Tikamgarh's dal mill story — ₹44 Cr → ₹104 Cr in one year, completely debt-free
₹104 Cr revenue, 141% growth, 7x PAT jump, ZERO debt, 30% ROE — from food grain trader to automated dal processor. But negative ₹3.76 Cr OCF, related party acquisition, and promoter competing businesses need watching.
The business
MRP Agro processes urad dal in a 30,000 MT/year automated dal mill (AGI Milltec, Canadian machinery) in Tikamgarh, MP. Brands: Janm, JK, Black Diamond, Sikka. 96,644 sq.ft. government land on 99-year lease (only 29% used). Now building a ₹19.87 Cr flour mill (160 TPD) — completion Dec 2026.
Why this business matters
Dal mill inflection point — AGI Milltec automated mill commissioned April 2024. Revenue jumped 141% to ₹104 Cr. PAT surged 7x to ₹6.90 Cr. Processing margins (10.5%) vs trading margins (1.6%)
Completely debt-free, cash rich — Zero borrowings. ₹10.22 Cr cash + FDs on ₹34.79 Cr assets. ROE 30%, ROCE 25%. 40% MSME subsidy + ₹3.36 Cr government rebate
Flour mill doubles capacity — ₹19.87 Cr project: 160 TPD Roller Flour Mill + 60 TPD Atta Chakki. Dec 2026 completion. 71% of government land still available for expansion
The moat
Reality check
Promoter competing businesses — no non-competes — Jain Enterprises, Sunrise Enterprises, MRP Agro Distributors HUF operate in overlapping segments. PRM Tradelink (₹5.61 Cr) is a related party acquisition
Negative OCF: -₹3.76 Cr despite ₹6.90 Cr PAT — Working capital buildup (inventories +₹6.66 Cr, receivables +₹5.44 Cr) consumed all operating cash. Must normalize in FY26
Warrants only to promoters — 3,91,730 warrants at ₹130 exclusively to promoter group (₹5.09 Cr). No external investor validation. Dilutive to public shareholders
Commodity margins can swing wildly — EBITDA margin was 1.6% in FY23 vs 10.5% in FY25. Pulse prices linked to monsoon, MSP, imports. Single location (Tikamgarh MP)
Exit Trigger
Exit if OCF remains negative for another full year post dal mill stabilization, or if new related party transactions emerge without clear business justification, or if EBITDA margin drops below 5% signaling commodity margin compression
The verdict
Genuine transformation from food grain trader to automated dal processor — 141% revenue growth, 7x PAT jump, completely debt-free with 30% ROE. Dal mill commissioning (April 2024) was a real inflection point. Government subsidies (40% MSME + ₹3.36 Cr rebate) reduce effective capex. Flour mill expansion provides clear growth runway. But negative OCF, promoter competing businesses without non-competes, related party acquisition, and commodity margin volatility are real concerns.
Watch For
OCF turning positive in FY26 as working capital normalizes, flour mill construction timeline vs December 2026 target, PRM Tradelink integration and intercompany transactions, EBITDA margin sustainability (10.5% may not be the norm), government subsidy realization, and warrant conversion by promoters.
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Disclaimer: For educational purposes only. Not SEBI-registered. Author may hold positions in stocks discussed. Not a buy/sell/hold recommendation. Do your own due diligence.
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