Annapurna Swadisht Limited

Consumer Defensive — Packaged Foods · NSE

₹121.80−₹1.31 (−1.06%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Reasonable but unspectacular business quality, with modest growth. 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

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Annapurna Swadisht Limited manufactures and sells food products in India. It offers potato chips, fryums, namkeen, extruded snacks, noodles, biscuits, candy, and sweets. The company was incorporated in 2015 and is based in Kolkata, India.

IndustryPackaged Foods

SectorConsumer Defensive

Employees637

Annual revenue₹520 Cr

How does it make money?

Turns over ₹520 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 637 employees supports ₹81.6 lakh of revenue a year, the signature of a people-led business.

EBITDA margin13.8%

Net margin5.8%

Revenue / employee₹81.6 lakh

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 13.2% 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.

ROCE13.2%

ROE9.2%

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 +225% while net margin moved +31% 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+225%

Margin effect+31%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.09 — historically steadier than the index
✗ 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

53/ 100

Average

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

Valuation

88/ 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

8.5x

3Y Median

41.1x

40 monthly readings · mean 43.8x · range 11.2x–90.4x

Sector Median

51.7x

median of 4 sector peers

🟢Current valuation is approximately 79% below its 3y median of 41.1x. 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 84% below the peer median of 51.7x.

vs. its own history

Cheap

41.1x median over 40 months · -79%

vs. sector peers

Cheap

51.7x median of 4 peers · -84%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

8.5x

P/B

0.75x

EV/EBITDA

7.0x

PEG

0.14

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 8.4% to 13.8% over 3 years.
Valuation below its historical average
At 8.5x the stock trades 79% below its own median of 41.1x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Debt is rising
Total debt is up 937% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on capital is falling
ROCE has declined from 17.5% to 13.2% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 355% against revenue growth of 225% — customers are taking longer to pay.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 937% over 3 years, from ₹24 Cr to ₹250 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 355% against revenue up 225% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 33% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 8.4% to 13.8%. 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 79% 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 84% 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?

The debt load needs earnings to hold up
Debt is 3.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 355% against revenue up 225%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.
Several serious flags at once
4 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 36% a year✓ 48.1% CAGR
Latest reported year was 1.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 13.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.5x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹113 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.9x
How much operating profit can fall before interest stops being comfortably covered.

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

4 good · 6 neutral · 1 weak

Market Cap

₹266 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.5x

Cheap

Cheap against the generic band

P/B Ratio

0.75x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹14.38

Profitable

Profitable on a per-share basis

ROE

9.2%

Moderate

Moderate capital efficiency

ROCE

13.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.69x

Moderate

Moderate leverage

Revenue Growth (YoY)

1.6%

Modest

Modest growth

Profit Growth (YoY)

27.5%

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

-₹113 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹121.8

Operating Margin

14.2%

Average

Average margins

Net Margin

6.2%

Average

Average bottom-line conversion

Current Ratio

1.43

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.09

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

128.0 / 139.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

28.8

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹160 Cr	₹265 Cr	₹408 Cr	₹520 Cr	+48.1%
EBITDA	₹13 Cr	₹27 Cr	₹46 Cr	₹72 Cr	+74.6%
EBITDA Margin	8.4%	10.3%	11.3%	13.8%	—
PAT (Net Profit)	₹7 Cr	₹13 Cr	₹22 Cr	₹30 Cr	+61.9%
EPS	₹4.36	₹7.05	₹10.84	—	—
ROE	12.0%	11.5%	7.2%	9.2%	—
ROCE	17.5%	18.7%	11.4%	13.2%	—
Total Debt	₹24 Cr	₹63 Cr	₹115 Cr	₹250 Cr	+118.1%
Free Cash Flow	-₹51 Cr	-₹72 Cr	-₹41 Cr	-₹113 Cr	—

🟢 Revenue has grown at 48.1% a year over 3 years.

🟢 EBITDA has grown at 74.6% a year over 3 years.

🟢 EBITDA Margin has risen from 8.4% to 13.8% over 3 years (+5.4 pts).

🟢 PAT (Net Profit) has grown at 61.9% a year over 3 years.

🔴 ROE has fallen from 12.0% to 9.2% over 3 years (-2.8 pts).

🔴 ROCE has fallen from 17.5% to 13.2% over 3 years (-4.3 pts).

🔴 Total Debt has grown at 118.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹629 Cr

Total Liabilities

₹298 Cr

Total Debt

₹250 Cr

Cash & Equivalents

₹15 Cr

Operating Cash Flow

-₹21 Cr

Capex

-₹93 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

3 mixed3 general

Compare with

Equitymaster, 18 Oct

Annapurna Swadisht (NSE:ANNAPURNA) Posted Healthy Earnings But There Are Some Other Factors To Be Aware Of

Simply Wall Street, 08 JunResults

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

Annapurna Swadisht Ltd. Stock News: Share price rises 9.08%

Univest, 06 AugPrice 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.

Annapurna Swadisht Ltd. Share Price Update: Top Decliner

Univest, 12 AugPrice 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.

Annapurna Swadisht to buy 75% stake in Andri Agro Foods for ₹150 million

Business Standard, 06 Jan

Fewer Investors Than Expected Jumping On Annapurna Swadisht Limited (NSE:ANNAPURNA)

Simply Wall Street, 30 Dec

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.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟡Business QualityAdequate9/20

🟡Financial HealthAdequate9.8/20

🟢GrowthStrong14.9/20

🔴ProfitabilityWeak6.2/15

🟢ValuationAttractive13.2/15

🔴RiskHigh4/10

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. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 36% a year48.1% CAGR
✓EBITDA margin holds above 12%13.8%
✗Debt / EBITDA falls below 3x3.5x
✗Free cash flow remains positive-₹113 Cr
✓Interest cover stays above 3x3.9x