KN Agri Resources Limited

Consumer Defensive — Farm Products · NSE

₹198.10−₹4.49 (−2.22%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Debt is 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 KN Agri Resources Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

KN Agri Resources Limited produces and sells edible oils, animal feed ingredients, and soy value added products in India and internationally. It operates through Agri Commodities, Power, and Other segments.

IndustryFarm Products

SectorConsumer Defensive

Employees213

Annual revenue₹1,814 Cr

How does it make money?

Turns over ₹1,814 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 213 employees supports ₹8.52 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹8.52 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?Little sign of one

Returns on capital of 13.9% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -19% while net margin moved +44% 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-19%

Margin effect+44%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 6.7% a year
✗ Profit CAGR of only 5.3%

Quality vs. Valuation

Company Quality

38/ 100

Weak

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

Valuation

62/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

15.6x

3Y Median

13.8x

40 monthly readings · mean 15.2x · range 10.9x–22.4x

Sector Median

43.3x

median of 4 sector peers

⚠️Current valuation is approximately 13% above its 3y median of 13.8x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 64% below the peer median of 43.3x.

vs. its own history

Fair

13.8x median over 40 months · +13%

vs. sector peers

Cheap

43.3x median of 4 peers · -64%

vs. generic bands

Fair

15x–35x

EV/EBITDA

9.0x

PEG

2.93

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 57% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 17.0% to 13.9% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 8.87x — earnings must service borrowings before shareholders see anything.
🔴Inventory building faster than salesFinancial
Inventory up 50% against revenue up -19% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹4 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 57% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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?

Leverage amplifies any setback
Debt/Equity of 8.87x. Interest is payable whether or not the business has a good year.
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
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

1EBITDA margin holds above 1%✓ 3.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹4 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 11%✓ 13.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 5.5x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 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

4 good · 5 neutral · 2 weak

Market Cap

₹495 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.6x

Fair

Fairly valued against the generic band

P/B Ratio

1.29x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹12.67

Profitable

Profitable on a per-share basis

ROE

8.2%

Moderate

Moderate capital efficiency

ROCE

13.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

8.87x

High

High leverage

Revenue Growth (YoY)

34.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

41.7%

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

-₹4 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

3.9%

Weak

Thin margins leave little room for error

Net Margin

1.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

7.57

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.26

Defensive

Steadier than the market

52W Range Position

53%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

202.2 / 205.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

39.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,236 Cr	₹1,700 Cr	₹1,725 Cr	₹1,814 Cr	-6.7%
EBITDA	₹52 Cr	₹52 Cr	₹63 Cr	₹58 Cr	+4.0%
EBITDA Margin	2.3%	3.1%	3.7%	3.2%	—
PAT (Net Profit)	₹27 Cr	₹31 Cr	₹37 Cr	₹32 Cr	+5.3%
EPS	₹11.75	₹12.51	₹14.76	—	—
ROE	9.6%	9.9%	10.5%	8.2%	—
ROCE	17.0%	15.9%	17.0%	13.9%	—
Total Debt	₹79 Cr	₹110 Cr	₹51 Cr	₹34 Cr	-24.5%
Free Cash Flow	-₹12 Cr	₹21 Cr	-₹12 Cr	-₹4 Cr	—

🔴 Revenue has shrunk at 6.7% a year over 3 years.

🟢 EBITDA has grown at 4.0% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 3.2% over 3 years.

🟢 PAT (Net Profit) has grown at 5.3% a year over 3 years.

🔴 ROE has fallen from 9.6% to 8.2% over 3 years (-1.4 pts).

🔴 ROCE has fallen from 17.0% to 13.9% over 3 years (-3.1 pts).

🟢 Total Debt has shrunk at 24.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹434 Cr

Total Liabilities

₹49 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹14 Cr

Capex

-₹18 Cr

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 mixed5 general

KN Agri Resources (KNAGRI.NS) Holds Above ₹200 as Stock Presses Against Resistance - Covered Call ETF

https://www.siam.in/, 15 Oct

RAVALGAON - Comparison Results

Equitymaster, 17 OctResults

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

KN Agri Resources vs Nifty 50: Share Price Performance Compared

Univest, 01 Oct

Yashhtej Industries (India) Ltd Share Price

Business Today, 16 Oct

KN Agri Resources Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

KN Agri Resources Bull Case vs Bear Case for 2026

Univest, 15 Sept

Watch Items

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

DalalBaazaar Thesis

StrongValuation

MiddlingFinancial Health · Risk

WeakBusiness Quality · Growth · Profitability

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑