gokulagroresources

 Here’s a crisp, data-driven read on Gokul Agro Resources (NSE: GOKULAGRO), plus the exact parameters to judge “is it a good buy?”, what those parameters mean, and what ranges to prefer for an edible-oil / agri-processing mid-cap.

Snapshot (as of Sep 8, 2025)

• Business: Edible & non-edible oils, meals; processing + trading; facilities in Gandhidham; brand portfolio (Vitalife, Mahek, Zaika; vanaspati brands Richfield, Puffpride). (Screener)

• Scale & expansion: Refinery capacity increased to ~2,800 TPD; Haldia refinery acquired via NCLT; land acquired for a 1,400 TPD refinery at Krishnapatnam; 2.7 MW solar commissioned.

• FY25 performance (consol): Sales ~₹19,551 cr; Net Profit ₹264 cr; OPM ~3%. ROE 27% (last yr), ROCE 34% (TTM shown on Screener). Cash from ops ₹467 cr. (Screener)

• Valuation ballpark: P/E ~19x, P/B ~4.1x, EV/EBITDA ~7.9x (FY25). (Screener, The Economic Times)

• Balance sheet: Debt/Equity ~0.6x (FY25); Interest cover ~3.1x; Current ratio ~1.1–1.2x. (Moneycontrol)

• Working capital: Cash Conversion Cycle ~1 day; Debtors ~10 days, Inventory ~37 days (FY25) — unusually tight/efficient. (Screener)

• Shareholding: Promoters 73.67%; pledged ~13.8% of promoter holding (Jun-2025). FIIs ~1.44%. (Trendlyne.com)

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What to check (Meaning • Ideal range • Where Gokul stands)

Parameter	What it means (how it helps you)	“Good/ideal” range for edible-oil processors	Gokul now	Read
Revenue growth (3–5 yr)	Ability to scale despite commodity swings	>15% CAGR good; >20% very good	5-yr sales CAGR ~28%	(Screener)
OPM / EBITDA margin	Core pricing power & efficiency; low for the sector	2–4% normal; >4% strong	~3%	(Screener)
ROCE	Returns on total capital employed; best single quality gauge	>20% solid; >25% excellent	~34%	(Screener)
ROE	Returns to equity holders; sustainable > CoE	>15% good; >20% excellent	~27% (FY25)	(Screener)
Debt / Equity	Leverage risk; WC-heavy sectors tolerate more	<0.5x ideal; <1.0x acceptable	~0.60x (FY25)	(Moneycontrol)
Interest coverage	Cushion vs. rate/earnings shocks (EBIT/Interest)	>3x comfortable; 2–3x watch	~3.07x (FY25)	(The Economic Times)
Current ratio	Liquidity headroom	>1.5x comfy; 1.0–1.5x thin	~1.14x	(Moneycontrol)
Cash Conversion Cycle	WC efficiency (lower is better)	≤10 days excellent; <30 days good	~1 day	(Screener)
Debtor / Inventory days	Collection & inventory discipline	Debtors <30d; Inventory <45d	10d / 37d	(Screener)
Promoter holding	Alignment; stability	>50% strong	73.67%	(Trendlyne.com)
Promoter pledge	Red flag if high (lender risk)	0% best; <5% tolerable; >10% caution	13.8% (caution)	(Trendlyne.com)
EV/EBITDA	Clean cross-cycle value gauge	Sector often 10–15x; a discount can signal value	~7.9x (FY25)	(The Economic Times)
P/E & P/B	Quick value/quality proxies	For ROE>20%, P/B 3–5x is typical	P/E ~19x; P/B ~4.1x	(Screener, The Economic Times)
Cash from Ops vs PAT	Earnings quality (cash conversion)	CFO ≥ PAT across cycle	FY25 CFO 467 cr > PAT 264 cr	(Screener)

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Strengths that support a “buy” view

1. High returns + tight working capital: ROCE ~34% with near-zero CCC, 10-day debtors, 37-day inventory — a rare combination in a commodity-linked business. (Screener)

2. Scaling well: 5-yr sales CAGR ~28%; FY25 profit stepped up to ₹264 cr. (Screener)

3. Valuation below the large peer: EV/EBITDA ~7.9x vs Adani Wilmar’s low-teens (FY25), implying a relative discount despite strong ROCE. (The Economic Times)

4. Capacity / footprint: Haldia refinery acquired; 2,800 TPD capacity; plan for 1,400 TPD Krishnapatnam unit; solar plant aids costs/ESG.

Key watch-outs (could cap the bull case)

• Promoter pledge ~13.8% of promoter holding — materially above comfort; track any increase/decrease and lender terms. (Trendlyne.com)

• Thin liquidity buffers: Current ratio ~1.1–1.2x and interest cover ~3x are adequate but not lush; any margin compression or rate spike can pinch. (Moneycontrol, The Economic Times)

• Commodity & policy sensitivity: Palm/soy price swings, import duties, and FX drive margins; sector demand tailwinds (e.g., GST cuts on processed foods) don’t directly lift edible-oil VAT/GST but can help allied categories. (The Economic Times)

• Sector structure: India remains import-dependent for edible oils; crop-mix shifts can keep the ecosystem volatile. (Economic Research Service, The Times of India)

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How to interpret the ranges (plain English)

• ROCE/ROE: Tell you whether capital is compounding efficiently. In mid-cap processing, ROCE >20% and ROE >15% are strong; Gokul clears both — a quality positive. (Screener)

• Margins (OPM/EBITDA): Don’t expect FMCG-like margins; 2–4% is normal for bulk oils. The trick is stable or improving margins through cycles — Gokul’s ~2–3% fits sector norms. (Screener)

• Leverage & coverage: D/E <0.5x is ideal; <1x is acceptable for WC-heavy businesses. Interest cover >3x gives comfort — Gokul is around the threshold; keep an eye here. (Moneycontrol, The Economic Times)

• Working capital cycle: A low or near-zero CCC (fast collections, lean inventory) cushions margins and reduces borrowing needs — Gokul’s execution here is a standout. (Screener)

• Valuation: For a company with ROE ~20%+, a P/B of 3–5x is common; EV/EBITDA of high-single to low-teens is typical in this space. Gokul sits on the cheaper side by EV/EBITDA. (The Economic Times)

• Promoter pledge: Ideally 0%. Anything >10% deserves caution until you see a clear reduction trend. Gokul’s 13.8% is the single biggest governance risk flag today. (Trendlyne.com)

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Bottom line (my synthesis)

• Quality & execution: High ROCE, efficient WC, and consistent growth argue positively. (Screener)

• Valuation: Reasonable to attractive on EV/EBITDA relative to the large peer universe. (The Economic Times)

• Risk needle: Nudged to Neutral (not Low) due to promoter pledge and only adequate coverage/liquidity. If pledge trends down and margins/coverage inch up, the thesis strengthens. (Trendlyne.com, The Economic Times)

If you want, I can set up a quick tracker for: pledge %, interest cover, ROCE, EV/EBITDA, and CCC so you can see when it crosses your preferred thresholds.