India, Sept. 2 -- Godrej Agrovet's Oil Palm business is emerging as one of the company's most significant long-term value drivers, with management pursuing a combination of acreage expansion, plantation maturation, operating efficiencies and downstream value addition. The segment reported strong growth in Q1 FY27, with revenue increasing 28.9% year-on-year and segment results rising 14.4%.

The investment thesis became interesting when Kotak Institutional Equities highlighted Oil Palm as a potential "hidden gem" stock and mentioned that even the standalone business might have been worth more than the market cap of Godrej Agrovet Ltd. In fact, Kotak has increased its valuation multiple on the segment from 15x EBITDA to 18x EBITDA.

The b...