One of the micro-cap stocks engaged in the production and sale of edible oils, animal feed ingredients, and soy value-added products, operating both domestically and internationally. The stock has hit 5 percent after expanding into bio-energy with the acquisition of 51 percent stake in Sharaad KN Bio-Organics Private Limited
Stock Price Movement
With a market capitalization of Rs. 714.97 crores, the shares of KN Agri Resources Limited’s stock surged by 5 percent, reaching an upper circuit of Rs. 288.95 per share on Thursday, up from its previous closing price of Rs. 275.20 per share. Since then, the stock has retreated and is currently trading at Rs. 286 per equity share
What Happened
KN Agri Resources Limited has recently acquired a 51 percent stake in Sharaad KN Bio-Organics Private Limited, a subsidiary with an authorized capital of Rs. 1 crore. This acquisition is part of KN Agri’s strategy to expand into agri-processing and bio-energy.
The subsidiary company operates a unit with a capacity of 3,300 TPD sugarcane crushing and 300 KLPD multi-feed ethanol production. This move will further diversify KN Agri’s business, which aligns with its core focus on the agribusiness sector.
Operations and Products
KN Agri operates in two main segments, such as agri-commodities and power generation. It offers edible oils (soya bean, refined, and cottonseed oils), animal feed ingredients (soya de-oiled cakes and high-protein soya meals), flour milling (wheat flour and semolina), and agro-commodities trading (maize, gram, pulses, sugar, and wheat).
The company also operates wind energy plants with a 4.60 MW capacity. Its products are marketed under the brands CLASSIC and KHANPAN.
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Recent quarter results and ratios
KN Agri Resources Limited’s revenue has increased from Rs. 637 crore in H1 FY24 to Rs. 754 crore in H1 FY25, which has grown by 18.37 percent. The net profit of KN Agri Resources Limited has also grown by 16.67 percent, from Rs. 12 crore in H1 FY24 to Rs. 14 crore in H1 FY25.
KN Agri Resources Limited’s revenue and net profit have grown at a CAGR of 18.76 percent and 24.27 percent, respectively, over the last four years.
In terms of return ratios, the company’s ROCE and ROE should be 13 percent and 10.4 percent, respectively. The debt-to-equity ratio of the company is to be 0.01x, which shows the company is almost debt-free. KN Agri Resources Limited’s EPS is to be Rs. 13.3.
Shareholding pattern
In September 2024, KN Agri Resources Limited had a majority stake held by the promoters at 73.66 percent, foreign institutional investors at 2.60 percent, domestic institutional investors at 2.04 percent, and the public at 21.70 percent.
Company Overview
KN Agri Resources Limited was incorporated in 1987 and headquartered in Mumbai. The company is an agro-based company specializing in edible oils, animal feed ingredients, and soy value-added products. Originally named Itarsi Oils & Flours Private Limited, it rebranded in November 2021. The company is also involved in power generation.
Written By – Nikhil Naik
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