Aveer Foods Limited

Consumer Defensive — Packaged Foods · BSE

₹553.00−₹5.20 (−0.93%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, 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, though profits are falling even as sales grow. Debt is 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 Aveer Foods Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Aveer Foods Limited manufactures and sells processed foods. The company was incorporated in 2019 and is based in Pune, India.

IndustryPackaged Foods

SectorConsumer Defensive

Annual revenue₹143 Cr

How does it make money?

Turns over ₹143 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation.

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?Little sign of one

Returns on capital of 10.7% 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 +47% while net margin moved +137% 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+47%

Margin effect+137%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ 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

54/ 100

Average

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

Valuation

48/ 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

63.9x

3Y Median

169.9x

40 monthly readings · mean 146.3x · range 52.3x–255.3x

Sector Median

51.7x

median of 4 sector peers

🟢Current valuation is approximately 62% below its 3y median of 169.9x. 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 24% above the peer median of 51.7x.

vs. its own history

Cheap

169.9x median over 40 months · -62%

vs. sector peers

Expensive

51.7x median of 4 peers · +24%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

27.2x

PEG

1.24

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 3.6% to 6.4% over 3 years.
Debt is being paid down
Total debt is down 64% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 5.57x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 1037% against revenue up 47% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 3.6% to 6.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 64% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 62% 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.
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?

Leverage amplifies any setback
Debt/Equity of 5.57x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 1037% against revenue up 47%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 24% above the peer median. That premium needs a reason that persists, or it closes.
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 10% a year✓ 13.6% CAGR
Latest reported year was 32.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 6.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 10.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

2 good · 4 neutral · 5 weak

Market Cap

₹248 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

63.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹8.66

Profitable

Profitable on a per-share basis

ROE

7.0%

Weak

Weak capital efficiency

ROCE

10.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

5.57x

High

High leverage

Revenue Growth (YoY)

32.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-9.6%

Falling

Profits are shrinking

Dividend Yield

0.05%

Modest

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

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.59

Comfortable

Healthy short-term liquidity

52W Range Position

26%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

588.2 / 577.2

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

25.3

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹98 Cr	₹96 Cr	₹109 Cr	₹143 Cr	+13.6%
EBITDA	₹3 Cr	₹6 Cr	₹8 Cr	₹9 Cr	+38.1%
EBITDA Margin	3.6%	5.9%	7.3%	6.4%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹4 Cr	₹4 Cr	+51.6%
EPS	₹2.54	₹3.11	₹9.78	₹8.59	+50.1%
ROE	6.3%	7.2%	14.1%	7.0%	—
ROCE	11.9%	12.3%	14.9%	10.7%	—
Total Debt	₹8 Cr	₹5 Cr	₹2 Cr	₹3 Cr	-29.0%
Free Cash Flow	₹2 Cr	₹8 Cr	₹5 Cr	-₹0 Cr	—

🟢 Revenue has grown at 13.6% a year over 3 years.

🟢 EBITDA has grown at 38.1% a year over 3 years.

🟢 EBITDA Margin has risen from 3.6% to 6.4% over 3 years (+2.8 pts).

🟢 PAT (Net Profit) has grown at 51.6% a year over 3 years.

🟢 EPS has grown at 50.1% a year over 3 years.

🟡 ROE has held roughly flat at 7.0% over 3 years.

🔴 ROCE has fallen from 11.9% to 10.7% over 3 years (-1.3 pts).

🟢 Total Debt has shrunk at 29.0% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹2 Cr to -₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹69 Cr

Total Liabilities

₹18 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.9%

Corporate Actions

Dividend Rate

₹0.25

Ex-Dividend Date

22 Sept 2026

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

6 general

Aveer Foods Lower Circuit Today: Price, Data and Peers

Univest, 15 Oct

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

Value Research, 30 Aug

Aveer Foods Ltd. Upper Circuit Streak: Day 2 Price and Data

Univest, 23 Sept

Aveer Foods Limited Receives BSE Trading Approval for 226,087 Equity Shares Issued to Promoter

scanx.trade, 24 Mar

Aveer Foods Ltd. Upper Circuit Today: Price, Data and Peers

Univest, 22 Sept

Aveer Foods Limited Share Price

Upstox, 26 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
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

StrongGrowth

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Profitability · Risk

Points for each in the Score ↑

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.

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