Gokul Agro Resources Ltd is Rated Hold

Current Rating and Its Significance

The 'Hold' rating assigned to Gokul Agro Resources Ltd indicates a balanced outlook for investors. It suggests that while the stock is not currently a strong buy, it also does not warrant a sell recommendation. Investors should consider maintaining their existing positions and monitor the company’s performance closely. This rating reflects a combination of factors including the company’s quality, valuation, financial trend, and technical indicators.

Quality Assessment

As of 24 February 2026, Gokul Agro Resources Ltd exhibits an average quality grade. The company maintains a low debt-to-equity ratio, effectively at zero, which underscores a conservative capital structure and limited financial risk. This prudent approach to leverage supports operational stability and reduces vulnerability to interest rate fluctuations or credit market tightening. Additionally, the company has demonstrated consistent profitability, declaring positive results for eight consecutive quarters, which is a testament to its operational resilience in the edible oil sector.

Valuation Perspective

The valuation grade for Gokul Agro Resources Ltd is fair, reflecting a stock price that trades at a premium relative to its peers. The company’s price-to-book value stands at 4.2, which is above the sector average, indicating that the market prices in expectations of sustained growth. The return on equity (ROE) is a robust 24.2%, signalling efficient utilisation of shareholder funds. Furthermore, the price-to-earnings-to-growth (PEG) ratio is 0.7, suggesting that the stock’s price growth is reasonable in relation to its earnings growth, which is a positive sign for value-conscious investors.

Financial Trend and Growth Metrics

Currently, the company’s financial metrics indicate strong growth momentum. Net sales for the latest six months reached ₹12,952.44 crores, growing at an impressive annual rate of 32.19%. Operating profit has expanded even more rapidly, at 41.52% annually, highlighting effective cost management and margin improvement. Profit after tax (PAT) for the same period stands at ₹178.85 crores, reflecting a growth rate of 24.22%. Earnings per share (EPS) for the quarter peaked at ₹5.27, reinforcing the company’s profitability trajectory. Over the past year, the stock has delivered a return of 23.46%, closely aligned with the 24.1% rise in profits, underscoring a healthy correlation between earnings growth and market performance.

Technical Indicators

The technical grade for Gokul Agro Resources Ltd is mildly bullish. The stock has shown positive momentum over the short term, with a one-month gain of 12.35% and a one-week increase of 4.59%. However, it has experienced some volatility, including a three-month decline of 12.05% and a year-to-date drop of 4.13%. The one-day change as of 24 February 2026 was a slight decrease of 1.18%. These mixed signals suggest that while the stock has underlying strength, investors should be cautious of short-term fluctuations and consider technical trends alongside fundamental analysis.

Market Position and Promoter Confidence

Gokul Agro Resources Ltd holds a significant position in the edible oil sector, with a market capitalisation of approximately ₹5,046 crores, making it the second largest company in the sector after Gujarat Ambuja Exports. It accounts for 23.75% of the sector’s market share and generates annual sales amounting to 64.01% of the industry total, at ₹23,338.94 crores. Promoter confidence remains high, with promoters increasing their stake by 0.57% in the previous quarter to hold 74.24% of the company. This increase signals strong belief in the company’s future prospects and aligns management interests with those of shareholders.

Implications for Investors

For investors, the 'Hold' rating on Gokul Agro Resources Ltd suggests a cautious but optimistic stance. The company’s solid financial health, consistent growth, and strong promoter backing provide a foundation for steady performance. However, the premium valuation and some technical volatility imply that investors should carefully weigh entry points and monitor market conditions. The stock may be suitable for those seeking exposure to the edible oil sector with moderate risk tolerance and a medium-term investment horizon.

Summary of Key Metrics as of 24 February 2026

To summarise, the latest data shows:

• Market Capitalisation: ₹5,046 crores (smallcap segment)
• Net Sales (latest six months): ₹12,952.44 crores, growing at 32.19% annually
• Operating Profit Growth: 41.52% annually
• Profit After Tax (PAT): ₹178.85 crores, up 24.22%
• Earnings Per Share (EPS): ₹5.27 for the latest quarter
• Return on Equity (ROE): 24.2%
• Price to Book Value: 4.2
• PEG Ratio: 0.7
• Stock Returns: 1 Year +23.46%, 1 Month +12.35%, YTD -4.13%
• Promoter Holding: 74.24%, increased by 0.57% last quarter

These figures collectively underpin the 'Hold' rating, reflecting a company with strong fundamentals and growth prospects, balanced by valuation considerations and market dynamics.

Conclusion

Gokul Agro Resources Ltd’s current 'Hold' rating by MarketsMOJO, last updated on 07 July 2025, is supported by its solid financial performance, prudent capital structure, and positive market position as of 24 February 2026. Investors should view this rating as an indication to maintain their holdings while staying alert to market developments and company updates. The stock’s fair valuation and mild technical bullishness suggest potential for gains, but also warrant careful monitoring to optimise investment timing.

Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →