Grameva Limited

Consumer Defensive — Farm Products · BSE

₹79.77+₹7.25 (+10.00%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Grameva Limited engages in the trading of agro products in India. The company also produces, stores, and markets various agro products. In addition, the company trades in jute products.

IndustryFarm Products

SectorConsumer Defensive

Employees19

Annual revenue₹83 Cr

How does it make money?

Turns over ₹83 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 19 employees supports ₹4.35 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.35 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?Some evidence

ROCE of 33.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 +238% while net margin moved +426% 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+238%

Margin effect+426%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.05 — historically steadier than the index
✗ 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

70/ 100

Good

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

Valuation

81/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

13.5x

3Y Median

63.5x

40 monthly readings · mean 72.5x · range 12.4x–179.9x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 79% below its 3y median of 63.5x. 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 69% below the peer median of 43.3x.

vs. its own history

Cheap

63.5x median over 40 months · -79%

vs. sector peers

Cheap

43.3x median of 4 peers · -69%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.9x

PEG

0.08

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 2.9% to 6.4% over 3 years.
Return on equity is rising
ROE has improved from 2.3% to 26.9%.
Return on capital is rising
ROCE has improved from 6.4% to 33.9%.
High return on capital employed
ROCE of 33.9% 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 Attention0

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

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 207% over 3 years, from ₹3 Cr to ₹10 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹9 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 33.9% 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 2.9% to 6.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 79% 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.
Cheaper than its peers
It trades 69% 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?

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.
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 38% a year✓ 50.1% CAGR
Latest reported year was 558.7%. 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✗ -₹9 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 31%✓ 33.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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 · 5 neutral · 1 weak

Market Cap

₹38 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.5x

Cheap

Cheap against the generic band

P/B Ratio

3.41x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.89

Profitable

Profitable on a per-share basis

ROE

26.9%

Strong

Strong capital efficiency

ROCE

33.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.88x

Moderate

Moderate leverage

Revenue Growth (YoY)

558.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

3.7%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹9 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

1.9%

Weak

Thin margins leave little room for error

Net Margin

2.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.31

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.05

Defensive

Steadier than the market

52W Range Position

49%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

77.2 / 83.5

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

48.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹24 Cr	₹37 Cr	₹41 Cr	₹83 Cr	+50.1%
EBITDA	₹1 Cr	₹1 Cr	₹2 Cr	₹5 Cr	+95.9%
EBITDA Margin	2.9%	3.3%	3.6%	6.4%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹3 Cr	+161.0%
EPS	₹0.36	₹0.72	₹1.02	₹6.29	+159.5%
ROE	2.3%	4.5%	5.9%	26.9%	—
ROCE	6.4%	11.4%	11.4%	33.9%	—
Total Debt	₹3 Cr	₹3 Cr	₹9 Cr	₹10 Cr	+45.3%
Free Cash Flow	-₹0 Cr	₹1 Cr	₹2 Cr	-₹9 Cr	—

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

🟢 EBITDA has grown at 95.9% a year over 3 years.

🟢 EBITDA Margin has risen from 2.9% to 6.4% over 3 years (+3.5 pts).

🟢 PAT (Net Profit) has grown at 161.0% a year over 3 years.

🟢 EPS has grown at 159.5% a year over 3 years.

🟢 ROE has risen from 2.3% to 26.9% over 3 years (+24.6 pts).

🟢 ROCE has risen from 6.4% to 33.9% over 3 years (+27.5 pts).

🔴 Total Debt has grown at 45.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹28 Cr

Total Liabilities

₹17 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹3 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.9%

Corporate Actions

Ex-Dividend Date

23 Sept 2024

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

2 positive4 general

Grameva Limited Open Offer: Acquirers Target 26% Stake at Rs. 30 Per Share

scanx.trade, 30 Mar

Grameva Limited's Independent Directors Recommend Open Offer at Rs 30 Per Share

scanx.trade, 23 Mar

Diversified Trading Companies Penny Stocks 2027: 5 Picks

Univest, 18 Sept

Bangalore Fort Farms Limited Officially Rebrands as Grameva Limited

scanx.trade, 05 Nov

AVT Natural Products consolidated net profit rises 156.60% 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.

IRB Infrastructure Developers consolidated net profit rises 37.98% in the March 2026 quarter

Business Standard, 20 MayResults

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

Watch Items

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

DalalBaazaar Thesis

StrongGrowth · Profitability · Valuation

MiddlingBusiness Quality · Financial Health

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 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 ↑