Elfin Agro India Limited

Consumer Defensive — Packaged Foods · BSE

₹89.00₹0.00 (0.00%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

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

What does this company do?

Elfin Agro India Limited manufactures and sells processed wheat flour under the Shiv Nandi and ELFIN'S Shri Shyam BHOG brands in India.

IndustryPackaged Foods

SectorConsumer Defensive

Employees23

Annual revenue₹177 Cr

How does it make money?

Turns over ₹177 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 23 employees supports ₹7.69 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹7.69 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.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 20.1%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 20.1% against a peer median of 51.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE51.0%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +74% while net margin moved +83% 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+74%

Margin effect+83%

DalalBaazaar Score

60/ 100

Good

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
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

64/ 100

Average

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

Valuation

69/ 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

22.2x

Sector Median

51.7x

median of 4 sector peers

🟢Against its sector it trades 57% below the peer median of 51.7x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

51.7x median of 4 peers · -57%

vs. generic bands

Fair

15x–35x

EV/EBITDA

17.6x

PEG

0.47

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 3.1% to 5.4% over 3 years.
Debt is being paid down
Total debt is down 40% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
High return on capital employed
ROCE of 20.1% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 36.0% to 13.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 31.0% to 20.1% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 9.97x — earnings must service borrowings before shareholders see anything.
🔴Inventory building faster than salesFinancial
Inventory up 256% against revenue up 74% — stock may not be moving.
🟡Receivables growing faster than salesFinancial
Receivables up 98% against revenue up 74% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.1% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 3.1% to 5.4%. 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 40% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 57% 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?

Leverage amplifies any setback
Debt/Equity of 9.97x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 98% against revenue up 74%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 36.0% to 13.2%. 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.
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 15% a year✓ 20.4% CAGR
Latest reported year was 21.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 5.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹14 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 20.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

5 good · 4 neutral · 2 weak

Market Cap

₹173 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

22.2x

Fair

Fairly valued against the generic band

P/B Ratio

3.97x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.01

Profitable

Profitable on a per-share basis

ROE

20.1%

Strong

Strong capital efficiency

ROCE

20.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

9.97x

High

High leverage

Revenue Growth (YoY)

21.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

14.7%

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

-₹10 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

13.3%

Good

Assets are working hard

Operating Margin

4.3%

Weak

Thin margins leave little room for error

Net Margin

3.3%

Average

Average bottom-line conversion

Current Ratio

5.81

Comfortable

Healthy short-term liquidity

52W Range Position

71%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

88.1 / 89.9

Bearish alignment (short < long)

RSI (14)

43.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹101 Cr	₹124 Cr	₹146 Cr	₹177 Cr	+20.4%
EBITDA	₹3 Cr	₹6 Cr	₹8 Cr	₹10 Cr	+44.7%
EBITDA Margin	3.1%	4.9%	5.5%	5.4%	—
PAT (Net Profit)	₹2 Cr	₹4 Cr	₹5 Cr	₹6 Cr	+47.2%
EPS	₹0.93	₹1.89	₹2.59	—	—
ROE	36.0%	42.3%	36.6%	13.2%	—
ROCE	31.0%	52.1%	47.6%	20.1%	—
Total Debt	₹7 Cr	₹8 Cr	₹12 Cr	₹4 Cr	-15.6%
Free Cash Flow	-₹3 Cr	-₹0 Cr	-₹4 Cr	₹14 Cr	—

🟢 Revenue has grown at 20.4% a year over 3 years.

🟢 EBITDA has grown at 44.7% a year over 3 years.

🟢 EBITDA Margin has risen from 3.1% to 5.4% over 3 years (+2.3 pts).

🟢 PAT (Net Profit) has grown at 47.2% a year over 3 years.

🔴 ROE has fallen from 36.0% to 13.2% over 3 years (-22.7 pts).

🔴 ROCE has fallen from 31.0% to 20.1% over 3 years (-10.9 pts).

🟢 Total Debt has shrunk at 15.6% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹3 Cr to ₹14 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹52 Cr

Total Liabilities

₹9 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

₹15 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.8%

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

Elfin Agro India Limited Share Price

Upstox, 15 Oct

Elfin Agro shareholders approve variation in IPO proceeds utilisation

scanx.trade, 11 Oct

Elfin Agro India: IPO నిధుల వినియోగంలో మార్పు.. 100% ఓట్లతో ఆమోదం!

Whalesbook, 11 Oct

Elfin Agro India IPO Final Day Subscription Status: Issue Subscribed 1.35x, NII Leads Demand

HDFC Sky, 09 Mar

Elfin Agro India shares list flat at IPO price of Rs 47 on BSE SME platform

The Economic Times, 12 Mar

Elfin Agro India IPO opens today: Check GMP, subscription status, price band and other details

Livemint, 05 Mar

Watch Items

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

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Financial Health · Profitability · Valuation

WeakRisk

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.

All 5 tripwires holding · see Key things to watch ↑