Mother Nutri Foods Limited

Consumer Defensive — Packaged Foods · BSE

₹155.00₹0.00 (0.00%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:56 pm

Understanding the Business

Company site ↗

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

What does this company do?

Mother Nutri Foods Limited engages in the manufacture and export of peanut butter, spreads, and semi-processed peanuts. It offers roasted and splited peanuts, and peanut paste.

IndustryPackaged Foods

SectorConsumer Defensive

Employees32

Annual revenue₹123 Cr

How does it make money?

Turns over ₹123 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 32 employees supports ₹3.85 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.85 Cr

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.

Compared side by side in Peers ↓

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

ROCE has stayed above 15% in every year available and stands at 25.1%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 25.6% 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.

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 +63% while net margin moved +534% 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+63%

Margin effect+534%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ 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

73/ 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

14.0x

1.0Y Median

30.5x

12 monthly readings · mean 30.5x · range 27.4x–32.5x

Sector Median

51.7x

median of 4 sector peers

🟢Current valuation is approximately 54% below its 1.0y median of 30.5x. 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 trades 73% below the peer median of 51.7x.

vs. its own history

Cheap

30.5x median over 12 months · -54%

vs. sector peers

Cheap

51.7x median of 4 peers · -73%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

13.8x

PEG

0.12

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 4.1% to 13.9% over 3 years.
High return on capital employed
ROCE of 25.1% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 33.9% to 25.1% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 4 high

🔴Debt has risen sharplyFinancial
Total debt is up 78% over 3 years, from ₹23 Cr to ₹42 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 238% against revenue up 63% — 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 25.1% 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 4.1% to 13.9%. 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 54% 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 73% 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 238% against revenue up 63%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.
Several serious flags at once
4 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 13% a year✓ 17.6% CAGR
Latest reported year was 36.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 13.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹46 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 22%✓ 25.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

6 good · 4 neutral · 1 weak

Market Cap

₹194 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.0x

Cheap

Cheap against the generic band

P/B Ratio

2.94x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹11.09

Profitable

Profitable on a per-share basis

ROE

25.6%

Strong

Strong capital efficiency

ROCE

25.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.63x

Moderate

Moderate leverage

Revenue Growth (YoY)

36.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

75.4%

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

-₹28 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

10.3%

Good

Assets are working hard

Operating Margin

11.6%

Average

Average margins

Net Margin

9.4%

Average

Average bottom-line conversion

Current Ratio

1.72

Comfortable

Healthy short-term liquidity

52W Range Position

54%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

157.2 / 159.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

25.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹76 Cr	₹81 Cr	₹90 Cr	₹123 Cr	+17.6%
EBITDA	₹3 Cr	₹9 Cr	₹10 Cr	₹17 Cr	+76.6%
EBITDA Margin	4.1%	10.6%	11.5%	13.9%	—
PAT (Net Profit)	₹1 Cr	₹5 Cr	₹7 Cr	₹12 Cr	+117.7%
EPS	₹0.9	₹3.81	₹5.29	—	—
ROE	20.2%	46.1%	26.7%	17.6%	—
ROCE	33.9%	70.9%	39.1%	25.1%	—
Total Debt	₹23 Cr	₹25 Cr	₹23 Cr	₹42 Cr	+21.1%
Free Cash Flow	-₹22 Cr	-₹0 Cr	-₹3 Cr	-₹46 Cr	—

🟢 Revenue has grown at 17.6% a year over 3 years.

🟢 EBITDA has grown at 76.6% a year over 3 years.

🟢 EBITDA Margin has risen from 4.1% to 13.9% over 3 years (+9.8 pts).

🟢 PAT (Net Profit) has grown at 117.7% a year over 3 years.

🔴 ROE has fallen from 20.2% to 17.6% over 3 years (-2.6 pts).

🔴 ROCE has fallen from 33.9% to 25.1% over 3 years (-8.7 pts).

🔴 Total Debt has grown at 21.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹119 Cr

Total Liabilities

₹53 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹45 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

88.7%

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

6 general

Mother Nutri Foods Limited Share Price - Live MNFL Stock Price & Chart

Upstox, 05 May

Mother Nutri Foods Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Mother Nutri Foods AGM: All resolutions pass with 100% support

scanx.trade, 24 Sept

Mother Nutri Foods shares to list today. Here's what GMP signals ahead of debut

The Economic Times, 03 Dec

MNFL Stock Price and Chart — BSE:MNFL

TradingView, 03 Dec

Mother Nutri Foods IPO GMP, Date, Price Band & Review

IndiaIPO, 21 Nov

Watch Items

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

StrongGrowth · Profitability · Valuation

MiddlingBusiness Quality · Financial 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. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑