Orkla India Limited

Consumer Defensive — Packaged Foods · NSE

₹552.00+₹1.65 (+0.30%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, small-cap size, which brings sharper price swings.

In simple words: Reasonable but unspectacular business quality, 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, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Orkla India Limited operates as a food company, manufactures and sells spices and convenience foods in India and internationally.

IndustryPackaged Foods

SectorConsumer Defensive

Annual revenue₹2,493 Cr

How does it make money?

Turns over ₹2,493 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation.

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?Little sign of one

Returns on capital of 13.2% 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%

What is the outlook?

5 analysts covering the stock expect revenue to grow about 10.3% and earnings to grow about 14.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+10.3%

Est. earnings growth+14.8%

Analysts5

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings

Quality vs. Valuation

Company Quality

58/ 100

Average

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

Valuation

59/ 100

Fair

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

24.9x

Sector Median

51.7x

median of 4 sector peers

🟢Against its sector it trades 52% below the peer median of 51.7x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

51.7x median of 4 peers · -52%

vs. generic bands

Fair

15x–35x

EV/EBITDA

17.1x

PEG

2.24

Red Flags

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 2.28x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 52% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 2.28x. Interest is payable whether or not the business has a good year.
Growth barely outpaces inflation
Revenue compounding at 5.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Small 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

1EBITDA margin holds above 16%✓ 17.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 5.7% CAGR
Latest reported year was 10.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹239 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 13.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹7,562 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

24.9x

Fair

Fairly valued against the generic band

P/B Ratio

2.73x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹22.2

Profitable

Profitable on a per-share basis

ROE

10.4%

Moderate

Moderate capital efficiency

ROCE

13.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

2.28x

High

High leverage

Revenue Growth (YoY)

10.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

11.1%

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

₹239 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

20.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

15.2%

Good

Healthy core-business profitability

Net Margin

11.5%

Good

Strong bottom-line conversion

Current Ratio

2.61

Comfortable

Healthy short-term liquidity

52W Range Position

10%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

554.1 / 565.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

50.2

Neutral momentum

Financial Trend (2-Year)

Metric	FY25	FY26	1Y CAGR
Revenue	₹2,358 Cr	₹2,493 Cr	+5.7%
EBITDA	₹421 Cr	₹445 Cr	+5.7%
EBITDA Margin	17.9%	17.9%	—

🟢 Revenue has grown at 5.7% a year over 1 years.

🟢 EBITDA has grown at 5.7% a year over 1 years.

🟡 EBITDA Margin has held roughly flat at 17.9% over 1 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,402 Cr

Total Liabilities

₹652 Cr

Total Debt

₹63 Cr

Cash & Equivalents

₹21 Cr

Operating Cash Flow

₹261 Cr

Capex

-₹22 Cr

Shareholding (proxy)

Institutional Holding

9.1%

Insider Holding

83.3%

Analyst Consensus

Recommendations

6 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹741.67

+34.4% vs CMP

Target Range

₹680 – ₹800

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 positive3 mixed2 general

Analysts Have Made A Financial Statement On Orkla India Limited's (NSE:ORKLAINDIA) First-Quarter Report

Simply Wall Street, 07 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Orkla India Q1 Net Profit Rises to ₹87.7 Crore; Revenue At ₹660 Crore

Sahi, 04 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Orkla India Share Price Target 2027: Base and Bull Targets Built on FY26 Earnings

Univest, 09 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Orkla India IPO 2025: Price Band, Dates & How to Apply

INDmoney, 26 Mar

ORKLAINDIA Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Buy Orkla India; target of Rs 800: ICICI Securities

Moneycontrol.com, 05 Aug

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

StrongFinancial Health · Profitability

MiddlingBusiness Quality · Valuation

WeakGrowth · 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. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑