Gokul Agro (GOKULAGRO)

FairStock Score: 58/100 — STEADY

Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Gokul Agro is a business I can understand—a processor and seller of edible oil—but understanding it immediately reveals commodity economics. In the latest quarter, sales of ₹6,314 Cr produced just ₹78 Cr of net profit. That is a net margin of roughly 1.2%. In a category where oil prices swing, such thin margins leave little cushion; the moat is paper thin. The 26.58% sales growth sounds exciting, yet profit growth is only 7.17%. As Graham warned, sales growth without commensurate earnings growth is often just growth in effort. The balance sheet is acceptable: debt/equity of 0.48, Piotroski F-Score of 7, and promoter holding of 74.24% aligning owners with management. The 32.48% ROE and 34.20% ROCE are impressive numbers. But at ₹225.95, the market is paying 8.73 times book for these returns. That is not a Graham-style margin of safety. A P/E of 16.73 is not extreme, and the stated PEG of 0.99 looks tempting—but using the trailing profit growth of 7.17%, the PEG is closer to 2.33. The 0.00% dividend yield means the investor depends entirely on capital gains. I would not call this a wonderful business; it is a decently managed, financially sound but commodity-exposed operation. FairStock’s 'Steady' score of 57/100 seems fair: not terrible, but hardly a compounding machine. If margins stay under pressure, today’s high ROE may not survive. I would want proof that profit growth has caught up with sales before treating this as a value buy.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer