Groarc Industries India Limited

Consumer Defensive — Food Distribution · BSE

₹6.69−₹0.21 (−3.04%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

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, though profits are falling even as sales grow. Cash generation is currently 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 Groarc Industries India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Groarc Industries India Limited engages in the trading of food products in India. The company was formerly known as Telesys Software Limited and changed its name to Groarc Industries India Limited in October 2024.

IndustryFood Distribution

SectorConsumer Defensive

Annual revenue₹26 Cr

How does it make money?

Turns over ₹26 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹0 left at the operating level before interest, tax and depreciation.

EBITDA margin0.3%

Net margin1.3%

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.

HINDUSTAN UNILEVER LTD.P/E 42.5x · ROE 21.5%

ITC LTDP/E 16.6x · ROE 27.4%

NESTLE INDIA LIMITEDP/E 59.8x · ROE 79.9%

BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%

What is its competitive advantage?Little sign of one

Returns on capital of 1.1% 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.

ROCE1.1%

ROE5.5%

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 -63% while net margin moved +331% 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-63%

Margin effect+331%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Beta of 1.85 — 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

44/ 100

Weak

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

Valuation

77/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

6.3x

3Y Median

56.3x

40 monthly readings · mean 58.4x · range 12.1x–114.5x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 89% below its 3y median of 56.3x. 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 85% below the peer median of 43.3x.

vs. its own history

Cheap

56.3x median over 40 months · -89%

vs. sector peers

Cheap

43.3x median of 4 peers · -85%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

6.3x

P/B

0.31x

EV/EBITDA

208.0x

PEG

0.37

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Valuation below its historical average
At 6.3x the stock trades 89% below its own median of 56.3x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 4.0% to 0.3% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on capital is falling
ROCE has declined from 3.7% to 1.1% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹19 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 3.8 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 89% 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 85% 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?

Margins are being competed away
EBITDA margin has fallen from 4.0% to 0.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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

1EBITDA margin holds above -2%✓ 0.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹19 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ 1.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 56.3x✓ 6.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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

4 good · 3 neutral · 4 weak

Market Cap

₹14 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.3x

Cheap

Cheap against the generic band

P/B Ratio

0.31x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.06

Profitable

Profitable on a per-share basis

ROE

5.5%

Weak

Weak capital efficiency

ROCE

1.1%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

2580.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-60.4%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹19 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹6.69

ROA

2.3%

Weak

Assets generate little profit

Operating Margin

-0.7%

Weak

Thin margins leave little room for error

Net Margin

4.7%

Average

Average bottom-line conversion

Current Ratio

35.34

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.85

High swing

Swings more than the market in both directions

52W Range Position

19%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

6.2 / 6.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

57.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹69 Cr	₹41 Cr	₹35 Cr	₹26 Cr	-28.0%
EBITDA	₹3 Cr	₹1 Cr	₹1 Cr	₹0 Cr	-71.4%
EBITDA Margin	4.0%	2.6%	3.6%	0.3%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹1 Cr	₹0 Cr	+17.1%
EPS	₹0.1	₹0.13	₹0.43	₹0.17	+19.3%
ROE	0.6%	0.7%	2.2%	0.9%	—
ROCE	3.7%	1.2%	2.8%	1.1%	—
Total Debt	₹0 Cr	₹0 Cr	—	—	—
Free Cash Flow	-₹11 Cr	₹16 Cr	₹5 Cr	-₹19 Cr	—

🔴 Revenue has shrunk at 28.0% a year over 3 years.

🔴 EBITDA has shrunk at 71.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 4.0% to 0.3% over 3 years (-3.8 pts).

🟢 PAT (Net Profit) has grown at 17.1% a year over 3 years.

🟢 EPS has grown at 19.3% a year over 3 years.

🟡 ROE has held roughly flat at 0.9% over 3 years.

🔴 ROCE has fallen from 3.7% to 1.1% over 3 years (-2.6 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹42 Cr

Total Liabilities

₹2 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹19 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

58.5%

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 positive1 mixed4 general

Siemens Energy India standalone net profit rises 67.83% in the June 2026 quarter

Business Standard, 07 AugResults

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

Groarc Industries India Limited (532315) Company Information

Simply Wall Street, 17 Aug

Chandran Ganesan acquires 4.24% stake in Groarc Industries via off-market deal

scanx.trade, 02 Sept

Groarc Ind Standalone June 2026 Net Sales at Rs 21.05 crore, up 2579.98% Y-o-Y

Moneycontrol.com, 17 Sept

Telesys Info-Infra (I) Ltd Share Price

Business Today, 31 Jan

Q4 Results 2025: Over 700 Companies To Declare Earnings This Week, Full List Here

NDTV Profit, 19 MayResults

🟡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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟡Financial HealthAdequate10.8/20

🟡GrowthModest10.5/20

🔴ProfitabilityWeak4.5/15

🟢ValuationAttractive13.2/15

🔴RiskHigh2.7/10

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low.

This thesis breaks if

✓EBITDA margin holds above -2%0.3%
✗Free cash flow remains positive-₹19 Cr
✗ROCE stays above 8%1.1%
✓Valuation vs its own median of 56.3x6.3x today