Gourmet Gateway India Limited

Consumer Cyclical — Restaurants · BSE

₹10.90−₹0.27 (−2.42%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by moderate debt load, short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Gourmet Gateway India Limited operates in the food and beverage industry in India, Sri Lanka, and Maldives. It operates Asian cuisine restaurants under Kylin and Wanchai brands; coffee stores under Barista Coffee brand; and desserts under Drizzle & Dust brand.

IndustryRestaurants

SectorConsumer Cyclical

Employees3

Annual revenue₹189 Cr

How does it make money?

Turns over ₹189 Cr a year. Of every ₹100 of sales, about ₹-0 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 3 employees supports ₹62.95 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin17.0%

Net margin-0.2%

Revenue / employee₹62.95 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of 7.1% 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.

ROCE7.1%

ROE-0.7%

Peer median ROE25.9%

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 +212% while net margin moved -105% 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+212%

Margin effect-105%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 15.4 points over the period

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

39/ 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

181.7x

3Y Median

50.8x

40 monthly readings · mean 69.0x · range 19.2x–175.7x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 258% above its 3y median of 50.8x. 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 163% above the peer median of 69.2x.

vs. its own history

Expensive

50.8x median over 40 months · +258%

vs. sector peers

Expensive

69.2x median of 4 peers · +163%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

181.7x

P/B

2.93x

EV/EBITDA

7.5x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 34% over 3 years.
Cash generation is improving
Free cash flow is up 452% over 3 years.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 22.7% to 17.0% over 3 years.
Return on equity is falling
ROE has dropped from 14.6% to -0.7% — each rupee of shareholder capital earns less than it did.
Valuation above its historical average
At 181.7x the stock trades 258% above its own median of 50.8x.
Short-term liquidity is tight
Current ratio of 0.50 — near-term obligations exceed near-term assets.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.1x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.7 points, from 22.7% to 17.0%.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.50 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 34% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 22.7% to 17.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 258% 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.
Returns on shareholder capital are falling
ROE has dropped from 14.6% to -0.7%. 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.
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 35% a year✓ 46.1% CAGR
Latest reported year was 20.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 15%✓ 17.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✗ 1.1x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹22 Cr
Profit that never becomes cash eventually stops being profit.

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

4 good · 4 neutral · 3 weak

Market Cap

₹165 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

181.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.93x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.06

Profitable

Profitable on a per-share basis

ROE

-0.7%

Weak

Weak capital efficiency

ROCE

7.1%

Weak

Low return on total capital employed

Debt/Equity

1.19x

Moderate

Moderate leverage

Revenue Growth (YoY)

20.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

79.4%

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

₹22 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹10.9

Operating Margin

2.4%

Weak

Thin margins leave little room for error

Net Margin

0.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.50

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.96

Market-like

Moves roughly in line with the market

52W Range Position

39%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

10.7 / 11.6

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	₹61 Cr	₹143 Cr	₹162 Cr	₹189 Cr	+46.1%
EBITDA	₹14 Cr	₹29 Cr	₹24 Cr	₹32 Cr	+32.6%
EBITDA Margin	22.7%	20.5%	14.9%	17.0%	—
PAT (Net Profit)	₹3 Cr	₹5 Cr	-₹2 Cr	-₹0 Cr	—
EPS	₹0.3	₹0.36	₹-0.17	₹-0.03	—
ROE	14.6%	8.5%	-3.6%	-0.7%	—
ROCE	7.9%	15.4%	3.8%	7.1%	—
Total Debt	₹121 Cr	₹78 Cr	₹98 Cr	₹80 Cr	-13.0%
Free Cash Flow	₹4 Cr	₹14 Cr	₹17 Cr	₹22 Cr	+76.7%

🟢 Revenue has grown at 46.1% a year over 3 years.

🟢 EBITDA has grown at 32.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 22.7% to 17.0% over 3 years (-5.7 pts).

🔴 PAT (Net Profit) has turned negative, from ₹3 Cr to -₹0 Cr.

🔴 EPS has turned negative, from ₹0.3 to ₹-0.03.

🔴 ROE has fallen from 14.6% to -0.7% over 3 years (-15.4 pts).

🟡 ROCE has held roughly flat at 7.1% over 3 years.

🟢 Total Debt has shrunk at 13.0% a year over 3 years.

🟢 Free Cash Flow has grown at 76.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹189 Cr

Total Liabilities

₹122 Cr

Total Debt

₹80 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹30 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.6%

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

2 mixed4 general

Gourmet Gateway India Ltd is Rated Strong Sell

MarketsMojo, 17 Oct

Boutonniere Hospitality Private Limited announced that it has received INR 7.800876 million in funding from Gourmet Gateway India Limited

www.marketscreener.com, 16 Oct

Gourmet Gateway India Ltd increases stake in Boutonniere Hospitality Pvt Ltd

EquityBulls, 16 Oct

Gourmet Gateway India discloses voting results for 43rd AGM

scanx.trade, 01 OctResults

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

Gourmet Gateway India Ltd. Lower Circuit Streak: Day 2 Price and Data

Univest, 30 Sept

Gourmet Gateway India files Q1FY27 un-audited results with BSE

scanx.trade, 15 AugResults

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

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate9/20

🟡Financial HealthAdequate10.1/20

🟢GrowthStrong13/20

🔴ProfitabilityWeak3.8/15

🔴ValuationDemanding4.9/15

🔴RiskHigh3.6/10

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

This thesis breaks if

✓Revenue growth stays above 35% a year46.1% CAGR
✓EBITDA margin holds above 15%17.0%
✗Debt / EBITDA stays below 2x2.5x
✗Interest cover stays above 3x1.1x
✓Free cash flow remains positive₹22 Cr