Gokul Agro Resources Limited

Consumer Defensive — Packaged Foods · NSE

₹212.97−₹0.69 (−0.32%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, 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 Agro Resources Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Gokul Agro Resources Limited engages in the production and distribution of edible, non-edible oils and derivatives, and feed meals in India and internationally.

IndustryPackaged Foods

SectorConsumer Defensive

Employees1,091

Annual revenue₹23,854 Cr

How does it make money?

Turns over ₹23,854 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 1,091 employees supports ₹21.86 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹21.86 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 35.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 26.0% against a peer median of 51.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE51.0%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +123% while net margin moved +25% 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+123%

Margin effect+25%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.06 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

81/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

12.0x

3Y Median

16.8x

40 monthly readings · mean 15.5x · range 5.9x–28.0x

Sector Median

51.7x

median of 4 sector peers

🟢Current valuation is approximately 28% below its 3y median of 16.8x. 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 77% below the peer median of 51.7x.

vs. its own history

Cheap

16.8x median over 40 months · -28%

vs. sector peers

Cheap

51.7x median of 4 peers · -77%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.7x

PEG

0.30

What's Good / What's Bad

🟢 What's Going Well5

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 20.4% to 26.0%.
Return on capital is rising
ROCE has improved from 24.6% to 35.4%.
High return on capital employed
ROCE of 35.4% is the mark of a business that converts capital into profit efficiently.
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 · 2 high · 1 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Inventory building faster than salesFinancial
Inventory up 259% against revenue up 123% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 100% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 35.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 28% 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 77% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹219 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Size brings its own risk
Small 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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 23% a year✓ 30.6% CAGR
Latest reported year was 7.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 1%✓ 2.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹219 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 32%✓ 35.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

7 good · 4 neutral · 0 weak

Market Cap

₹6,284 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.0x

Cheap

Cheap against the generic band

P/B Ratio

4.43x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹17.68

Profitable

Profitable on a per-share basis

ROE

26.0%

Strong

Strong capital efficiency

ROCE

35.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.41x

Low

Conservative leverage

Revenue Growth (YoY)

7.3%

Modest

Modest growth

Profit Growth (YoY)

71.5%

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

₹219 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

3.6%

Weak

Thin margins leave little room for error

Net Margin

1.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.23

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.06

Defensive

Steadier than the market

52W Range Position

57%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

214.2 / 226.2

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

39.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹10,697 Cr	₹13,778 Cr	₹19,514 Cr	₹23,854 Cr	+30.6%
EBITDA	₹262 Cr	₹302 Cr	₹534 Cr	₹690 Cr	+38.1%
EBITDA Margin	2.5%	2.2%	2.7%	2.9%	—
PAT (Net Profit)	₹132 Cr	₹136 Cr	₹246 Cr	₹369 Cr	+40.8%
EPS	₹9.18	₹9.2	₹8.32	₹12.52	+10.9%
ROE	20.4%	17.3%	23.7%	26.0%	—
ROCE	24.6%	24.8%	33.8%	35.4%	—
Total Debt	₹484 Cr	₹604 Cr	₹544 Cr	₹589 Cr	+6.8%
Free Cash Flow	-₹190 Cr	₹37 Cr	₹229 Cr	₹219 Cr	—

🟢 Revenue has grown at 30.6% a year over 3 years.

🟢 EBITDA has grown at 38.1% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 2.9% over 3 years.

🟢 PAT (Net Profit) has grown at 40.8% a year over 3 years.

🟢 EPS has grown at 10.9% a year over 3 years.

🟢 ROE has risen from 20.4% to 26.0% over 3 years (+5.6 pts).

🟢 ROCE has risen from 24.6% to 35.4% over 3 years (+10.7 pts).

🔴 Total Debt has grown at 6.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹190 Cr to ₹219 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,928 Cr

Total Liabilities

₹3,506 Cr

Cash & Equivalents

₹153 Cr

Operating Cash Flow

₹325 Cr

Capex

-₹106 Cr

Shareholding (proxy)

Institutional Holding

1.6%

Insider Holding

79.1%

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

2 mixed4 general

Yashhtej Industries (India) Ltd Share Price

Business Today, 16 Oct

Gokul Agro Resources Share Price: yearly high and valuation

Univest, 26 Aug

Gokul Agro Resources (GOKULAGRO.NS) Holds Steady Near ₹222 as Traders Eye ₹233 Resistance - Option Strike Build

https://www.siam.in/, 27 Sept

With EPS Growth And More, Gokul Agro Resources (NSE:GOKULAGRO) Makes An Interesting Case

Simply Wall Street, 26 May

1000% return in five years! Multibagger stock inches close to record high after Q1FY27 results

Livemint, 30 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Gokul Agro Resources Q1 Consolidated Net Profit at 1.23B Rupees vs 717M YoY

Sahi, 29 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability · Valuation

MiddlingBusiness Quality · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑