Galaxy Supermarket Limited

Consumer Defensive — Grocery Stores · BSE

₹20.67+₹1.82 (+9.66%)

DalalBaazaar Score

27 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, with both sales and profits growing well. Solvency — whether it can keep funding itself at all — 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 Galaxy Supermarket Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Galaxy Supermarket Limited operates retail supermarkets in North India. It operates supermarket stores under the Galaxy Supermarket brand name. The company was formerly known as Galaxy Cloud Kitchens Limited and changed its name to Galaxy Supermarket Limited in January 2026.

IndustryGrocery Stores

SectorConsumer Defensive

Employees82

Annual revenue₹39 Cr

How does it make money?

Turns over ₹39 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 82 employees supports ₹47.8 lakh of revenue a year, the signature of a people-led business.

EBITDA margin8.6%

Net margin3.9%

Revenue / employee₹47.8 lakh

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 has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +263% 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+263%

Margin effect-105%

DalalBaazaar Score

27/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

29/ 100

Weak

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

Valuation

30/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

2067.0x

Sector Median

43.3x

median of 4 sector peers

⚠️Against its sector it trades 4678% above the peer median of 43.3x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

43.3x median of 4 peers · +4678%

vs. generic bands

N/A

Multiples unreliable — equity base is negative

P/E (Trailing)

2067.0x

P/B

—

EV/EBITDA

36.6x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 33.4% to 8.6% over 3 years.
Debt is rising
Total debt is up 114% over 3 years — worth checking what it funded.
Inventory building faster than sales
Inventory is up 386% against revenue growth of 263% — stock may not be moving.
Negative shareholders' equity
Liabilities exceed assets — this is a solvency question that sits above every other consideration here.
Short-term liquidity is tight
Current ratio of 0.30 — near-term obligations exceed near-term assets.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Debt has risen sharplyFinancial
Total debt is up 114% over 3 years, from ₹10 Cr to ₹21 Cr.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 24.8 points, from 33.4% to 8.6%.
🔴Inventory building faster than salesFinancial
Inventory up 386% against revenue up 263% — stock may not be moving.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.30 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
Margins are being competed away
EBITDA margin has fallen from 33.4% to 8.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 6.3x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 4678% above the peer median. That premium needs a reason that persists, or it closes.
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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 40% a year✓ 53.7% CAGR
Latest reported year was 15.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 8.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 6.3x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 2.9x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

4 / 9 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ 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 · 4 neutral · 3 weak

Market Cap

₹103 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

2067.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹0.01

Profitable

Profitable on a per-share basis

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

Not available

No data

Source didn't return this field

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

15.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

146.2%

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

CMP

₹20.67

Operating Margin

-0.8%

Weak

Thin margins leave little room for error

Net Margin

1.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.30

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.45

Defensive

Steadier than the market

52W Range Position

86%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

18.8 / 18.8

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

56.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹11 Cr	₹0 Cr	₹10 Cr	₹39 Cr	+53.7%
EBITDA	₹4 Cr	-₹1 Cr	₹3 Cr	₹3 Cr	-2.3%
EBITDA Margin	33.4%	-82169300.0%	30.0%	8.6%	—
PAT (Net Profit)	-₹9 Cr	-₹14 Cr	-₹3 Cr	₹2 Cr	—
EPS	₹-2	₹-3.17	₹-0.7	₹0.31	—
Total Debt	₹10 Cr	₹17 Cr	₹21 Cr	₹21 Cr	+28.9%
Free Cash Flow	-₹8 Cr	-₹11 Cr	-₹2 Cr	₹1 Cr	—

🟢 Revenue has grown at 53.7% a year over 3 years.

🔴 EBITDA has shrunk at 2.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 33.4% to 8.6% over 3 years (-24.8 pts).

🟢 PAT (Net Profit) has turned positive, from -₹9 Cr to ₹2 Cr.

🟢 EPS has turned positive, from ₹-2 to ₹0.31.

🔴 Total Debt has grown at 28.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹8 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹20 Cr

Total Liabilities

₹38 Cr

Total Debt

₹21 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

82.7%

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 mixed1 negative4 general

Galaxy Supermarket Ltd is Rated Sell

MarketsMojo, 16 Oct

Galaxy Supermarket reports net profit of Rs 151.88 lakh for FY26

scanx.trade, 22 May

Galaxy Surfactants (GALAXYSURF) Share Price rises near 52-week high on 14 October 2026

Univest, 14 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

TRAVELFOOD Stock Price and Chart — NSE:TRAVELFOOD

TradingView, 27 Aug

Galaxy Supermarket AGM passes all 3 resolutions with strong majority

scanx.trade, 03 Oct

Maharashtra Seamless consolidated net profit declines 57.52% in the March 2026 quarter

Business Standard, 23 MayResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🔴Business QualityWeak6/20

🔴Financial HealthStretched1/20

🟢GrowthStrong13/20

🔴ProfitabilityWeak1.5/15

🔴ValuationDemanding4.5/15

🔴RiskHigh0.5/10

Avoid until solvency is resolved

Galaxy Supermarket Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 40% a year53.7% CAGR
✓EBITDA margin holds above 7%8.6%
✗Debt / EBITDA falls below 3x6.3x
✗Interest cover stays above 3x2.9x
✓Free cash flow remains positive₹1 Cr