1. At a Glance – Soyabean Sultan or Margin Survivor?
₹454 crore market cap. ₹181 stock price. Down 8.37% in three months and -22.9% over one year. Stock P/E at 13. Book value ₹146. ROCE 14.8%. ROE 11.1%. Debt-to-equity just 0.13. Enterprise value ₹495 crore.
Latest quarter (Dec 2025) revenue ₹512.65 crore. PAT ₹5.05 crore. EPS ₹2.02.
Let’s pause.
₹512 crore revenue in a quarter, but operating margin at 1.98%. This is not a luxury perfume company. This is edible oil — razor-thin margins, high volume, soybean drama, and government policy roulette.
Sales grew 7.9% sequentially. Profit fell 26.4%.
Is this a boring commodity grinder… or a disciplined operator quietly compounding?
When a company trades at 13x earnings in a sector where peers go 20x+, you either found value… or a margin time bomb.
Let’s open the oil drum and see what’s inside.
2. Introduction – From Soyabean to Stock Exchange
Incorporated in 1987, KN Agri Resources didn’t wake up one morning and decide to sell soy oil. This is a three-decade-old edible oil war veteran founded by the Shrishrimal brothers.
The business? Solvent extraction of soybean, refining edible oil, producing de-oiled cake (DOC), flour milling, trading agri commodities, and even generating power through four windmills.
Yes, they crush soybeans, refine oil, sell cake to feed industry, mill flour, and spin wind turbines. This is not diversification. This is rural Avengers.
They operate three plants in Madhya Pradesh with:
- 3.75 lakh TPA solvent extraction capacity
- ~60,000 TPA edible oil refining
- ~24,000 TPA flour milling
They sell in 15 Indian states. Export revenue is 12%, domestic 88%.
Clients include heavyweights like Adani Wilmar, Cargill, Bunge, Olam, Cofco, ITC, Godrej Agrovet.
When you supply to giants, you don’t negotiate — you survive.
But survival in edible oil means managing soybean volatility, import duties, government regulation, and global pricing swings.
So the question is:
Are they a price taker… or a disciplined margin defender?
Let’s see.
3. Business Model – WTF Do They Even Do?
Imagine this:
Farmer grows soyabean → KN Agri buys it → crushes it → extracts oil → refines oil → sells oil under “Khanpan” and “Classic” → leftover becomes de-oiled cake → sold to feed industry → some trading of maize, pulses, wheat → flour milling → windmills generate power.
This is farm-to-fork industrial style.
Main revenue drivers:
- Soya oil (refined and crude)
- De-oiled cake (DOC)
- Trading commodities
- Flour milling
DOC is critical because feed industry demand keeps it relevant.
They operate near raw material sources in MP. That reduces transport cost
