Orient Beverages Limited

Consumer Defensive — Beverages - Non-Alcoholic · BSE

₹164.35+₹4.65 (+2.91%)

DalalBaazaar Score

55 / 100

🟡 Moderate

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, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Orient Beverages Limited, together with its subsidiaries, engages in the beverages business in India. The company manufactures, markets, and trades in packaged drinking water and carbonated Soft Drinks under the BISLERI brand name. It also deals in the real estate activities.

IndustryBeverages - Non-Alcoholic

SectorConsumer Defensive

Employees545

Annual revenue₹175 Cr

How does it make money?

Turns over ₹175 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 545 employees supports ₹32.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹32.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSUMER PRODUCT 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 15.3% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +54% while net margin moved -12% 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+54%

Margin effect-12%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Beta of 1.23 — 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

52/ 100

Average

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

Valuation

84/ 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

8.4x

3Y Median

16.9x

40 monthly readings · mean 340.5x · range 9.2x–1347.2x

Sector Median

59.3x

median of 3 sector peers

🟢Current valuation is approximately 50% below its 3y median of 16.9x. 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 59.3x.

vs. its own history

Cheap

16.9x median over 40 months · -50%

vs. sector peers

Cheap

59.3x median of 3 peers · -86%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.3x

PEG

0.78

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 20.7% to 15.3% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 57% over 3 years, from ₹70 Cr to ₹111 Cr.
🔴High leverageFinancial
Debt/Equity of 4.40x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.7x — little room if earnings dip.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

The debt load needs earnings to hold up
Debt is 6.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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

1Revenue growth stays above 12% a year✓ 15.5% CAGR
Latest reported year was 14.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 9.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 6.5x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 1.7x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

7 / 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

7 good · 2 neutral · 2 weak

Market Cap

₹36 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.4x

Cheap

Cheap against the generic band

P/B Ratio

1.41x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹19.66

Profitable

Profitable on a per-share basis

ROE

15.3%

Strong

Strong capital efficiency

ROCE

15.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

4.40x

High

High leverage

Revenue Growth (YoY)

14.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

24.2%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

5.8%

Average

Average margins

Net Margin

2.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.23

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.23

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

162.3 / 170.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

51.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹113 Cr	₹149 Cr	₹161 Cr	₹175 Cr	+15.5%
EBITDA	₹11 Cr	₹17 Cr	₹14 Cr	₹17 Cr	+15.6%
EBITDA Margin	9.7%	11.3%	8.4%	9.7%	—
PAT (Net Profit)	₹3 Cr	₹0 Cr	₹3 Cr	₹4 Cr	+10.7%
EPS	₹13.09	₹0.25	₹13.97	₹17.77	+10.7%
ROE	16.0%	0.3%	14.4%	15.3%	—
ROCE	20.7%	23.8%	16.5%	15.3%	—
Total Debt	₹70 Cr	₹67 Cr	₹76 Cr	₹111 Cr	+16.3%
Free Cash Flow	-₹16 Cr	₹6 Cr	-₹4 Cr	-₹1 Cr	—

🟢 Revenue has grown at 15.5% a year over 3 years.

🟢 EBITDA has grown at 15.6% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 9.7% over 3 years.

🟢 PAT (Net Profit) has grown at 10.7% a year over 3 years.

🟢 EPS has grown at 10.7% a year over 3 years.

🟡 ROE has held roughly flat at 15.3% over 3 years.

🔴 ROCE has fallen from 20.7% to 15.3% over 3 years (-5.5 pts).

🔴 Total Debt has grown at 16.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹174 Cr

Total Liabilities

₹149 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

67.7%

Corporate Actions

Ex-Dividend Date

22 Dec 2020

Peer Comparison

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

Recent News

1 mixed5 general

Orient Beverages (BSE:507690) - Stock Analysis

Simply Wall Street, 13 Oct

Orient Beverages appoints Namrata Goenka as independent director

scanx.trade, 30 Sept

Orient Beverages (BSE: ORIBEVER): A Small Bottler's Story

Kalkine India, 14 Sept

Orient Beverages shareholders approve ₹200 crore borrowing limit

scanx.trade, 29 Sept

Spring Water Market Size, Share, Trends and Analysis, 2034

Market Data Forecast, 04 Sept

CSM Technologies reports consolidated net loss of Rs 8.31 crore in the June 2026 quarter

Business Standard, 15 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

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

StrongGrowth · Valuation

MiddlingProfitability

WeakBusiness Quality · Financial Health · Risk

Points for each in the Score ↑

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.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑