline number can be traced to very different businesses.
How to read itA 20% ROE built on margin and turnover is a different proposition from a 20% ROE built on 3× leverage. The first survives a downturn; the second amplifies it.
Where it failsA single year. Negative equity makes it meaningless. Leverage is structural for lenders, so the third term carries no signal there.
Capital is going in far faster than revenue is coming out. For a business mid-build that is expected — the test is whether it converts.
cumulative operating cash flow ÷ cumulative net profit
₹-30 cr ÷ ₹21 cr, over 4 years
-1.43×
Below 1.0 and persistent means profit is being recognised before the cash arrives.(net profit − operating cash flow) ÷ average total assets
(₹8 − ₹-7) cr ÷ average assets
17.4%
The share of profit that is accounting entries rather than cash. Above ~10% is where accruals start to dominate.net margin × asset turnover × leverage
8.3% × 0.91 × 2.30
17.3%
Splits ROE into whether returns come from operations or from borrowing.EBIT ÷ finance cost
₹12 cr ÷ ₹2 cr
7.90×
How many times operating profit covers the interest bill.borrowings ÷ net worth
₹11 cr ÷ ₹43 cr
0.26×
Read against the sector — infrastructure carries more than software.growth in fixed assets + CWIP, against growth in revenue
capital +2,700% vs revenue +244%, FY2023 to FY2026
2,456pp gap
Money going in far faster than revenue coming out. For an incubator this is expected — the test is whether it eventually converts.Needs more balance-sheet detail (only 3 of 6 flags testable).
NOPAT over equity plus debt less cash, at a notional 25% tax. Incremental ROIC is the return on money put in since then — the number that decides whether growth creates value or consumes it.
Return on invested capital, and incremental ROIC — Standard in corporate finance; the incremental form was popularised by Michael Mauboussin as the test of whether growth creates value.
ROIC measures what the business earns on all the capital it employs — equity plus debt, less cash. Incremental ROIC asks a sharper question: what has it earned on the money put in since a chosen year?
How to read itROIC comfortably above the cost of capital — call it 11–13% in India — means growth compounds. Below it, growth consumes. Incremental below headline means recent investment is earning less than the legacy business.
Where it failsDistorted in the year of a large acquisition. Understated for companies mid-build, where capital is deployed but capacity has not yet been commissioned — an incubator will look poor until it does not.
Read downward. Cash can cover EBITDA and still not survive capex — the third rung is where a capital-hungry business shows itself.
The earnings quality ladder — Not a named model — the standard sequence an analyst walks when testing whether reported profit is real.
Three ratios read in order, each stricter than the last.
How to read itRead downward. Each rung failing where the one above passed tells you exactly where the cash is going.
Where it failsA single year of heavy capex depresses the third rung legitimately. Judge it across a cycle.
Models that need these lines are withheld rather than estimated: net worth, current assets, current liabilities, trade receivables, inventory, net block. Nothing on this page is back-solved from a figure the company did not publish.
Each framework below is a set of stated, mechanical criteria from published work, run against this company's own filed numbers. Passing or failing a screen is not a verdict — different frameworks disagree by design, and that disagreement is itself informative.
Benjamin Graham's stated criteria for a defensive stock, applied to the filed numbers. A company failing several is not disqualified — Graham designed these to be deliberately strict.
Two ratios only: what the business earns on its capital, and what you pay for those earnings. Designed to be ranked across a universe rather than read in isolation.
The fundamental half of William O'Neil's framework. The market and leadership components are judgement calls and are not scored here.
The characteristics long-term holders commonly look for: cash-backed earnings, high returns on capital, and debt that never forces a decision.
Bars are revenue; the line is net margin. Revenue rising while the line falls is the shape worth noticing.
Operating cash first, then what the business spent and raised.
One year is a snapshot. These are the two lines that matter across a cycle.
Rising debtor or inventory days against flat sales is the earliest visible sign of stress.
Set your own assumptions and watch the numbers move. A scenario calculator — the outputs are the arithmetic of your inputs.
One canonical set of figures — the same numbers used everywhere else on this page and on the screener.
How the register has moved over recent quarters — the direction matters more than the level.
Promoter held steady from 54.46% to 54.46% across these quarters.
Other held steady from 45.54% to 45.54% across these quarters.
Where cash gets stuck. A rising inventory or debtor line against flat sales is the earliest sign of trouble in the numbers.
| Measure | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Debtor days
How long customers take to pay | 134 | 100 | 118 | 242 |
| Inventory days
How long stock sits before it sells | 50 | 72 | 136 | 103 |
| Payable days
How long the company takes to pay suppliers | 171 | 90 | 152 | 163 |
| Cash conversion cycle
Debtor + inventory − payable days | 13 | 82 | 101 | 182 |
| Working capital days | 35 | 33 | 160 | 182 |
| ROCE %
Return on capital employed | — | 89.6% | 36.4% | 26.6% |
The shape of the business over time (annual) — read the direction, not the single print.
| Line | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Revenue from operations | 26 | 63 | 79 | 90 |
| Other income | 0 | 0 | 1 | 0 |
| Depreciation | 0 | 0 | 0 | 0 |
| Finance cost | 0 | 0 | 0 | 2 |
| Profit before tax | 0 | 9 | 10 | 11 |
| Net profit (owners) | 0 | 6 | 7 | 8 |
| EPS (₹) | 1.23 | 24.44 | 17.58 | 4.97 |
Exceptional items, total income and EBITDA are read from the filed statements.
| Item | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Equity Capital | 3 | 3 | 4 | 15 |
| Reserves | 0 | 7 | 32 | 28 |
| Borrowings | 2 | 7 | 2 | 11 |
| Net block | 0 | 0 | 0 | 0 |
| CWIP | 0 | 0 | 0 | 0 |
| Investments | 0 | 1 | 1 | 1 |
| Total Assets | 17 | 32 | 69 | 100 |
| Line | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Cash from operations | -3 | -2 | -18 | -7 |
| Cash from investing | 0 | -4 | 2 | 0 |
| Cash from financing | 3 | 5 | 15 | 7 |
| Free cash flow | -3 | -2 | -18 | -7 |
| Net change in cash | 0 | 0 | 0 | 0 |
Cash from operations is the number profit has to answer to. Free cash flow is what remains after the business pays for its own growth.
These are coverage counts, not ratings. Each one asks a fixed set of questions of the filings and reports how many the company answered. A company that discloses nothing counts nothing here — that is a statement about the disclosure, not about the business.
The same read, applied to the companies this one competes with.