Pervasive Commodities Limited

Consumer Defensive — Farm Products · BSE

₹12.32−₹0.25 (−1.99%)

DalalBaazaar Score

38 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:52 pm

Understanding the Business

Company site ↗

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

What does this company do?

Pervasive Commodities Limited engages in trading of agricultural commodities in India. It offers soft agricultural commodities, such as wheat, pulses, spices, grains, coffee, cocoa, and sugar; and hard commodities, including gold and oil.

IndustryFarm Products

SectorConsumer Defensive

Annual revenue₹43 Cr

How does it make money?

Turns over ₹43 Cr a year. Of every ₹100 of sales, about ₹-0 reaches shareholders as profit, with ₹38 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 0.0% 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

38/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ No meaningful P/E — the company is lossmaking

Quality vs. Valuation

Company Quality

46/ 100

Average

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

Valuation

19/ 100

Expensive

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.

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

67.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Return on capital is rising
ROCE has improved from -822.8% to 0.0%.

🔴 What Needs Attention0

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

Red Flags

5 items require attention · 3 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 0.6x — little room if earnings dip.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 3.2x to 0.6x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 94518% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 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 36%✓ 38.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹37 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ 0.6x
How much operating profit can fall before interest stops being comfortably covered.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 0.0%
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

₹1,110 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)

₹-164.2

Loss-making

Negative earnings per share — the business is losing money

ROE

-0.0%

Weak

Weak capital efficiency

ROCE

0.0%

Weak

Low return on total capital employed

Debt/Equity

0.36x

Low

Conservative leverage

Revenue Growth (YoY)

42.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-148.5%

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

-₹37 Cr

Cash burning

Spending more cash than the operations bring in

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

6.95

Comfortable

Healthy short-term liquidity

52W Range Position

90%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

12.0 / 9.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

67.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	₹1 Cr	₹30 Cr	₹43 Cr	—
EBITDA	-₹0 Cr	₹0 Cr	₹0 Cr	₹17 Cr	—
EBITDA Margin	—	14.3%	0.4%	38.3%	—
PAT (Net Profit)	-₹0 Cr	₹0 Cr	₹0 Cr	-₹0 Cr	—
EPS	₹-2.43	₹1.49	₹0	—	—
ROE	—	—	0.2%	-0.0%	—
ROCE	-822.8%	86.6%	0.2%	0.0%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+7.5%
Free Cash Flow	-₹0 Cr	-₹0 Cr	-₹28 Cr	-₹37 Cr	—

🟢 EBITDA has turned positive, from -₹0 Cr to ₹17 Cr.

🟢 EBITDA Margin has risen from 14.3% to 38.3% over 3 years (+24.0 pts).

🟡 ROE has held roughly flat at -0.0% over 3 years.

🟢 ROCE has risen from -822.8% to 0.0% over 3 years (+822.8 pts).

🔴 Total Debt has grown at 7.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹105 Cr

Total Liabilities

₹15 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹37 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

100.0%

Corporate Actions

Ex-Dividend Date

20 Sept 2019

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

2 negative4 general

Pervasive Commodities Limited (517172) Company Information

Simply Wall Street, 24 Sept

Pervasive Commodities Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 02 Sept

Pervasive Commodities AGM passes all 5 resolutions with 77.68% votes

scanx.trade, 29 Sept

Pervasive Commodities Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 04 Sept

Pervasive Commodities appoints new director and CFO, notes resignations

scanx.trade, 24 AugManagement

🔴Potentially negativeA senior departure, and an auditor's resignation especially, is worth understanding before anything else in this report.

Frontier Springs standalone net profit declines 18.52% in the June 2026 quarter

Business Standard, 13 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

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.

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health · Growth

WeakProfitability · Valuation · 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 — Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑