Oceanic Foods Limited

Consumer Defensive — Packaged Foods · BSE

₹46.50−₹1.49 (−3.10%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 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 Oceanic Foods Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Oceanic Foods Limited engages in the production, processing, and sale of dehydrated vegetables and herbs in India and internationally.

IndustryPackaged Foods

SectorConsumer Defensive

Employees70

Annual revenue₹162 Cr

How does it make money?

Turns over ₹162 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 70 employees supports ₹2.32 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin8.8%

Net margin4.2%

Revenue / employee₹2.32 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.

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?Some evidence

ROCE of 24.6% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE24.6%

ROE14.9%

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 +89% while net margin moved +19% 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+89%

Margin effect+19%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.06 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

61/ 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

7.0x

3Y Median

14.1x

40 monthly readings · mean 15.4x · range 7.7x–30.0x

Sector Median

51.7x

median of 4 sector peers

🟢Current valuation is approximately 50% below its 3y median of 14.1x. 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 86% below the peer median of 51.7x.

vs. its own history

Cheap

14.1x median over 40 months · -50%

vs. sector peers

Cheap

51.7x median of 4 peers · -86%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

7.0x

P/B

1.15x

EV/EBITDA

6.4x

PEG

0.23

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 6.6% to 8.8% over 3 years.
Return on equity is rising
ROE has improved from 9.6% to 14.9%.
Return on capital is rising
ROCE has improved from 13.8% to 24.6%.
High return on capital employed
ROCE of 24.6% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 7.0x the stock trades 50% below its own median of 14.1x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 2860% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 285% against revenue growth of 89% — customers are taking longer to pay.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 2860% over 3 years, from ₹1 Cr to ₹39 Cr.
🔴Free cash flow negative for 3 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 285% against revenue up 89% — 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 24.6% 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 6.6% to 8.8%. 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 50% 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 86% 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 285% against revenue up 89%. 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
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

1Revenue growth stays above 18% a year✓ 23.7% CAGR
Latest reported year was -0.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 8.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.8x
How much operating profit can fall before interest stops being comfortably covered.

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 · 4 neutral · 2 weak

Market Cap

₹52 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.0x

Cheap

Cheap against the generic band

P/B Ratio

1.15x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹6.63

Profitable

Profitable on a per-share basis

ROE

14.9%

Moderate

Moderate capital efficiency

ROCE

24.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.85x

Moderate

Moderate leverage

Revenue Growth (YoY)

-0.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

43.8%

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

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹46.5

Operating Margin

9.0%

Average

Average margins

Net Margin

4.5%

Average

Average bottom-line conversion

Current Ratio

1.35

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.06

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

48.8 / 51.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

32.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹86 Cr	₹107 Cr	₹142 Cr	₹162 Cr	+23.7%
EBITDA	₹6 Cr	₹6 Cr	₹10 Cr	₹14 Cr	+36.6%
EBITDA Margin	6.6%	5.6%	7.2%	8.8%	—
PAT (Net Profit)	₹3 Cr	₹3 Cr	₹5 Cr	₹7 Cr	+31.1%
EPS	₹2.68	₹2.25	₹4.4	₹6.04	+31.1%
ROE	9.6%	7.5%	12.8%	14.9%	—
ROCE	13.8%	11.8%	20.3%	24.6%	—
Total Debt	₹1 Cr	₹17 Cr	₹33 Cr	₹39 Cr	+209.3%
Free Cash Flow	₹15 Cr	-₹11 Cr	-₹20 Cr	-₹3 Cr	—

🟢 Revenue has grown at 23.7% a year over 3 years.

🟢 EBITDA has grown at 36.6% a year over 3 years.

🟢 EBITDA Margin has risen from 6.6% to 8.8% over 3 years (+2.3 pts).

🟢 PAT (Net Profit) has grown at 31.1% a year over 3 years.

🟢 EPS has grown at 31.1% a year over 3 years.

🟢 ROE has risen from 9.6% to 14.9% over 3 years (+5.3 pts).

🟢 ROCE has risen from 13.8% to 24.6% over 3 years (+10.8 pts).

🔴 Total Debt has grown at 209.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹15 Cr to -₹3 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹101 Cr

Total Liabilities

₹55 Cr

Total Debt

₹39 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹10 Cr

Capex

-₹12 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

85.2%

Corporate Actions

Ex-Dividend Date

19 Sept 2019

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

1 positive1 mixed4 general

Oceanic Foods shareholders approve cold storage slump sale to Julyys Foods

scanx.trade, 30 Sept

Oceanic Foods Ltd. Peer Comparison – Compare with Others

Value Research, 03 Sept

Oceanic Foods Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 29 Aug

How Ocean State Job Lot scores deals on the foods you love | Exclusive

The Providence Journal, 08 Sept

Inox Wind wins order for 200 MW wind project

Business Standard, 09 JulOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Q1 Results Today: Astral, Bata India, Muthoot Microfin, BEML among 260+ companies to announce earnings on August 11

Livemint, 11 AugResults

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

Watch Items

Revenue growth is negative (-0.8%) 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

🟡Business QualityAdequate12.4/20

🟡Financial HealthAdequate9.8/20

🟢GrowthStrong14.9/20

🟡ProfitabilityModerate8.5/15

🟢ValuationAttractive13.2/15

🔴RiskHigh4.4/10

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. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 18% a year23.7% CAGR
✓EBITDA margin holds above 7%8.8%
✗Debt / EBITDA stays below 2x2.7x
✗Free cash flow remains positive-₹3 Cr
✓Interest cover stays above 3x3.8x