Narmada Agrobase Ltd: ₹65 Cr Sales, 2 Brands, 1 Court Case – Gaay Chhap or Gaayab Chhap?
1. At a Glance
Narmada Agrobase is basically Gujarat’s contribution to the Indian cattle buffet — cotton seed, oil cake, poultry feed, cattle mash, and even “Churma” brand cattle feed (not to be confused with Rajasthani sweet dish). The company’s market cap is ₹86 Cr, revenues around ₹65 Cr, PAT ₹4 Cr. Promoters own 50.3%. Stock price is ₹22, which is also the cost of one fancy cattle feed bag. And now, the company is busy in court fighting copycats trying to launch “New Narbada Gold.” Desi FMCG drama, but for cows.
2. Introduction
Founded in 2013, listed in 2022, Narmada Agrobase is still a baby compared to its large-cap cousins like Godrej Agrovet or Avanti Feeds. But small companies often have desi masala stories: promoter holdings dropping from 66% to 50% in 2 years, rising working capital days (191 days FY25 vs 124 earlier), and yet a steady sales growth of 24% in the last 3 years.
The company’s play is simple: buy raw material cheap in Ahmedabad mandi, process into high-protein cattle feed, and sell through agents in Gujarat & Rajasthan. Their biggest brand USP? “Gaay Chhap”. Yes, literally a cow stamp. Because if you can’t brand your product with a cow in India, what’s the point?
3. Business Model (WTF Do They Even Do?)
Think of Narmada as a mandi-to-moo aggregator.
Cotton Seed Meal & Oil Cake – High protein, used for cattle and poultry.
Delinted Cotton Seeds – Seeds with hair removed (imagine a bald seed Salman Khan).
Cotton Linters – By-product used in furniture, paper, yarns.
Cattle Feed – Under “Churma” and “Gaay Chhap” brands.
Multigrain High Protein Meal (new launch) – For poultry feed.
Revenue is split between cattle feed and cotton seed processing. Capacity: 125 MT/day. Current reach is Rajasthan-heavy. Plans: Asia-Pacific export. Yes, they want to sell cow food abroad.
4. Financials Overview
Latest Q1 FY26 vs Q1 FY25 & Q4 FY25:
Source table
Metric
Latest Qtr (Q1 FY26)
YoY Qtr (Q1 FY25)
Prev Qtr (Q4 FY25)
YoY %
QoQ %
Revenue
₹11.1 Cr
₹12.3 Cr
₹29.3 Cr
-9.6%
-62.1%
EBITDA
₹1.3 Cr
₹1.6 Cr
₹0.6 Cr
-16.1%
+120%
PAT
₹1.0 Cr
₹1.0 Cr
₹0.8 Cr
0.0%
+25.0%
EPS (₹)
0.27
0.27
0.21
0.0%
+28.6%
Commentary: Sales fell like Sensex on Budget day, but margins held, PAT flat YoY. QoQ, profit improved as costs got controlled. Classic “small-cap teekha performance” — one quarter feast, one quarter famine.
5. Valuation (Fair Value Range Only)
P/E Method: EPS TTM = ₹1.08. Industry P/E = 21. Stock P/E = 21. Fair value = ₹20–₹25.
