Gokul Refoils & Solvent Limited

Consumer Defensive — Packaged Foods · NSE

₹38.52−₹0.59 (−1.51%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by moderate debt load, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Gokul Refoils & Solvent Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Gokul Refoils & Solvent Limited engages in the seed processing, solvent extraction, and refining edible and non-edible industrial oils in India and internationally.

IndustryPackaged Foods

SectorConsumer Defensive

Employees332

Annual revenue₹4,120 Cr

How does it make money?

Turns over ₹4,120 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹2 left at the operating level before interest, tax and depreciation. Each of its 332 employees supports ₹12.41 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹12.41 Cr

Who are its competitors?

The closest listed comparisons in its industry are NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD, TATA CONSUMER PRODUCT LTD, DABUR INDIA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 15.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE51.0%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +32% while net margin moved -42% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+32%

Margin effect-42%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 5.1% is weak

Quality vs. Valuation

Company Quality

43/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

78/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

18.4x

3Y Median

26.4x

40 monthly readings · mean 99.0x · range 12.6x–346.3x

Sector Median

51.7x

median of 4 sector peers

🟢Current valuation is approximately 30% below its 3y median of 26.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 64% below the peer median of 51.7x.

vs. its own history

Cheap

26.4x median over 40 months · -30%

vs. sector peers

Cheap

51.7x median of 4 peers · -64%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.7x — little room if earnings dip.
🟡Profit is decliningFinancial
Net profit is down 23% over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 52% against revenue up 32% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 30% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 64% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 5.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 52% against revenue up 32%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 0%✓ 1.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.6x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 1.7x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 7% a year✓ 9.7% CAGR
Latest reported year was 9.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹25 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

7 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹381 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.4x

Fair

Fairly valued against the generic band

P/B Ratio

1.05x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.09

Profitable

Profitable on a per-share basis

ROE

5.1%

Weak

Weak capital efficiency

ROCE

15.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.06x

Moderate

Moderate leverage

Revenue Growth (YoY)

9.7%

Modest

Modest growth

Profit Growth (YoY)

56.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹25 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

1.4%

Weak

Thin margins leave little room for error

Net Margin

0.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.37

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.14

Defensive

Steadier than the market

52W Range Position

48%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

39.1 / 40.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

42.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,123 Cr	₹3,014 Cr	₹3,511 Cr	₹4,120 Cr	+9.7%
EBITDA	₹58 Cr	₹57 Cr	₹65 Cr	₹69 Cr	+5.6%
EBITDA Margin	1.9%	1.9%	1.8%	1.7%	—
PAT (Net Profit)	₹24 Cr	₹2 Cr	₹15 Cr	₹18 Cr	-8.5%
EPS	₹2.44	₹0.18	₹1.5	₹1.87	-8.5%
ROE	7.4%	0.5%	4.3%	5.1%	—
ROCE	14.4%	8.5%	14.7%	15.5%	—
Total Debt	₹425 Cr	₹282 Cr	₹280 Cr	₹386 Cr	-3.1%
Free Cash Flow	₹63 Cr	₹43 Cr	₹7 Cr	₹25 Cr	-25.9%

🟢 Revenue has grown at 9.7% a year over 3 years.

🟢 EBITDA has grown at 5.6% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 1.7% over 3 years.

🔴 PAT (Net Profit) has shrunk at 8.5% a year over 3 years.

🔴 EPS has shrunk at 8.5% a year over 3 years.

🔴 ROE has fallen from 7.4% to 5.1% over 3 years (-2.3 pts).

🟢 ROCE has risen from 14.4% to 15.5% over 3 years (+1.2 pts).

🟢 Total Debt has shrunk at 3.1% a year over 3 years.

🔴 Free Cash Flow has shrunk at 25.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹910 Cr

Total Liabilities

₹547 Cr

Cash & Equivalents

₹60 Cr

Operating Cash Flow

₹34 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

87.8%

Corporate Actions

Ex-Dividend Date

16 Sept 2011

Peer Comparison

Company	P/E	ROE
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%
TATA CONSUMER PRODUCT LTD	59.3x	7.5%
DABUR INDIA LTD	34.7x	17.2%

Recent News

1 mixed5 general

GOKUL Share Price rises 8.33%: valuation and sector view

Univest, 24 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Is Now The Time To Put Gokul Refoils & Solvent (NSE:GOKUL) On Your Watchlist?

Simply Wall Street, 24 Aug

Yashhtej Industries (India) Ltd Share Price

Business Today, 16 Oct

Gokul Refoils and Solvent vs Nifty 50: Returns Compared

Univest, 25 Sept

Gokul Refoils sets 33rd AGM for September 29, 2026

scanx.trade, 03 Sept

Gokul Refoils and Solvent: Best Stock in Its Sector? Key Metrics

Univest, 25 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongValuation

MiddlingBusiness Quality · Financial Health

WeakGrowth · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑