Healthy Life Agritec Limited

Consumer Defensive — Farm Products · BSE

₹5.45−₹0.28 (−4.89%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

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, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Healthy Life Agritec Limited, together its subsidiaries, engages in the trading of milk, live poultry, and fresh meat products in India.

IndustryFarm Products

SectorConsumer Defensive

Annual revenue₹228 Cr

How does it make money?

Turns over ₹228 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹3 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?Little sign of one

Returns on capital of 9.5% 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.

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 +112% while net margin moved +25% 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+112%

Margin effect+25%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ ROE of 6.3% is weak

Quality vs. Valuation

Company Quality

58/ 100

Average

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

Valuation

88/ 100

Cheap

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

4.5x

3Y Median

15.8x

40 monthly readings · mean 39.1x · range 6.7x–115.3x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 71% below its 3y median of 15.8x. 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 90% below the peer median of 43.3x.

vs. its own history

Cheap

15.8x median over 40 months · -71%

vs. sector peers

Cheap

43.3x median of 4 peers · -90%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.0x

PEG

0.12

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.20x leaves the balance sheet with plenty of headroom.
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

6 items require attention · 5 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 910% over 3 years, from ₹1 Cr to ₹13 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.
🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 1229% against revenue up 112% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 326% against revenue up 112% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 42% 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 71% 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 90% 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?

Sales are being booked faster than collected
Receivables are up 1229% against revenue up 112%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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
5 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 21% a year✓ 28.4% CAGR
Latest reported year was 62.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 1%✓ 2.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹28 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 2.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 9.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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 · 3 neutral · 3 weak

Market Cap

₹27 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

4.5x

Cheap

Cheap against the generic band

P/B Ratio

0.43x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.2

Profitable

Profitable on a per-share basis

ROE

6.3%

Weak

Weak capital efficiency

ROCE

9.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.20x

Low

Conservative leverage

Revenue Growth (YoY)

62.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-15.2%

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

-₹28 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

3.1%

Weak

Thin margins leave little room for error

Net Margin

1.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.71

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.30

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

6.4 / 6.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

24.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹108 Cr	₹133 Cr	₹172 Cr	₹228 Cr	+28.4%
EBITDA	₹3 Cr	₹4 Cr	₹5 Cr	₹7 Cr	+29.5%
EBITDA Margin	2.8%	2.7%	2.8%	2.9%	—
PAT (Net Profit)	₹2 Cr	₹3 Cr	₹3 Cr	₹4 Cr	+38.3%
EPS	₹0.51	₹0.72	₹0.82	₹0.81	+16.7%
ROE	6.2%	9.3%	9.5%	6.3%	—
ROCE	8.8%	12.1%	12.8%	9.5%	—
Total Debt	₹1 Cr	₹3 Cr	₹8 Cr	₹13 Cr	+116.2%
Free Cash Flow	-₹13 Cr	-₹1 Cr	-₹9 Cr	-₹28 Cr	—

🟢 Revenue has grown at 28.4% a year over 3 years.

🟢 EBITDA has grown at 29.5% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 2.9% over 3 years.

🟢 PAT (Net Profit) has grown at 38.3% a year over 3 years.

🟢 EPS has grown at 16.7% a year over 3 years.

🟡 ROE has held roughly flat at 6.3% over 3 years.

🟡 ROCE has held roughly flat at 9.5% over 3 years.

🔴 Total Debt has grown at 116.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹148 Cr

Total Liabilities

₹85 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹27 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

50.1%

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

6 general

Healthy Life Agritec postpones Sept 29 board meet for rights issue terms

scanx.trade, 29 Sept

Healthy Life Agritec Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

Healthy Life Agritec Ltd is Rated Sell by MarketsMOJO

MarketsMojo, 07 Oct

Healthy Life Agritec Secures Consent to Operate License for Bangalore Manufacturing Unit

scanx.trade, 19 May

Healthy Life Agritec Ltd

Equitypandit, 28 Feb

Healthy Life Agritec's Rs. 24.81 crore Rights Issue opens

Business Standard, 18 Oct

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

WeakBusiness Quality · Profitability · 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. 5 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 ↑