1. At a Glance – Tikamgarh Ka Trader, Dal Mill Ka Dream
MRP Agro Ltd is that classic SME stock which looks boring on the surface but keeps throwing weird surprises once you open the Screener tabs. Market cap of ~₹103 Cr, current price hovering around ₹93, stock down ~38% YoY, yet ROCE sitting smugly at ~39% and ROE north of 30%. Debt? Zero. Yes, zero. In a commodity trading business. That alone deserves a slow clap.
Latest quarter (Dec 2025) revenue came in at ₹14.14 Cr with PAT of ₹1.50 Cr. Sounds decent, right? But wait — QoQ revenue is down ~70% and profit down ~48%. So the stock is behaving like a volatile mandi price chart during monsoon season. Operating margins though? A spicy 16.83% in Q3, which is unusual for a bulk agri trader unless something structural is changing.
Promoters hold ~65.7%, no pledging, and the company just finished a preferential warrant allotment to promoters at ₹130 (yes, higher than current market price — make of that what you will). Expansion into flour milling and cold storage is underway, subsidies in tow. Is this a boring trader evolving into a branded agri processor? Or just another SME doing thoda sa sab kuch? Let’s find out.
2. Introduction – From Dalal Street to Dal Mill
MRP Agro was incorporated in 2018, which in SME years means it has already lived multiple lifetimes. The company started as a bulk trader of agro commodities — food grains, fly ash, coal — with import-export sprinkled on top like garam masala. The model was simple: source from mandis and auctions, do quality checks, sell B2B to wholesalers. No brand. No fancy packaging. Just volume and relationships.
But then something interesting happened. Margins started improving post FY23. ROCE quietly crept up. Fixed assets suddenly appeared on the balance sheet. CWIP ballooned and then vanished. And management started talking about flour mills, cold storage, and value addition instead of just “trading margins”.
This is where MRP Agro starts behaving less like a boring trader and more like that cousin who ran a kirana store and suddenly wants to launch a D2C brand with a Shark Tank pitch deck.
The company operates a urad
dal processing unit in Tikamgarh, Madhya Pradesh, with an annual capacity of ~3 lakh quintals. It also has its own B2C brands like Janm Silver, Janm Gold, Black Diamond, etc. Not exactly Tata Sampann, but hey — everyone starts somewhere.
So the big question:
Is MRP Agro transitioning from a low-quality trading P&L to a higher-quality processing + branding story? Or is this just capex-induced margin noise?
3. Business Model – WTF Do They Even Do?
Let’s simplify this without using MBA jargon.
Step 1: Trading (The Old Avatar)
MRP Agro buys:
- Urad (whole, split)
- Food grains
- Fly ash
- Coal
Sourcing happens via auctions in mandis and markets. They hold a local mandi license in Tikamgarh and are registered with Jharkhand’s Mines & Geology department for minerals. Basically, they know how to buy stuff legally without ED knocking on the door. Good start.
They sell B2B to wholesalers. Margins are thin. Volume matters. Working capital cycles can be brutal — but MRP somehow manages a current ratio of 25+. That’s not a typo.
Step 2: Processing (The Upgrade)
MRP Agro operates a urad dal mill:
- Capacity: ~4 tons/hour
- Annual capacity: ~3 lakh quintals
- Land: ~96,644 sq ft (government allotted)
- Built-up area: ~27,000 sq ft
Processing converts raw urad into higher-margin dal products. This is where margins jump from “meh” to “hmm interesting”.
Step 3: Branding (The Risky Experiment)
They sell B2C under brands like:
- Janm Silver / Gold / Platinum
- Black Diamond
- Sikka
This is still a
