Newtrac Foods & Beverages Limited

Consumer Defensive — Food Distribution · BSE

₹5.13+₹0.17 (+3.43%)

DalalBaazaar Score

33 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The company is currently losing money, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

NEWTRAC FOODS & BEVERAGES LIMITED does not have significant operations.

IndustryFood Distribution

SectorConsumer Defensive

Annual revenue₹16 Cr

How does it make money?

Turns over ₹16 Cr a year. Of every ₹100 of sales, about ₹-39 reaches shareholders as profit, with ₹5 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 -128.3% 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%

DalalBaazaar Score

33/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ No meaningful P/E — the company is lossmaking

Quality vs. Valuation

Company Quality

39/ 100

Weak

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

Valuation

36/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

13.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 58% over 3 years, from ₹1 Cr to ₹2 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only -31.3x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹6 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 40.7x to -31.3x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹2 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 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
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

1EBITDA margin holds above 3%✓ 5.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -31.3x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ -128.3%
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

2 good · 3 neutral · 6 weak

Market Cap

₹10 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹-2.95

Loss-making

Negative earnings per share — the business is losing money

ROE

-132.4%

Weak

Weak capital efficiency

ROCE

-128.3%

Weak

Low return on total capital employed

Debt/Equity

0.35x

Low

Conservative leverage

Revenue Growth (YoY)

-74.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

-454.4%

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

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.03

Adequate

Adequate, but no real cushion

52W Range Position

44%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

4.6 / 4.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

84.8

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	₹24 Cr	₹64 Cr	₹16 Cr	—
EBITDA	-₹0 Cr	₹2 Cr	₹3 Cr	₹1 Cr	—
EBITDA Margin	—	9.2%	4.1%	5.4%	—
PAT (Net Profit)	-₹0 Cr	₹2 Cr	₹2 Cr	-₹6 Cr	—
EPS	₹-0.35	₹4.57	₹1.01	₹-3.32	—
ROE	—	—	16.1%	-132.4%	—
ROCE	—	—	23.1%	-128.3%	—
Total Debt	₹1 Cr	—	₹0 Cr	₹2 Cr	+16.6%
Free Cash Flow	-₹0 Cr	₹3 Cr	-₹16 Cr	₹2 Cr	—

🟢 EBITDA has turned positive, from -₹0 Cr to ₹1 Cr.

🔴 EBITDA Margin has fallen from 9.2% to 5.4% over 3 years (-3.8 pts).

🔴 ROE has fallen from 16.1% to -132.4% over 3 years (-148.4 pts).

🔴 ROCE has fallen from 23.1% to -128.3% over 3 years (-151.4 pts).

🔴 Total Debt has grown at 16.6% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹18 Cr

Total Liabilities

₹14 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹2 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

41.3%

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

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

Value Research, 31 Aug

Newtrac Foods Standalone June 2026 Net Sales at Rs 22.00 crore, up 64.52% Y-o-Y

Moneycontrol.com, 28 Jul

Newtrac Foods board meets Aug 25 to consider director appointment

scanx.trade, 17 Aug

Newtrac Foods & Beverages Ltd. Share Price Live Today

CNBC TV18, 06 Jan

Newtrac Foods & Beverages Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Newtrac Foods & Beverages passes all 5 resolutions at 39th AGM

scanx.trade, 24 Sept

Watch Items

Revenue growth is negative (-74.5%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

MiddlingFinancial Health · Growth

WeakBusiness Quality · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑