Gujarat Peanut and Agri Products Limited

Consumer Defensive — Farm Products · BSE

₹86.02−₹2.48 (−2.80%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:56 pm

Understanding the Business

Company site ↗

The 60-second version of Gujarat Peanut and Agri Products Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Gujarat Peanut and Agri Products Limited engages in manufacturing, cleaning, grading, processing, sorting, buying, selling, trading, and marketing of agricultural produce and commodities in India.

IndustryFarm Products

SectorConsumer Defensive

Employees20

Annual revenue₹389 Cr

How does it make money?

Turns over ₹389 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 20 employees supports ₹19.47 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹19.47 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES 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 26.1%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 21.2% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +163% while net margin moved +241% 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+163%

Margin effect+241%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

64/ 100

Average

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

Valuation

75/ 100

Cheap

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

10.2x

1.2Y Median

12.7x

14 monthly readings · mean 11.9x · range 8.6x–14.3x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 20% below its 1.2y median of 12.7x. 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 76% below the peer median of 43.3x.

vs. its own history

Fair

12.7x median over 14 months · -20%

vs. sector peers

Cheap

43.3x median of 4 peers · -76%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.3x

PEG

0.09

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 1.9% to 3.6% over 3 years.
Return on capital is rising
ROCE has improved from 18.6% to 26.1%.
High return on capital employed
ROCE of 26.1% 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

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 138% over 3 years, from ₹17 Cr to ₹40 Cr.
🔴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 405% against revenue up 163% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹10 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.1% 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.
Margin expansion has further to run
EBITDA margin has risen from 1.9% to 3.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 76% 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?

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.
Several serious flags at once
3 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 29% a year✓ 38.0% CAGR
Latest reported year was 30.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 2%✓ 3.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹10 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 4.0x
How much operating profit can fall before interest stops being comfortably covered.

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

5 good · 5 neutral · 1 weak

Market Cap

₹88 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.2x

Cheap

Cheap against the generic band

P/B Ratio

1.75x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹8.41

Profitable

Profitable on a per-share basis

ROE

21.2%

Strong

Strong capital efficiency

ROCE

26.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.79x

Moderate

Moderate leverage

Revenue Growth (YoY)

30.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

5.6%

Modest

Slow profit growth

Dividend Yield

None

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

Free Cash Flow

-₹16 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

5.6%

Average

Average asset productivity

Operating Margin

2.7%

Weak

Thin margins leave little room for error

Net Margin

1.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.66

Comfortable

Healthy short-term liquidity

52W Range Position

60%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

80.4 / 76.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

62.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹148 Cr	₹297 Cr	₹363 Cr	₹389 Cr	+38.0%
EBITDA	₹3 Cr	₹8 Cr	₹13 Cr	₹14 Cr	+69.8%
EBITDA Margin	1.9%	2.7%	3.6%	3.6%	—
PAT (Net Profit)	₹1 Cr	₹4 Cr	₹6 Cr	₹7 Cr	+107.9%
EPS	₹0.8	₹3.85	₹6.33	₹8.41	+119.0%
ROE	14.6%	36.5%	33.7%	14.6%	—
ROCE	18.6%	32.5%	63.3%	26.1%	—
Total Debt	₹17 Cr	₹44 Cr	₹39 Cr	₹40 Cr	+33.4%
Free Cash Flow	-₹1 Cr	-₹27 Cr	₹7 Cr	-₹10 Cr	—

🟢 Revenue has grown at 38.0% a year over 3 years.

🟢 EBITDA has grown at 69.8% a year over 3 years.

🟢 EBITDA Margin has risen from 1.9% to 3.6% over 3 years (+1.7 pts).

🟢 PAT (Net Profit) has grown at 107.9% a year over 3 years.

🟢 EPS has grown at 119.0% a year over 3 years.

🟡 ROE has held roughly flat at 14.6% over 3 years.

🟢 ROCE has risen from 18.6% to 26.1% over 3 years (+7.5 pts).

🔴 Total Debt has grown at 33.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹122 Cr

Total Liabilities

₹72 Cr

Cash & Equivalents

₹11 Cr

Operating Cash Flow

-₹9 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.2%

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

1 negative5 general

GUJARAT PEANUT AND AGRI PRODUC Share Price

Upstox, 05 May

Gujarat Peanut and Agri Products Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Gujarat Peanut AGM resolutions pass with 100% assent

scanx.trade, 28 Sept

Gujarat Peanut and Agri Products Ltd Peer Comparison – Compare with Others

Value Research, 31 Aug

Gujarat Peanut and Agri Products shares debut at 20% discount to IPO price on BSE SME platform

The Economic Times, 03 Oct

Gujarat Peanut & Agri Products accepts auditor resignation

scanx.trade, 01 SeptManagement

🔴Potentially negativeA senior departure, and an auditor's resignation especially, is worth understanding before anything else in this report.

Watch Items

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

DalalBaazaar Thesis

StrongGrowth · Profitability · Valuation

MiddlingBusiness Quality · Financial Health

WeakRisk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑