Regent Enterprises Limited

Consumer Defensive — Packaged Foods · BSE

₹5.41+₹0.28 (+5.46%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

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

What does this company do?

Regent Enterprises Limited engages in the trading, packaging, and sale of edible oils primarily in India. It provides soyabean, mustard, sunflower, groundnut, canola, palmoleine, blended vegetable, and olive pomace oils.

IndustryPackaged Foods

SectorConsumer Defensive

Employees47

Annual revenue₹1,126 Cr

How does it make money?

Turns over ₹1,126 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹0 left at the operating level before interest, tax and depreciation. Each of its 47 employees supports ₹23.95 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹23.95 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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 11.9% 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 has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +52% while net margin moved -331% 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+52%

Margin effect-331%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of -0.17 — historically steadier than the index
✗ 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

Quality vs. Valuation

Company Quality

54/ 100

Average

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

Valuation

88/ 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

3.7x

2Y Median

20.5x

28 monthly readings · mean 23.4x · range 4.5x–50.4x

Sector Median

51.7x

median of 4 sector peers

🟢Current valuation is approximately 82% below its 2y median of 20.5x. 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 93% below the peer median of 51.7x.

vs. its own history

Cheap

20.5x median over 28 months · -82%

vs. sector peers

Cheap

51.7x median of 4 peers · -93%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

3.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 829% over 3 years.
Return on equity is rising
ROE has improved from -3.0% to 9.1%.
Return on capital is rising
ROCE has improved from -3.5% to 11.9%.

🔴 What Needs Attention0

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

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 303% over 3 years, from ₹0 Cr to ₹2 Cr.
🔴High leverageFinancial
Debt/Equity of 4.18x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 82% 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 93% 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 4.18x. Interest is payable whether or not the business has a good year.
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 11% a year✓ 14.9% CAGR
Latest reported year was -42.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -2%✓ 0.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 9%✓ 11.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

5 good · 4 neutral · 2 weak

Market Cap

₹18 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

3.7x

Cheap

Cheap against the generic band

P/B Ratio

0.42x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.46

Profitable

Profitable on a per-share basis

ROE

9.1%

Moderate

Moderate capital efficiency

ROCE

11.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

4.18x

High

High leverage

Revenue Growth (YoY)

-42.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

55.1%

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

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

1.2%

Weak

Thin margins leave little room for error

Net Margin

0.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.43

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.17

Defensive

Steadier than the market

52W Range Position

40%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

5.2 / 5.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

54.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹742 Cr	₹673 Cr	₹749 Cr	₹1,126 Cr	+14.9%
EBITDA	-₹1 Cr	₹1 Cr	₹6 Cr	₹6 Cr	—
EBITDA Margin	-0.1%	0.2%	0.8%	0.5%	—
PAT (Net Profit)	-₹1 Cr	₹1 Cr	₹1 Cr	₹4 Cr	—
EPS	₹-0.34	₹0.19	₹0.31	₹1.19	—
ROE	-3.0%	1.7%	2.6%	9.1%	—
ROCE	-3.5%	3.9%	4.5%	11.9%	—
Total Debt	₹0 Cr	₹2 Cr	₹2 Cr	₹2 Cr	+59.2%
Free Cash Flow	₹0 Cr	-₹3 Cr	₹0 Cr	₹3 Cr	+110.2%

🟢 Revenue has grown at 14.9% a year over 3 years.

🟢 EBITDA has turned positive, from -₹1 Cr to ₹6 Cr.

🟡 EBITDA Margin has held roughly flat at 0.5% over 3 years.

🟢 PAT (Net Profit) has turned positive, from -₹1 Cr to ₹4 Cr.

🟢 EPS has turned positive, from ₹-0.34 to ₹1.19.

🟢 ROE has risen from -3.0% to 9.1% over 3 years (+12.1 pts).

🟢 ROCE has risen from -3.5% to 11.9% over 3 years (+15.4 pts).

🔴 Total Debt has grown at 59.2% a year over 3 years.

🟢 Free Cash Flow has grown at 110.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹62 Cr

Total Liabilities

₹18 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

51.9%

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

2 positive4 general

Regent Enterprises passes all six resolutions at 32nd AGM

scanx.trade, 24 Sept

Regent Enterprises standalone net profit rises 54.27% in the June 2026 quarter

Business Standard, 13 AugResults

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

Regent Enterprises re-appoints Vikas Kumar as WTD for five years

scanx.trade, 12 Aug

DOLPHIN Stock Price and Chart — NSE:DOLPHIN

TradingView, 07 Sept

Bridge Securities (BSE:530249) - Stock Analysis

Simply Wall Street, 10 Sept

Regent Enterprises Q1FY27 net profit up 54% to ₹2.53 crore

scanx.trade, 12 AugResults

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

Watch Items

Revenue growth is negative (-42.1%) 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

StrongValuation

MiddlingBusiness Quality · Financial Health · Growth · Profitability

WeakRisk

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

All 5 tripwires holding · see Key things to watch ↑