Ceeta Industries Ltd.

Financial Services — Capital Markets · BSE

₹39.00+₹0.01 (+0.03%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a beta above 1.3, so it swings harder than the index.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

The 60-second version of Ceeta Industries Ltd. — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Ceeta Industries Ltd. manufactures and sells packaged food products in India. The company operates through two segments, Packaged Food Products and Other Operations.

IndustryCapital Markets

SectorFinancial Services

Employees58

Annual revenue₹21 Cr

How does it make money?

Turns over ₹21 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 58 employees supports ₹36.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹36.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO 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?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.7%

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 +438% while net margin moved -109% 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+438%

Margin effect-109%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Beta of 1.36 — amplifies market moves in both directions
✗ 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

63/ 100

Average

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

Valuation

26/ 100

Expensive

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

76.5x

1.3Y Median

23.8x

16 monthly readings · mean 40.4x · range 18.1x–100.0x

Sector Median

58.4x

median of 3 sector peers

⚠️Current valuation is approximately 222% above its 1.3y median of 23.8x. 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 31% above the peer median of 58.4x.

vs. its own history

Expensive

23.8x median over 16 months · +222%

vs. sector peers

Expensive

58.4x median of 3 peers · +31%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

27.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -7.4% to 10.7% over 3 years.
Return on equity is rising
ROE has improved from -4.9% to 2.1%.
Return on capital is rising
ROCE has improved from -1.9% to 4.2%.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 watch

🟡Interest coverage is deterioratingFinancial
Cover has fallen from 8.6x to 3.1x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -7.4% to 10.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 222% 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.
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 56% a year✓ 75.2% CAGR
Latest reported year was -19.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 10.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 2.1%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✓ 3.1x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 23.8x✗ 76.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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 · 3 neutral · 5 weak

Market Cap

₹57 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

76.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.02x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.51

Profitable

Profitable on a per-share basis

ROE

2.1%

Weak

Weak capital efficiency

ROCE

4.2%

Weak

Low return on total capital employed

Debt/Equity

0.16x

Low

Conservative leverage

Revenue Growth (YoY)

-19.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

52.4%

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 burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

10.4%

Average

Average margins

Net Margin

3.7%

Average

Average bottom-line conversion

Current Ratio

2.18

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.36

High swing

Swings more than the market in both directions

52W Range Position

42%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

37.6 / 39.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

50.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4 Cr	₹12 Cr	₹22 Cr	₹21 Cr	+75.2%
EBITDA	-₹0 Cr	-₹0 Cr	₹2 Cr	₹2 Cr	—
EBITDA Margin	-7.4%	-4.0%	11.0%	10.7%	—
PAT (Net Profit)	-₹1 Cr	-₹2 Cr	₹3 Cr	₹1 Cr	—
EPS	₹-0.88	₹-1.1	₹1.89	₹0.4	—
ROE	-4.9%	-6.5%	10.0%	2.1%	—
ROCE	-1.9%	-4.5%	15.4%	4.2%	—
Total Debt	₹12 Cr	₹13 Cr	₹5 Cr	₹4 Cr	-27.2%
Free Cash Flow	-₹18 Cr	-₹2 Cr	-₹1 Cr	-₹1 Cr	—

🟢 Revenue has grown at 75.2% a year over 3 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹2 Cr.

🟢 EBITDA Margin has risen from -7.4% to 10.7% over 3 years (+18.0 pts).

🟢 PAT (Net Profit) has turned positive, from -₹1 Cr to ₹1 Cr.

🟢 EPS has turned positive, from ₹-0.88 to ₹0.4.

🟢 ROE has risen from -4.9% to 2.1% over 3 years (+7.0 pts).

🟢 ROCE has risen from -1.9% to 4.2% over 3 years (+6.1 pts).

🟢 Total Debt has shrunk at 27.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹34 Cr

Total Liabilities

₹6 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

71.9%

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

2 positive1 mixed1 negative2 general

Ceeta Industries independent director Bal Krishna Bhalotia dies

scanx.trade, 03 Oct

Ceeta Industries Ltd. Peer Comparison – Compare with Others

Value Research, 29 Aug

Ceeta Industries publishes Q1FY27 unaudited results in newspapers

scanx.trade, 14 AugResults

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

Brady & Morris Engineering Company standalone net profit declines 50.00% in the June 2026 quarter

Business Standard, 13 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Danlaw Technologies India standalone net profit rises 46.32% in the March 2026 quarter

Business Standard, 28 MayResults

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

Trishakti Industries Q1FY27 Results: Net profit up 372% YoY to ₹4.30 crore

scanx.trade, 25 SeptResults

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

Watch Items

Revenue growth is negative (-19.7%) on the latest reported period — check if this is one-off or a trend.
This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability

WeakValuation · 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 of 5 tripwires tripped — Return on equity stays above 8%; Valuation vs its own median of 23.8x · see Key things to watch ↑