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)
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) |
Strengths that support a “buy” view
-
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)
-
Scaling well: 5-yr sales CAGR ~28%; FY25 profit stepped up to ₹264 cr. (Screener)
-
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)
-
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)
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)
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.
