Flora Corporation Limited

Consumer Defensive — Farm Products · BSE

₹5.98+₹0.28 (+4.91%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. Whether sales start growing again is 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 Flora Corporation Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Flora Corporation Limited engages in the marine and fisheries business in India. It also deals in dairy and scrap products, as well as other household products.

IndustryFarm Products

SectorConsumer Defensive

Employees62

Annual revenue₹85 Cr

How does it make money?

Turns over ₹85 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹0 left at the operating level before interest, tax and depreciation. Each of its 62 employees supports ₹1.36 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.36 Cr

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 6.1% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +128% while net margin moved +58% 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+128%

Margin effect+58%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 6.1% is below 10% — capital is not working hard
✓ ROCE has improved by 3.3 points over the period — returns are strengthening
✗ EBITDA margin of 0.4% is thin — little cushion if costs rise
✗ The business is lossmaking at the net level
• Revenue has compounded at 31.7% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

58/ 100

Average

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

Valuation

44/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

9.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Cash generation is improving
Free cash flow is up 506% over 3 years.
Return on equity is rising
ROE has improved from 2.0% to 6.1%.
Return on capital is rising
ROCE has improved from 2.8% to 6.1%.
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

1 item require attention · 1 high

🔴Inventory building faster than salesFinancial
Inventory up 1078% against revenue up 128% — stock may not be moving.

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?

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 24% a year✓ 31.7% CAGR
Latest reported year was -35.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -2%✓ 0.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 6.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ 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

₹5 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

1.02x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.25

Loss-making

Negative earnings per share — the business is losing money

ROE

6.1%

Weak

Weak capital efficiency

ROCE

6.1%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-35.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

199.0%

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

-7.5%

Weak

Thin margins leave little room for error

Net Margin

-0.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.40

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.49

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

6.3 / 6.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

35.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹37 Cr	₹145 Cr	₹148 Cr	₹85 Cr	+31.7%
EBITDA	₹0 Cr	₹1 Cr	₹0 Cr	₹0 Cr	+35.4%
EBITDA Margin	0.3%	0.4%	0.1%	0.4%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+53.4%
EPS	₹0.1	₹0.44	₹0.12	₹0.36	+53.3%
ROE	2.0%	8.2%	2.2%	6.1%	—
ROCE	2.8%	11.0%	3.4%	6.1%	—
Free Cash Flow	₹0 Cr	₹0 Cr	₹0 Cr	₹1 Cr	+82.3%

🟢 Revenue has grown at 31.7% a year over 3 years.

🟢 EBITDA has grown at 35.4% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 0.4% over 3 years.

🟢 PAT (Net Profit) has grown at 53.4% a year over 3 years.

🟢 EPS has grown at 53.3% a year over 3 years.

🟢 ROE has risen from 2.0% to 6.1% over 3 years (+4.1 pts).

🟢 ROCE has risen from 2.8% to 6.1% over 3 years (+3.3 pts).

🟢 Free Cash Flow has grown at 82.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹18 Cr

Total Liabilities

₹13 Cr

Total Debt

—

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

49.3%

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

Compare with VINTRON INFORM

Equitymaster, 26 Sept

KKR Explores $10B Sale of Flora Food Group After Ditching Plant-Based Promise

Green Queen Media, 30 Apr

Flora Growth Corp. Announces Withdrawal of Proposed Public Offering

Yahoo Finance, 28 Jan

Noble Polymers standalone net profit rises 676.92% in the June 2026 quarter

Business Standard, 14 AugResults

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

ZeroStack (Nasdaq:ZSTK) - Stock Analysis

Simply Wall Street, 04 May

Dissent rights in Canadian M&A transactions | Canada | Global law firm

Norton Rose Fulbright, 20 May

Watch Items

Revenue growth is negative (-35.8%) on the latest reported period — check if this is one-off or a trend.
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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingValuation

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. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 4 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑