🟠 At a Glance
Agarwal Industrial isn’t your average petro stock—it’s a vertically integrated bitumen logistics specialist. With ₹2,400 Cr revenue, 20% ROE, and tankers full of cash flow, this underrated infra enabler just posted record FY25 profits. But with the stock down 16% this year, is it ready to resurface?
1. 🛞 Introduction with Hook
You’ve heard of cement stocks. Road construction stocks. Logistics stocks. But one companybinds them all together—literally.
MeetAgarwal Industrial Corporation: India’s largest integrated player in bitumen logistics.
- Theyimport, store, process, transport, and sellbitumen.
- They’ve got a fleet ofspecialized tankers.
- And they’renot dependent on crude oil priceslike refiners.
This is the stock roads are made of—literally and financially.
2. 🧱 Business Model – WTF Do They Even Do?
AGARIND runs a 3-in-1 business:
- Bitumen and Allied Products🛢️
- Industrial and modified bitumen used for roads and waterproofing
- Bitumen emulsion,
- PMB, CRMB
- Logistics Division🚛
- Fleet of150+ bitumen tankersand growing LPG tanker presence
- Inland and port-to-plant logistics
- Wind Energy Division🌬️
- Just for tax and ESG purposes (revenue negligible)
In short: They make money every time someone builds a road. And Indialovesroads.
3. 💰 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY25 |
|---|---|
| Revenue | ₹2,399 Cr |
| Net Profit | ₹116 Cr |
| ROE | 20.3% |
| ROCE | 17.0% |
| OPM | 8.4% |
| EPS | ₹77.34 |
📈 5-Year Profit CAGR: 36%📈 10-Year Revenue CAGR: 27%💥 FY25 EBITDA: ₹213 Cr
Growth isn’t a fluke—it’s consistent, compounding, and tanker-backed.
4. 📊 Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| CMP | ₹985 |
| PE Ratio | 12.7x |
| Book Value | ₹419 |
| PB Ratio | 2.35x |
| Market Cap | ₹1,471 Cr |
🎯Fair Value Range: ₹1,050 – ₹1,350
- Based on normalized EPS of ₹85–100
- Fair PE range:
