🔍 At a Glance
Despite selling oil, Gokul Agro isn’t in the business of hype. While Patanjali & Adani Wilmar are busy printing ads, this Gujarat-based company quietly grew profits at 67% CAGR over 5 years, achieved 27% ROE, and clocked nearly ₹19,550 Cr in FY25 revenue. At just 18.4x P/E, it may be one of the most underpriced edible oil giants in the market.
1. ✨ Introduction With Hook
If you’ve ever bought oil in India, you’ve probably heard of Fortune, Saffola, or that Baba-wala brand with unverified yoga claims. But Gokul Agro? Chances are you haven’t.
That might be your biggest blind spot.
Because while the big brands are shouting, Gokul is stacking profits, compounding earnings faster than your inflation-adjusted food bill. And the stock? Up 81% CAGR over 5 years.
2. 🌍 Business Model — WTF Do They Even Do?
Gokul Agro is in the manufacturing and processing of:
- Edible Oils: Soybean, cottonseed, sunflower, palmolein, groundnut, etc.
- Vanaspati: Brands include Richfield and Puffpride
- Non-Edible Oils & De-oiled Cakes: Used for animal feed & export
- Own Brands: Vitalife, Mahek, Zaika in edible oils
Facilities in Gandhidham, Gujarat with logistics & warehousing backbone to support large exports.
Essentially, it’s the backbone of the oil supply chain, not just the shiny bottle on your kirana shelf.
3. 📊 Financials Overview — Profit, Margins, ROE, Growth
| Metric | FY20 | FY25 | CAGR |
|---|---|---|---|
| Revenue | ₹5,586 Cr | ₹19,551 Cr | 28% |
| Net Profit | ₹19 Cr | ₹246 Cr | 67% |
| ROE | 7.6% | 27% | ✅ |
| ROCE | 20% | 34.2% | ✅ |
| EPS | ₹1.41 | ₹16.64 | 67% CAGR |
Margins have remained low (2–3%) due to high-volume, low-margin biz. But the scale covers it.
4. 💸 Valuation — Is It Cheap, Meh, or Crack?
- Current P/E: 18.4x
- Peer Median P/E: ~28x
- Fair Value Range (based on 25–30x sustainable EPS of ~₹16): ₹400 – ₹480
For a company with:
- Better ROE than Patanjali
- Higher 5Y profit CAGR than Marico
- Faster revenue growth than Adani Wilmar
…this valuation is still on the diet plan.
5. 🚀 What’s Cooking — News, Triggers, Drama
- FIIs have started entering — 1.5% stake now
- New KMPs appointed for faster disclosures
- Cash flow improving dramatically — ₹467 Cr CFO in FY25
- Zero dividends — but reinvestment is working
No Adani-level drama. No Baba-level controversy. Just boring execution.
6. 📈 Balance Sheet — How Much Debt, How Many Dreams?
| Year | Borrowings | Reserves |
|---|---|---|
| FY20 | ₹317 Cr | ₹229 Cr |
| FY25 | ₹544 Cr | ₹1,006 Cr |
- Debt is manageable, especially with profits catching up
- Net Debt-to-Equity = ~0.5x
- Assets grown to ₹4,080 Cr from ₹1,459 Cr in FY20
7. 💰 Cash Flow — Sab Number Game Hai
- FY25 CFO: ₹467 Cr
- Capex: ₹217 Cr
- Free Cash Flow = ₹249 Cr
Company has turned around its OCF from just ₹60 Cr in FY22 to nearly ₹470 Cr now.
8. Ratios — Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 27% |
| ROCE | 34.2% |
| Inventory Days | 37 |
| Debtor Days | 10 |
| Cash Conv. Cycle | 1 day |
| Interest Coverage | 4.5x+ |
All ratios point to tight operations and clean working capital.
9. 📉 P&L Breakdown — Show Me the Money
- FY25 Revenue: ₹19,551 Cr
- Gross Profit: ₹528 Cr (3% OPM)
- Net Profit: ₹246 Cr
- EPS: ₹16.6
No frills, no noise — just massive volumes and efficient throughput.
10. 📅 Miscellaneous — Shareholding, Promoters, KMP
| Holder | Stake (Mar’25) |
|---|---|
| Promoters | 73.67% |
| FIIs | 1.51% |
| DIIs | 0.04% |
| Public | 24.77% |
- KMP updates done in May 2025
- Clean, stable promoter holding with marginal FII entry = good sign
🔫 EduInvesting Verdict™
If you’re looking for:
- A debt-light business
- Boring but consistent execution
- Undervalued edible oil sector play
- 67% profit CAGR — not a typo
Then Gokul Agro deserves a seat at your watchlist (or kitchen shelf).
At current levels, this is one of those rare FMCG-agri hybrids with real profit, real growth, and zero baba branding.
Fair Value Range: ₹400 – ₹480
✍️ Written by Prashant | 🗓️ 26 June 2025
Tags: gokul agro resources, edible oil stocks, patanjali vs gokul, FMCG agri stocks, undervalued smallcaps, india food stocks, vanaspati, marico, adani wilmar
