Author: Prashant Marathe
Date Published: May 21, 2025
🧾 At a Glance
- Total Income (Q4): ₹102.28 Cr
- Net Profit (Q4): ₹63.34 Cr
- EPS (Q4): ₹4.72
- CMP: ₹98.40
- EduFair Value: ₹115–₹135
👉 Verdict: Not an agro stock. It’s a holding company with cash coming out of nowhere.
🕵️ About the Company
Don’t be fooled by the “Agro” in the name.
Oswal Agro Mills Ltd is no fertilizer seller.
It’s:
- A holding company
- With investments in real estate, treasury, FDs, and group entities
- That sometimes earns from operations, but mostly from interest & dividends
This is not a growth company. It’s a value hole that accidentally profits hard once in a while.
📊 Q4 FY25 Snapshot
| Metric | ₹ Cr |
|---|---|
| Total Income | 102.28 |
| Net Profit | 63.34 |
| EPS (Basic) | ₹4.72 |
| Net Margin | 61.9% (!!) |
Those margins aren’t from business. They’re from treasury.
🧠 EduInvesting Take
“Oswal isn’t undervalued — it’s unclassified.”
It behaves like:
- A family fund
- With a public listing
- That accidentally generates 40–60% net margin
No visible revenue growth. No CAPEX. No business story.
But if you buy it? You own:
✅ A balance sheet with income
✅ Predictable interest/dividend flows
✅ No overvaluation
🧮 EduFair Value Estimate
- Q4 EPS = ₹4.72 ⇒ Annual = ₹18.88
- Conservative P/E = 6–7 (because: no business growth)
✅ Fair Value = ₹115 – ₹135
CMP = ₹98.40 → Fair. Slight upside.
⚠️ Risks
- ❗ No business growth
- 📉 One bad quarter wipes all narrative
- 🧾 Zero investor communication
- 🪞 NAV discount — book value might be higher than market cap
💸 CMP vs Fair Value
| Metric | Value |
|---|---|
| CMP | ₹98.40 |
| Annual EPS | ₹18.88 |
| P/E at CMP | ~5.2x |
| EduFair Value | ₹115–₹135 |
🏁 EduFinal Word
Oswal Agro Mills isn’t agro. And it’s barely a mill.
But it’s:
✅ Profitable
✅ Dirt cheap
✅ Steady cashflow
Edu Verdict:
Buy if you’re okay owning a holding company that behaves like a government bond with a BSE ticker.
