Gujjubhai Industries Limited

Consumer Defensive — Food Distribution · BSE

₹134.00+₹1.65 (+1.25%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, 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, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Gujjubhai Industries Limited trades, retails, produces, and franchises dry fruits under the GujjuBhai Foods in India. The company offers mamkeen and savoury snacks, khakhra and bhakhri range, ready-to-eat/ready-to-consume, and the health and wellness products.

IndustryFood Distribution

SectorConsumer Defensive

Annual revenue₹127 Cr

How does it make money?

Turns over ₹127 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.

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 16.9% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +356% while net margin moved -51% 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+356%

Margin effect-51%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

• ROE of 12.8% is moderate
✗ ROE has fallen by 12.5 points over the period

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

42/ 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

54.0x

3Y Median

68.3x

40 monthly readings · mean 70.9x · range 44.6x–111.1x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 21% below its 3y median of 68.3x. 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 25% above the peer median of 43.3x.

vs. its own history

Cheap

68.3x median over 40 months · -21%

vs. sector peers

Expensive

43.3x median of 4 peers · +25%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

37.1x

PEG

1.76

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.16x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 25.3% to 12.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 32.3% to 16.9% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 1015% over 3 years, from ₹1 Cr to ₹6 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.4 points, from 11.4% to 6.1%.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 194% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 21% 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.
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 11.4% to 6.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 25% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 25.3% to 12.8%. 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.
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
3 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 49% a year✓ 65.8% CAGR
Latest reported year was 101.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 6.1%
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.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 14%✓ 16.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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 · 3 neutral · 4 weak

Market Cap

₹280 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

54.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

6.93x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹2.48

Profitable

Profitable on a per-share basis

ROE

12.8%

Moderate

Moderate capital efficiency

ROCE

16.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.16x

Low

Conservative leverage

Revenue Growth (YoY)

101.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-13.8%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

6.4%

Average

Average margins

Net Margin

4.0%

Average

Average bottom-line conversion

Current Ratio

3.56

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.37

Defensive

Steadier than the market

52W Range Position

21%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

120.7 / 119.3

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

75.3

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹28 Cr	₹61 Cr	₹98 Cr	₹127 Cr	+65.8%
EBITDA	₹3 Cr	₹9 Cr	₹7 Cr	₹8 Cr	+34.2%
EBITDA Margin	11.4%	15.0%	7.6%	6.1%	—
PAT (Net Profit)	₹2 Cr	₹5 Cr	₹5 Cr	₹5 Cr	+30.7%
EPS	₹3.26	₹2.63	₹2.24	—	—
ROE	25.3%	17.9%	13.2%	12.8%	—
ROCE	32.3%	22.3%	17.7%	16.9%	—
Total Debt	₹1 Cr	₹2 Cr	₹6 Cr	₹6 Cr	+123.4%
Free Cash Flow	-₹4 Cr	-₹2 Cr	-₹6 Cr	-₹1 Cr	—

🟢 Revenue has grown at 65.8% a year over 3 years.

🟢 EBITDA has grown at 34.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 11.4% to 6.1% over 3 years (-5.4 pts).

🟢 PAT (Net Profit) has grown at 30.7% a year over 3 years.

🔴 ROE has fallen from 25.3% to 12.8% over 3 years (-12.5 pts).

🔴 ROCE has fallen from 32.3% to 16.9% over 3 years (-15.4 pts).

🔴 Total Debt has grown at 123.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹57 Cr

Total Liabilities

₹16 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.5%

Insider Holding

76.6%

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 mixed4 general

Gujjubhai Industries hosts Garba event in Bengaluru to showcase products

scanx.trade, 13 Oct

Sumuka Agro Industries Share Price update after 8.75% rise

Univest, 06 Oct

Gujjubhai Industries (BSE:532070) - Stock Analysis

Simply Wall Street, 14 Apr

Gujjubhai Industries Ltd is Rated Sell

MarketsMojo, 06 Oct

Sumuka Agro Industries Share Price falls on price action

Univest, 27 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Gujjubhai Industries approves cafe acquisition and director changes

scanx.trade, 03 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongFinancial Health · Growth

WeakBusiness Quality · Profitability · Valuation · 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. 3 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 ↑