Anjani Foods Limited

Consumer Defensive — Grocery Stores · BSE

₹16.00₹0.00 (0.00%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Anjani Foods Limited produces and sells bakery products in India. The company offers artisanal cakes, cookies, desserts, pastries, breads, snacks and savories, beverages, appetizers, light meals, and other bakery essentials under the Fresh Choice brand.

IndustryGrocery Stores

SectorConsumer Defensive

Employees130

Annual revenue₹63 Cr

How does it make money?

Turns over ₹63 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 130 employees supports ₹48.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹48.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES 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?Little sign of one

Returns on capital of 5.7% 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.

Peer median ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +28% while net margin moved -73% 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+28%

Margin effect-73%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ ROE of 2.1% is weak
✗ ROE has fallen by 5.5 points over the period

Quality vs. Valuation

Company Quality

39/ 100

Weak

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

Valuation

34/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

100.0x

3Y Median

76.7x

40 monthly readings · mean 75.6x · range 25.5x–146.8x

Sector Median

43.3x

median of 4 sector peers

⚠️Current valuation is approximately 30% above its 3y median of 76.7x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 131% above the peer median of 43.3x.

vs. its own history

Expensive

76.7x median over 40 months · +30%

vs. sector peers

Expensive

43.3x median of 4 peers · +131%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

13.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 183% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 7.5% to 2.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 8.6% to 5.7% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 1 high · 4 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.8x — little room if earnings dip.
🟡Debt is increasingFinancial
Total debt is up 31% over 3 years.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 3.3x to 1.8x.
🟡Profit is decliningFinancial
Net profit is down 66% over 3 years.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.66 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

The price already assumes success
The stock trades 30% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 7.5% to 2.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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

1EBITDA margin holds above 4%✓ 6.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✗ 1.8x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 7% a year✓ 8.7% CAGR
Latest reported year was -7.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

4 / 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

3 good · 4 neutral · 4 weak

Market Cap

₹45 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

100.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.92x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.16

Profitable

Profitable on a per-share basis

ROE

2.1%

Weak

Weak capital efficiency

ROCE

5.7%

Weak

Low return on total capital employed

Debt/Equity

0.68x

Moderate

Moderate leverage

Revenue Growth (YoY)

-7.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

500.0%

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

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

2.1%

Weak

Thin margins leave little room for error

Net Margin

0.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.66

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.82

Market-like

Moves roughly in line with the market

52W Range Position

17%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

16.7 / 17.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹49 Cr	₹52 Cr	₹60 Cr	₹63 Cr	+8.7%
EBITDA	₹3 Cr	₹4 Cr	₹4 Cr	₹4 Cr	+5.4%
EBITDA Margin	7.1%	8.1%	7.5%	6.5%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹1 Cr	₹0 Cr	-30.0%
EPS	₹0.35	₹0.48	₹0.51	₹0.12	-30.0%
ROE	7.5%	9.3%	9.0%	2.1%	—
ROCE	8.6%	9.3%	8.7%	5.7%	—
Total Debt	₹9 Cr	₹9 Cr	₹12 Cr	₹11 Cr	+9.5%
Free Cash Flow	₹0 Cr	₹0 Cr	-₹1 Cr	₹1 Cr	+41.4%

🟢 Revenue has grown at 8.7% a year over 3 years.

🟢 EBITDA has grown at 5.4% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 6.5% over 3 years.

🔴 PAT (Net Profit) has shrunk at 30.0% a year over 3 years.

🔴 EPS has shrunk at 30.0% a year over 3 years.

🔴 ROE has fallen from 7.5% to 2.1% over 3 years (-5.5 pts).

🔴 ROCE has fallen from 8.6% to 5.7% over 3 years (-2.9 pts).

🔴 Total Debt has grown at 9.5% a year over 3 years.

🟢 Free Cash Flow has grown at 41.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹39 Cr

Total Liabilities

₹24 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.0%

Corporate Actions

Ex-Dividend Date

20 Sept 2021

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

1 positive5 general

Anjani Foods Ltd is Rated Strong Sell

MarketsMojo, 16 Oct

Anjani Foods AGM resolutions pass with 100% valid vote support

scanx.trade, 29 Sept

Anjani Foods Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Anjani Foods Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Anjani Foods FY26 Results: Revenue up 3.93%, net profit drops 67%

scanx.trade, 07 SeptResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Anjani Foods Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Watch Items

Revenue growth is negative (-7.2%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x · see Key things to watch ↑