1.At a Glance
Gokul Agro Resources Ltd is like that gym bro who posts crazy transformation pictures but still eats street momos — the body (sales) is ripped, but the arteries (margins) are clogged. With a69.8% profit CAGR over 5 yearsandROCE at 34.5%, the numbers flex hard. But here’s the twist —Operating Profit Margin stays at 2-3%, making it the FMCG equivalent of working 18 hours for ₹18.
2.Introduction
Imagine Gandhidham, Gujarat — known for salt pans, ports, and now, edible oil powerhouses. Gokul Agro sits here, pumping out edible and non-edible oils, vanaspati, and meals like a culinary version of Reliance Jio —40+ products, 0% dividend payout, and 100% drama.
Q1 FY26 just dropped: sales up, profit up, CEO pay up (₹17 lakh/month, because why not), and the Board approved a share split + ESOP plan + sweat equity for promoters. If this were a Netflix series, the season finale would be called“Oil, Sweat & Shares.”
3.Business Model (WTF Do They Even Do?)
The company crushes seeds, refines oil, packages it into consumer brands (Vitalife, Mahek, Zaika), and throws in vanaspati brands (Richfield, Puffpride) for the paratha-and-halwai market. On the non-edible side, it makes meals and oils for industrial uses, feeding everything from soap makers to biofuel producers.
The model is volume-heavy, margin-light — think Big Bazaar meets IOC: high turnover, low per-unit profit. The real money? Supply chain control + bulk B2B orders. FMCG brand growth could boost margins if they don’t drown in commodity price volatility first.
4.Financials Overview
Let’s slice Q1
FY26 and TTM:
- TTM Sales:₹17,759 Cr (YoY +3.7%)
- TTM EBITDA:₹481 Cr → OPM ~2.7%
- TTM PAT:₹223 Cr → PAT Margin ~1.25%
- TTM EPS:₹15.10
- Stock P/E (TTM):314 ÷ 15.10 =20.79(matches screener)
- ROCE:34.5%
- ROE:26.5%
Commentary: Great return metrics despite wafer-thin margins — clearly, asset turns are doing the heavy lifting. But the cost of borrowing is up (₹535 Cr debt), which could make things spicy if interest rates rise.
5.Valuation – Fair Value Range
| Method | Calc Details | FV (₹) |
|---|---|---|
| P/E | Sector avg ~25 × EPS 15.10 | 378 |
| EV/EBITDA | EV ₹5,159 Cr ÷ EBITDA 481 = 10.73× vs sector avg 12× | 355 |
| DCF | Assuming 18% EPS CAGR, 10% discount rate, terminal PE 15 | 340 |
Fair Value Range:₹340 – ₹380
Disclaimer:This FV range is for educational purposes only and is not investment advice.
6.What’s Cooking – News, Triggers, Drama
- Q1 FY26 Results:PAT ₹64 Cr (+51.9% YoY).
- CEO Pay Hike:From “comfortable” to “very comfortable” ₹17 lakh/month.
- ESOP Plan:Employees to get stock —
