1. At a Glance
KN Agri Resources is the farmer’s middleman with a balance sheet. From soybeans to flour to edible oil, they run the whole agri-commodity relay race — but instead of medals, they collect margins. The ₹583 Cr market-cap SME stock is trading at a P/E of ~15.7, which is cheaper than your average FMCG glamour stock but with the thrill of an edible oil price swing. And yes, they’ve reduced debt — but still no dividend. Apparently, generosity is not part of the crop cycle.
2. Introduction
Welcome to KN Agri Resources — where “farm to fork” doesn’t mean Instagrammable salads, but literal truckloads of soybeans and oil drums. Incorporated in 1987, the company has been through more commodity cycles than a kirana shop in monsoon season.
They handle purchasing, storing, processing, packaging, and marketing of edible oils, food products, and even generate some power on the side.
Recent numbers show stability, but not excitement — sales flat at ₹1,725 Cr in FY25 vs ₹1,691 Cr in FY24, and net profit creeping up to ₹37 Cr.
But the real story? Promoter holding dropped from 73.66% to 68.86% in a single year. Whether that’s “strategic” or “I need liquidity” is up for speculation.
3. Business Model (WTF Do They Even Do?)
Think of KNARL as the guy in the agri ecosystem who does everything except grow the crop. The value chain:
- Procurement → Farmers
- sell soybeans, oilseeds, wheat, etc. to KNARL.
- Processing → Solvent extraction for edible oils, refining, flour milling.
- Byproducts → Soya de-oiled cake (used as cattle feed).
- Trading → Bulk trading of food commodities (think wheat, rice).
- Power Generation → Using byproducts to run captive plants — because why pay the power bill when you can burn soybean husk?
They target both B2B (bulk sales to other FMCG companies) and exports. Margins are low (OPM ~4%), but volume is high — welcome to commodity business.
4. Financials Overview
Let’s annualise the latest EPS before we talk multiples.
Q4 FY25 EPS = ₹9.08 → Annualised = ₹9.08 × 4 = ₹36.32.
At CMP ₹233 → P/E = 6.4 (Yes, way lower than the TTM 15.7 figure, meaning earnings improved sharply).
FY25 Snapshot:
- Revenue: ₹1,725 Cr (+2% YoY)
- EBITDA: ₹61 Cr (EBITDA margin 3.54%)
- PAT: ₹37 Cr (+19% YoY)
- ROE: 11.1%
- ROCE: 14.8%
- Debt: ₹51 Cr (down from ₹110 Cr
