Manorama Industries Limited

Consumer Defensive — Packaged Foods · NSE

₹1,906.10−₹21.30 (−1.11%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Manorama Industries Limited manufactures, processes, and supplies specialty fats and butters from tree-borne, and plant-based seeds worldwide.

IndustryPackaged Foods

SectorConsumer Defensive

Annual revenue₹1,362 Cr

How does it make money?

Turns over ₹1,362 Cr a year. Of every ₹100 of sales, about ₹17 reaches shareholders as profit, with ₹27 left at the operating level before interest, tax and depreciation.

EBITDA margin27.1%

Net margin16.5%

Who are its competitors?

The closest listed comparisons in its industry are NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD, TATA CONSUMER PRODUCT LTD, DABUR INDIA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

NESTLE INDIA LIMITEDP/E 59.8x · ROE 79.9%

BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%

TATA CONSUMER PRODUCT LTDP/E 59.3x · ROE 7.5%

DABUR INDIA LTDP/E 34.7x · ROE 17.2%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 47.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 33.0% against a peer median of 51.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE47.4%

ROE33.0%

Peer median ROE51.0%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 20.6% and earnings to grow about 14.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+20.6%

Est. earnings growth+14.7%

Analysts3

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 +291% while net margin moved +93% 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+291%

Margin effect+93%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 46.2x is demanding — it needs sustained high growth to justify
✓ P/E is 45% below its own historical median of 83.5x — cheap by its own standards
✗ P/B of 16.68x is a steep premium to book

Quality vs. Valuation

Company Quality

80/ 100

Excellent

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

Valuation

57/ 100

Fair

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

46.2x

3Y Median

83.5x

40 monthly readings · mean 107.8x · range 49.2x–226.4x

Sector Median

51.7x

median of 4 sector peers

🟢Current valuation is approximately 45% below its 3y median of 83.5x. 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 is priced broadly in line with the peer median of 51.7x.

vs. its own history

Cheap

83.5x median over 40 months · -45%

vs. sector peers

Fair

51.7x median of 4 peers · -11%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

46.2x

P/B

16.68x

EV/EBITDA

33.5x

PEG

0.48

Dividend Yield

0.04%

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 17.7% to 27.1% over 3 years.
Cash generation is improving
Free cash flow is up 2354% over 3 years.
Return on equity is rising
ROE has improved from 10.0% to 33.0%.
Return on capital is rising
ROCE has improved from 15.5% to 47.4%.
High return on capital employed
ROCE of 47.4% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 46.2x the stock trades 45% below its own median of 83.5x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Debt is rising
Total debt is up 222% over 3 years — worth checking what it funded.
Inventory building faster than sales
Inventory is up 362% against revenue growth of 291% — stock may not be moving.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 222% over 3 years, from ₹110 Cr to ₹355 Cr.
🔴Inventory building faster than salesFinancial
Inventory up 362% against revenue up 291% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 47.4% 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 17.7% to 27.1%. 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 45% 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?

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
Small 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 43% a year✓ 57.6% CAGR
Latest reported year was 39.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 25%✓ 27.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹196 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 44%✓ 47.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

11 / 12 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 2 neutral · 2 weak

Market Cap

₹12,032 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

46.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

16.68x

Rich

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

EPS (TTM)

₹41.3

Profitable

Profitable on a per-share basis

ROE

33.0%

Strong

Strong capital efficiency

ROCE

47.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.52x

Low

Conservative leverage

Revenue Growth (YoY)

39.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

67.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.04%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹196 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹1,906.1

P/E (Forward)

34.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

24.8%

Good

Healthy core-business profitability

Net Margin

17.3%

Good

Strong bottom-line conversion

Current Ratio

1.97

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.28

Defensive

Steadier than the market

52W Range Position

78%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1936.7 / 1902.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

55.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹348 Cr	₹456 Cr	₹767 Cr	₹1,362 Cr	+57.6%
EBITDA	₹62 Cr	₹85 Cr	₹205 Cr	₹370 Cr	+81.6%
EBITDA Margin	17.7%	18.7%	26.8%	27.1%	—
PAT (Net Profit)	₹30 Cr	₹40 Cr	₹110 Cr	₹225 Cr	+96.2%
EPS	₹4.99	₹6.72	₹18.35	₹37.66	+96.2%
ROE	10.0%	11.9%	23.9%	33.0%	—
ROCE	15.5%	18.2%	35.9%	47.4%	—
Total Debt	₹110 Cr	₹346 Cr	₹482 Cr	₹355 Cr	+47.7%
Free Cash Flow	₹8 Cr	-₹193 Cr	-₹89 Cr	₹196 Cr	+190.6%

🟢 Revenue has grown at 57.6% a year over 3 years.

🟢 EBITDA has grown at 81.6% a year over 3 years.

🟢 EBITDA Margin has risen from 17.7% to 27.1% over 3 years (+9.4 pts).

🟢 PAT (Net Profit) has grown at 96.2% a year over 3 years.

🟢 EPS has grown at 96.2% a year over 3 years.

🟢 ROE has risen from 10.0% to 33.0% over 3 years (+23.0 pts).

🟢 ROCE has risen from 15.5% to 47.4% over 3 years (+31.9 pts).

🔴 Total Debt has grown at 47.7% a year over 3 years.

🟢 Free Cash Flow has grown at 190.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,200 Cr

Total Liabilities

₹517 Cr

Total Debt

₹355 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

₹250 Cr

Capex

-₹55 Cr

Shareholding (proxy)

Institutional Holding

3.8%

Insider Holding

67.4%

Corporate Actions

Dividend Rate

₹0.8

Ex-Dividend Date

11 Sept 2026

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹2,110.5

+10.7% vs CMP

Target Range

₹2,080 – ₹2,141

Peer Comparison

Company	P/E	ROE
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%
TATA CONSUMER PRODUCT LTD	59.3x	7.5%
DABUR INDIA LTD	34.7x	17.2%

Recent News

3 mixed3 general

Manorama Industries' (NSE:MANORAMA) Promising Earnings May Rest On Soft Foundations

Simply Wall Street, 06 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

MANORAMA Forecast — Price Target — Prediction for 2027

TradingView, 26 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Manorama Industries Limited (MANORAMA.NS) Stock Price, News, Quote & History

Yahoo! Finance Canada, 09 Oct

Manorama Industries shares surge over 8% after strong Q1 results

The Economic Times, 14 AugPrice 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.

Manorama Industries vs Nifty 50: Share Price Performance Compared

Univest, 06 Oct

Manorama Industries: Can growth sustain the valuation?

The Indian Express, 21 May

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong17.9/20

🟢Financial HealthStrong14.6/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong12.9/15

🔴ValuationDemanding6.7/15

🟡RiskModerate4.9/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 43% a year57.6% CAGR
✓EBITDA margin holds above 25%27.1%
✓Free cash flow remains positive₹196 Cr
✓Debt / EBITDA stays below 2x1.0x
✓ROCE stays above 44%47.4%