Pajson Agro India Limited

Consumer Defensive — Packaged Foods · BSE

₹338.45−₹17.80 (−5.00%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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, 6:02 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 Pajson Agro India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Pajson Agro India Limited engages in the manufacturing and trading of cashew kernels and other dry fruit in India. It offers almond and pistachios kernels, mewa, raw cashew nuts, cashew husk, borma cashew kernels, and cashew nut shells, as well as other products.

IndustryPackaged Foods

SectorConsumer Defensive

Employees473

Annual revenue₹256 Cr

How does it make money?

Turns over ₹256 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 473 employees supports ₹54.1 lakh of revenue a year, the signature of a people-led business.

EBITDA margin14.7%

Net margin9.7%

Revenue / employee₹54.1 lakh

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 25.8% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE25.8%

ROE27.5%

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 +153% while net margin moved +58588% 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+153%

Margin effect+58588%

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

80/ 100

Excellent

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

Valuation

64/ 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

25.1x

1.0Y Median

23.9x

12 monthly readings · mean 25.0x · range 17.4x–39.5x

Sector Median

51.7x

median of 4 sector peers

🟡Currently trading close to its 1.0y median of 23.9x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 51% below the peer median of 51.7x.

vs. its own history

Fair

23.9x median over 12 months · +5%

vs. sector peers

Cheap

51.7x median of 4 peers · -51%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

25.1x

P/B

5.92x

EV/EBITDA

20.9x

PEG

0.02

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 1.1% to 14.7% over 3 years.
Return on equity is rising
ROE has improved from 0.1% to 18.2%.
Return on capital is rising
ROCE has improved from 0.5% to 25.8%.
High return on capital employed
ROCE of 25.8% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.25x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 1794% against revenue growth of 153% — customers are taking longer to pay.

Red Flags

3 items require attention · 2 high · 1 watch

🔴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 1794% against revenue up 153% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹35 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 25.8% 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 1.1% to 14.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 51% 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 1794% against revenue up 153%. 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
2 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 27% a year✓ 36.2% 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 13%✓ 14.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹35 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 23%✓ 25.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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 · 3 neutral · 2 weak

Market Cap

₹806 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

25.1x

Fair

Fairly valued against the generic band

P/B Ratio

5.92x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹13.49

Profitable

Profitable on a per-share basis

ROE

27.5%

Strong

Strong capital efficiency

ROCE

25.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.25x

Low

Conservative leverage

Revenue Growth (YoY)

36.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

21.4%

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

-₹41 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹338.45

ROA

17.6%

Good

Assets are working hard

Operating Margin

11.4%

Average

Average margins

Net Margin

9.7%

Average

Average bottom-line conversion

Current Ratio

2.51

Comfortable

Healthy short-term liquidity

52W Range Position

75%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

268.1 / 228.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

73.6

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹101 Cr	₹96 Cr	₹187 Cr	₹256 Cr	+36.2%
EBITDA	₹1 Cr	₹6 Cr	₹30 Cr	₹38 Cr	+223.5%
EBITDA Margin	1.1%	5.9%	16.1%	14.7%	—
PAT (Net Profit)	₹0 Cr	₹3 Cr	₹20 Cr	₹25 Cr	+1040.6%
EPS	₹0.01	₹1.41	₹8.57	—	—
ROE	0.1%	14.1%	46.2%	18.2%	—
ROCE	0.5%	18.8%	62.9%	25.8%	—
Total Debt	—	₹15 Cr	₹15 Cr	₹34 Cr	—
Free Cash Flow	₹11 Cr	-₹14 Cr	₹6 Cr	-₹35 Cr	—

🟢 Revenue has grown at 36.2% a year over 3 years.

🟢 EBITDA has grown at 223.5% a year over 3 years.

🟢 EBITDA Margin has risen from 1.1% to 14.7% over 3 years (+13.6 pts).

🟢 PAT (Net Profit) has grown at 1040.6% a year over 3 years.

🟢 ROE has risen from 0.1% to 18.2% over 3 years (+18.1 pts).

🟢 ROCE has risen from 0.5% to 25.8% over 3 years (+25.3 pts).

🔴 Free Cash Flow has turned negative, from ₹11 Cr to -₹35 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹196 Cr

Total Liabilities

₹60 Cr

Total Debt

₹34 Cr

Cash & Equivalents

₹55 Cr

Operating Cash Flow

-₹14 Cr

Capex

-₹21 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

83.3%

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

Pajson Agro India Lower Circuit Today: Price, Data and Peers

Univest, 15 Oct

Pajson Agro India Upper Circuit Today: Price, Data and Peers

Univest, 14 Oct

Pajson Agro India Ltd Peer Comparison – Compare with Others

Value Research, 21 Sept

Pajson Agro India hosts virtual investor meet on Sep 25

scanx.trade, 21 Sept

Pajson Agro Bets on a Bigger Plant, Vietnamese Hand-to-Scale Cashew Business

ANI News, 30 Jul

Pajson Agro India IPO : Check IPO date, lot size and Price

HDFC Sky, 05 Dec

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🟢Business QualityStrong15.4/20

🟢Financial HealthStrong14.5/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong11.8/15

🔴ValuationDemanding6.5/15

🔴RiskHigh2.5/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 27% a year36.2% CAGR
✓EBITDA margin holds above 13%14.7%
✗Free cash flow remains positive-₹35 Cr
✓Debt / EBITDA stays below 2x0.9x
✓ROCE stays above 23%25.8%