Ajooni Biotech Limited

Consumer Defensive — Packaged Foods · NSE

₹3.02−₹0.04 (−1.31%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, 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, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Ajooni Biotech Limited provides animal nutrition and animal healthcare solutions in India. It offers compound cattle feed, cattle feed chips, came feed, cotton oil cake, mustard oil cake, and a range of feed supplements to support the nutritional requirements of livestock.

IndustryPackaged Foods

SectorConsumer Defensive

Employees182

Annual revenue₹182 Cr

How does it make money?

Turns over ₹182 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 182 employees supports ₹1.00 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin4.6%

Net margin2.4%

Revenue / employee₹1.00 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.

NESTLE INDIA LIMITEDP/E 59.8x · ROE 79.9%

BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%

TATA CONSUMER PRODUCT LTDP/E 59.3x · ROE 7.5%

DABUR INDIA LTDP/E 34.7x · ROE 17.2%

What is its competitive advantage?Little sign of one

Returns on capital of 7.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE7.0%

ROE4.4%

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 +145% while net margin moved +57% 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+145%

Margin effect+57%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ ROE of 4.4% is weak

Quality vs. Valuation

Company Quality

58/ 100

Average

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

Valuation

84/ 100

Cheap

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

12.1x

3Y Median

20.8x

40 monthly readings · mean 18.8x · range 2.5x–40.6x

Sector Median

51.7x

median of 4 sector peers

🟢Current valuation is approximately 42% below its 3y median of 20.8x. 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 77% below the peer median of 51.7x.

vs. its own history

Cheap

20.8x median over 40 months · -42%

vs. sector peers

Cheap

51.7x median of 4 peers · -77%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

12.1x

P/B

0.57x

EV/EBITDA

8.3x

PEG

0.21

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Return on capital is rising
ROCE has improved from 4.7% to 7.0%.
Valuation below its historical average
At 12.1x the stock trades 42% below its own median of 20.8x.
Very low debt
Debt/Equity of 0.29x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 243% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Inventory building faster than sales
Inventory is up 464% against revenue growth of 145% — stock may not be moving.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 243% over 3 years, from ₹5 Cr to ₹18 Cr.
🔴Inventory building faster than salesFinancial
Inventory up 464% against revenue up 145% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹24 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 73% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 42% 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 77% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 26% a year✓ 34.8% CAGR
Latest reported year was 99.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 4.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹24 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 7.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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 · 2 neutral · 3 weak

Market Cap

₹52 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.1x

Cheap

Cheap against the generic band

P/B Ratio

0.57x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.25

Profitable

Profitable on a per-share basis

ROE

4.4%

Weak

Weak capital efficiency

ROCE

7.0%

Weak

Low return on total capital employed

Debt/Equity

0.29x

Low

Conservative leverage

Revenue Growth (YoY)

99.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

28.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹24 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹3.02

ROA

3.0%

Average

Average asset productivity

Operating Margin

1.8%

Weak

Thin margins leave little room for error

Net Margin

1.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.36

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.37

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

3.1 / 3.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

38.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹74 Cr	₹80 Cr	₹115 Cr	₹182 Cr	+34.8%
EBITDA	₹3 Cr	₹3 Cr	₹5 Cr	₹8 Cr	+40.1%
EBITDA Margin	4.1%	3.9%	4.2%	4.6%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹3 Cr	₹4 Cr	+56.6%
EPS	₹1.51	₹0.22	₹0.2	—	—
ROE	2.7%	5.1%	3.8%	4.7%	—
ROCE	4.7%	8.0%	5.2%	7.0%	—
Total Debt	₹5 Cr	₹2 Cr	₹2 Cr	₹18 Cr	+50.8%
Free Cash Flow	-₹8 Cr	₹17 Cr	-₹34 Cr	-₹24 Cr	—

🟢 Revenue has grown at 34.8% a year over 3 years.

🟢 EBITDA has grown at 40.1% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 4.6% over 3 years.

🟢 PAT (Net Profit) has grown at 56.6% a year over 3 years.

🟢 ROE has risen from 2.7% to 4.7% over 3 years (+2.0 pts).

🟢 ROCE has risen from 4.7% to 7.0% over 3 years (+2.3 pts).

🔴 Total Debt has grown at 50.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹120 Cr

Total Liabilities

₹29 Cr

Total Debt

₹18 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹6 Cr

Capex

-₹18 Cr

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

Why Is Ajooni Biotech Share Price Falling: Key Reasons and Investor Analysis 2026

Univest, 14 MayPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Ajooni Biotech Ltd is Rated Sell

MarketsMojo, 15 Oct

Ajooni Biotech to hold 16th AGM on July 29, 2026

scanx.trade, 01 Jul

Ajooni Biotech Limited's (NSE:AJOONI) Share Price Is Matching Sentiment Around Its Earnings

Simply Wall Street, 26 NovResults

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

Ajooni Biotech Ltd

Equitypandit, 10 Jan

Ajooni Biotech Share Price Forecast: 3 Year Outlook to 2030

Univest, 10 Jul

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟢Financial HealthStrong13/20

🟢GrowthStrong18.5/20

🔴ProfitabilityWeak4.5/15

🟢ValuationAttractive13.2/15

🔴RiskHigh4.4/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 26% a year34.8% CAGR
✓EBITDA margin holds above 3%4.6%
✗Debt / EBITDA stays below 2x2.1x
✗Free cash flow remains positive-₹24 Cr
✗ROCE stays above 8%7.0%