Mishtann Foods Limited

Consumer Defensive — Farm Products · BSE

₹3.06₹0.00 (0.00%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:52 pm

Understanding the Business

Company site ↗

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

What does this company do?

Mishtann Foods Limited engages in the manufacturing, processing, and trading of basmati and raw rice, rice, wheat, dal, salt, and other food grains in India. The company was formerly known as HICS Cements Ltd. and changed its name to Mishtann Foods Limited in February 2015.

IndustryFarm Products

SectorConsumer Defensive

Annual revenue₹1,153 Cr

How does it make money?

Turns over ₹1,153 Cr a year. Of every ₹100 of sales, about ₹23 reaches shareholders as profit, with ₹23 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 19.8% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +77% while net margin moved +198% 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+77%

Margin effect+198%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Beta of 1.43 — amplifies market moves in both directions
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ 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

68/ 100

Good

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

Valuation

81/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

1.9x

3Y Median

1.8x

40 monthly readings · mean 11.1x · range 1.0x–41.6x

Sector Median

43.3x

median of 4 sector peers

🟡Currently trading close to its 3y median of 1.8x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 96% below the peer median of 43.3x.

vs. its own history

Fair

1.8x median over 40 months · +2%

vs. sector peers

Cheap

43.3x median of 4 peers · -96%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

1.5x

PEG

0.03

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 12.7% to 23.2% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 33.2% to 20.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 47.9% to 19.8% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 3 high

🔴High leverageFinancial
Debt/Equity of 4.78x — earnings must service borrowings before shareholders see anything.
🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 931% against revenue up 77% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.8% 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 12.7% to 23.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 96% 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?

Leverage amplifies any setback
Debt/Equity of 4.78x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 931% against revenue up 77%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 33.2% to 20.2%. 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.
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

1Revenue growth stays above 16% a year✓ 21.0% CAGR
Latest reported year was -95.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 21%✓ 23.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹66 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 19.8%
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

5 good · 2 neutral · 4 weak

Market Cap

₹330 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

1.9x

Cheap

Cheap against the generic band

P/B Ratio

0.25x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.63

Profitable

Profitable on a per-share basis

ROE

20.2%

Strong

Strong capital efficiency

ROCE

19.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

4.78x

High

High leverage

Revenue Growth (YoY)

-95.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

-21.0%

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

-₹66 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

5.9%

Average

Average margins

Net Margin

23.1%

Good

Strong bottom-line conversion

Current Ratio

2.44

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.43

High swing

Swings more than the market in both directions

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

3.1 / 3.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹650 Cr	₹1,288 Cr	₹1,375 Cr	₹1,153 Cr	+21.0%
EBITDA	₹82 Cr	₹359 Cr	₹339 Cr	₹267 Cr	+48.0%
EBITDA Margin	12.7%	27.9%	24.7%	23.2%	—
PAT (Net Profit)	₹50 Cr	₹346 Cr	₹333 Cr	₹263 Cr	+74.1%
EPS	₹0.5	₹3.35	₹3.09	₹2.44	+69.6%
ROE	33.2%	62.8%	34.7%	20.2%	—
ROCE	47.9%	62.9%	34.4%	19.8%	—
Total Debt	₹60 Cr	₹47 Cr	₹47 Cr	₹62 Cr	+1.1%
Free Cash Flow	-₹3 Cr	-₹41 Cr	-₹49 Cr	-₹66 Cr	—

🟢 Revenue has grown at 21.0% a year over 3 years.

🟢 EBITDA has grown at 48.0% a year over 3 years.

🟢 EBITDA Margin has risen from 12.7% to 23.2% over 3 years (+10.5 pts).

🟢 PAT (Net Profit) has grown at 74.1% a year over 3 years.

🟢 EPS has grown at 69.6% a year over 3 years.

🔴 ROE has fallen from 33.2% to 20.2% over 3 years (-13.0 pts).

🔴 ROCE has fallen from 47.9% to 19.8% over 3 years (-28.1 pts).

🟡 Total Debt has been broadly flat over 3 years (1.1% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,284 Cr

Total Liabilities

₹983 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹66 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

43.5%

Corporate Actions

Ex-Dividend Date

21 Jun 2024

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

Mishtann Foods Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Mishtann Foods publishes FY26 results amid audit qualifications

scanx.trade, 01 JunResults

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

Mishtann Foods Consolidated March 2026 Net Sales at Rs 30.84 crore, down 90.69% Y-o-Y

Moneycontrol.com, 09 Jun

Compare with DEVIKA FINST

Equitymaster, 13 Oct

Mishtann Foods consolidated net profit declines 99.41% in the June 2026 quarter

Business Standard, 10 AugResults

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

Mishtann Foods Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 25 Sept

Watch Items

Revenue growth is negative (-95.3%) on the latest reported period — check if this is one-off or a trend.
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.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability · Valuation

MiddlingFinancial Health

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 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 ↑