Regaal Resources Limited

Consumer Defensive — Packaged Foods · NSE

₹88.02−₹0.87 (−0.98%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

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

In simple words: Reasonable but unspectacular business quality, 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 Regaal Resources Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Regaal Resources Limited operates as a maize milling company that manufactures and sells maize starch and its derivatives in India. The company offers starches, such as native starches maize and oxidized starch, yellow and white dextrin, and organic gulal.

IndustryPackaged Foods

SectorConsumer Defensive

Employees591

Annual revenue₹1,123 Cr

How does it make money?

Turns over ₹1,123 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 591 employees supports ₹1.90 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin11.6%

Net margin4.9%

Revenue / employee₹1.90 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?Little sign of one

Returns on capital of 11.7% 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.

ROCE11.7%

ROE11.4%

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 +136% while net margin moved +40% 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+136%

Margin effect+40%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

50/ 100

Average

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

Valuation

75/ 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

14.6x

1.3Y Median

16.7x

16 monthly readings · mean 16.8x · range 13.0x–24.6x

Sector Median

51.7x

median of 4 sector peers

🟢Current valuation is approximately 13% below its 1.3y median of 16.7x. 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 72% below the peer median of 51.7x.

vs. its own history

Fair

16.7x median over 16 months · -13%

vs. sector peers

Cheap

51.7x median of 4 peers · -72%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

14.6x

P/B

1.82x

EV/EBITDA

11.2x

PEG

0.30

Dividend Yield

0.28%

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 9.5% to 11.6% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Debt is rising
Total debt is up 211% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 14.9% to 11.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 14.8% to 11.7% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 211% over 3 years, from ₹198 Cr to ₹614 Cr.
🔴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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 9.5% to 11.6%. 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 72% 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 4.7x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 14.9% to 11.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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 25% a year✓ 33.2% CAGR
Latest reported year was -17.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 11.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.7x
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✗ -₹246 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.2x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

4 / 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

3 good · 6 neutral · 2 weak

Market Cap

₹907 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.6x

Cheap

Cheap against the generic band

P/B Ratio

1.82x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹6.04

Profitable

Profitable on a per-share basis

ROE

11.4%

Moderate

Moderate capital efficiency

ROCE

11.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.26x

Moderate

Moderate leverage

Revenue Growth (YoY)

-17.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

18.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.28%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹246 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹88.02

Operating Margin

12.7%

Average

Average margins

Net Margin

5.5%

Average

Average bottom-line conversion

Current Ratio

1.15

Adequate

Adequate, but no real cushion

52W Range Position

67%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

87.9 / 88.5

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

45.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹475 Cr	₹591 Cr	₹898 Cr	₹1,123 Cr	+33.2%
EBITDA	₹45 Cr	₹59 Cr	₹116 Cr	₹130 Cr	+42.0%
EBITDA Margin	9.5%	9.9%	12.9%	11.6%	—
PAT (Net Profit)	₹17 Cr	₹22 Cr	₹48 Cr	₹56 Cr	+49.1%
EPS	₹1.63	₹2.16	₹4.64	₹5.81	+52.7%
ROE	14.9%	16.4%	19.6%	11.4%	—
ROCE	14.8%	12.3%	17.8%	11.7%	—
Total Debt	₹198 Cr	₹362 Cr	₹512 Cr	₹614 Cr	+46.0%
Free Cash Flow	-₹35 Cr	-₹127 Cr	-₹139 Cr	-₹246 Cr	—

🟢 Revenue has grown at 33.2% a year over 3 years.

🟢 EBITDA has grown at 42.0% a year over 3 years.

🟢 EBITDA Margin has risen from 9.5% to 11.6% over 3 years (+2.0 pts).

🟢 PAT (Net Profit) has grown at 49.1% a year over 3 years.

🟢 EPS has grown at 52.7% a year over 3 years.

🔴 ROE has fallen from 14.9% to 11.4% over 3 years (-3.5 pts).

🔴 ROCE has fallen from 14.8% to 11.7% over 3 years (-3.1 pts).

🔴 Total Debt has grown at 46.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,337 Cr

Total Liabilities

₹847 Cr

Total Debt

₹614 Cr

Cash & Equivalents

₹65 Cr

Operating Cash Flow

₹70 Cr

Capex

-₹316 Cr

Shareholding (proxy)

Institutional Holding

1.2%

Insider Holding

73.7%

Corporate Actions

Dividend Rate

₹0.25

Ex-Dividend Date

16 Sept 2026

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 mixed1 negative4 general

REGAAL RESOURCES LIMITED Share Price

Upstox, 16 Oct

REGAAL Share Price Update: Rs 99.15, Market Cap Rs 861.34 Cr

Univest, 22 Sept

Regaal Resources fined ₹8 lakh by ROC for 2016 filing violation

scanx.trade, 15 OctRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

Regaal Resources Ltd Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Regaal Resources Reaches ₹10b Market Cap Benefiting Insider Stock Buying

Simply Wall Street, 23 Sept

Regaal Resources posts 47% rise in Q1 profit on higher margins

Moneycontrol.com, 18 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 (-17.9%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🔴Financial HealthStretched8.7/20

🟢GrowthStrong14.9/20

🟡ProfitabilityModerate7.1/15

🟢ValuationAttractive10.4/15

🔴RiskHigh2.4/10

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

This thesis breaks if

✓Revenue growth stays above 25% a year33.2% CAGR
✓EBITDA margin holds above 10%11.6%
✗Debt / EBITDA falls below 3x4.7x
✗Free cash flow remains positive-₹246 Cr
✓Interest cover stays above 3x3.2x