🟠 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 company binds them all together—literally.
Meet Agarwal Industrial Corporation: India’s largest integrated player in bitumen logistics.
- They import, store, process, transport, and sell bitumen.
- They’ve got a fleet of specialized tankers.
- And they’re not dependent on crude oil prices like 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 of 150+ bitumen tankers and 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 India loves roads.
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: 12.5x–15x
- Capex underway, but earnings visibility remains strong
- Bitumen logistics = recurring demand play with limited volatility
5. 🛠️ What’s Cooking – News, Triggers, Drama
- 🛢️ Capex update: ₹40 Cr spent on Mangalore bitumen terminal
- 🚛 Expanding LPG tanker logistics vertical
- 🔧 Rising infra push in highways = tailwind for bitumen volumes
- 👩💼 Appointed new company secretary (Yashee Agrawal) – family continuity?
- 📉 Stock down 16% in 1 year despite strong earnings
Clearly, the market is sleeping. But the roads sure aren’t.
6. 🏦 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Total Assets | ₹1,345 Cr |
| Total Borrowings | ₹435 Cr |
| Net Worth | ₹627 Cr |
| D/E Ratio | ~0.69x |
- Not debt-free, but manageable
- Capex funded via internal accruals + term loans
- Interest coverage is healthy at ~6x
Verdict: Slightly leveraged, but roads can carry that weight.
7. 💸 Cash Flow – Sab Number Game Hai
| Year | CFO | Capex | FCF Estimate |
|---|---|---|---|
| FY23 | ₹157 Cr | ₹158 Cr | ~₹0 Cr |
| FY24 | ₹112 Cr | ₹276 Cr | Negative |
| FY25 | ₹100 Cr | ₹157 Cr | ~₹-57 Cr |
- Aggressive capex in FY24–25 = FCF negative
- Capex now tapering off
- Cash conversion expected to improve from FY26
8. 📈 Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 17.0% |
| ROE | 20.3% |
| OPM | 8.4% |
| Debtor Days | 41 |
| Inventory Days | 38 |
| Payable Days | 50 |
| CCC | 29 days |
Working capital is tight and efficient. Bitumen flows = cash flows.
9. 📉 P&L Breakdown – Show Me the Money
- Revenue: ₹2,399 Cr
- EBITDA: ₹213 Cr (8.8%)
- Net Profit: ₹116 Cr
- EPS: ₹77.34
Profits have 2 legs:
- Margin from product biz
- Stickier annuity from tanker biz
Unlike chemical peers, revenue isn’t cyclical—it’s logistics + infra-driven.
10. 🤼 Peer Comparison – Who Else in the Game?
| Company | PE | ROE | OPM | Mcap (₹ Cr) |
|---|---|---|---|---|
| Supreme Petro | 45x | 17.3% | 8.9% | ₹16,493 |
| Manali Petro | 37x | 2.9% | 6.5% | ₹1,163 |
| Kothari Petro | 16x | 23.8% | 13.9% | ₹1,069 |
| Agarwal Indl. | 13x | 20.3% | 8.4% | ₹1,471 |
At current price, AGARIND looks like the cleaner, stronger play in this pack—without the sugar rush volatility.
11. 🧾 Miscellaneous – Shareholding, Promoters
| Category | Mar 2025 |
|---|---|
| Promoters | 57.20% |
| FIIs | 5.98% |
| DIIs | 0.54% |
| Public | 36.28% |
| Shareholders | 20,119 |
🧾 Promoter holding steady but not increasing
🔥 FII interest grew from 3.5% in 2022 to ~6% now
📉 Retail increasing steadily—sign of stealth re-rating?
12. 🧠 EduInvesting Verdict™
Agarwal Industrial is like that bitumen tanker—slow to move, but once it picks up momentum, it crushes all speed bumps.
- Strong moat in logistics
- Predictable cash flows
- Reasonable valuation
- But needs more investor attention to get PE expansion
📍 Verdict:
🛣️ “This is the stock India’s road dreams ride on—sticky, stealthy, and rolling toward ₹3,000 Cr topline.”
✍️ Written by Prashant | 📅 June 28, 2025
Tags: Agarwal Industrial Corporation, Bitumen stocks, Infra logistics, Indian roads, Petrochemicals, EduInvesting, tanker stocks,
