Aayush Wellness Limited

Consumer Defensive — Packaged Foods · BSE

₹25.28+₹0.36 (+1.44%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Aayush Wellness Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Aayush Wellness Limited engages in the development, production, marketing and distribution of health and wellness products in India.

IndustryPackaged Foods

SectorConsumer Defensive

Employees6

Annual revenue₹155 Cr

How does it make money?

Turns over ₹155 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 6 employees supports ₹25.91 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹25.91 Cr

Who are its competitors?

The closest listed comparisons in its industry are NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD, TATA CONSUMER PRODUCT LTD, DABUR INDIA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 25.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE51.0%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +1819% while net margin moved -160% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+1819%

Margin effect-160%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.84 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

68/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

65/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

28.7x

2Y Median

97.0x

28 monthly readings · mean 432.6x · range 29.3x–1827.7x

Sector Median

51.7x

median of 4 sector peers

🟢Current valuation is approximately 70% below its 2y median of 97.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 44% below the peer median of 51.7x.

vs. its own history

Cheap

97.0x median over 28 months · -70%

vs. sector peers

Cheap

51.7x median of 4 peers · -44%

vs. generic bands

Fair

15x–35x

EV/EBITDA

28.3x

PEG

1.38

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from -1.3% to 2.9% over 3 years.
Return on equity is rising
ROE has improved from -7.8% to 32.5%.
Return on capital is rising
ROCE has improved from -6.4% to 25.9%.
High return on capital employed
ROCE of 25.9% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 25.9% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from -1.3% to 2.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 70% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 44% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 126% a year✓ 167.7% CAGR
Latest reported year was 46.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 1%✓ 2.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 23%✓ 25.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹123 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

28.7x

Fair

Fairly valued against the generic band

P/B Ratio

9.70x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹0.88

Profitable

Profitable on a per-share basis

ROE

32.5%

Strong

Strong capital efficiency

ROCE

25.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.39x

Low

Conservative leverage

Revenue Growth (YoY)

46.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

20.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.20%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

2.3%

Weak

Thin margins leave little room for error

Net Margin

2.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

14.33

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.84

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

24.0 / 24.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

62.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹8 Cr	₹1 Cr	₹73 Cr	₹155 Cr	+167.7%
EBITDA	-₹0 Cr	₹1 Cr	₹3 Cr	₹4 Cr	—
EBITDA Margin	-1.3%	98.5%	4.6%	2.9%	—
PAT (Net Profit)	-₹0 Cr	₹1 Cr	₹3 Cr	₹4 Cr	—
EPS	₹-0.07	₹0.12	₹0.69	₹0.82	—
ROE	-7.8%	11.6%	40.6%	32.5%	—
ROCE	-6.4%	12.0%	40.5%	25.9%	—
Total Debt	—	—	₹0 Cr	₹5 Cr	—
Free Cash Flow	₹5 Cr	-₹1 Cr	₹0 Cr	-₹1 Cr	—

🟢 Revenue has grown at 167.7% a year over 3 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹4 Cr.

🟢 EBITDA Margin has risen from -1.3% to 2.9% over 3 years (+4.1 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹4 Cr.

🟢 EPS has turned positive, from ₹-0.07 to ₹0.82.

🟢 ROE has risen from -7.8% to 32.5% over 3 years (+40.3 pts).

🟢 ROCE has risen from -6.4% to 25.9% over 3 years (+32.4 pts).

🔴 Free Cash Flow has turned negative, from ₹5 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹18 Cr

Total Liabilities

₹5 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

54.8%

Corporate Actions

Dividend Rate

₹0.05

Ex-Dividend Date

05 Aug 2025

Peer Comparison

Company	P/E	ROE
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%
TATA CONSUMER PRODUCT LTD	59.3x	7.5%
DABUR INDIA LTD	34.7x	17.2%

Recent News

2 mixed4 general

Aayush Wellness (BSE:539528) - Stock Analysis

Simply Wall Street, 13 Oct

Half Yearly Results, Half yearly Earnings for Aayush Food & Herbs

The Economic Times, 16 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Compare MODELLA WOOLLENS with

Equitymaster, 16 Oct

Aayush Wellness Ltd is Rated Sell

MarketsMojo, 16 Oct

Compare with

Equitymaster, 17 Oct

Aayush Wellness Share Price rises 9.18%: valuation view

Univest, 10 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability

MiddlingBusiness Quality · Valuation

WeakRisk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑