Sampre Nutritions Limited

Consumer Defensive — Confectioners · BSE

₹5.69−₹0.18 (−3.07%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, 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, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Sampre Nutritions Limited operates as a confectionery manufacturer in India and internationally. It offers éclairs, candies, toffees, powder, and center filled products primarily to MNCs.

IndustryConfectioners

SectorConsumer Defensive

Annual revenue₹43 Cr

How does it make money?

Turns over ₹43 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹11 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 2.4% 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 +17% while net margin moved +658% 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+17%

Margin effect+658%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 2.4% is below 10% — capital is not working hard
✗ ROCE has fallen by 4.4 points — returns are eroding
✗ EBITDA margin of 11.4% is thin — little cushion if costs rise
✗ Net margin of 6.5% is slim
• Revenue has compounded at 5.3% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

51/ 100

Average

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

Valuation

84/ 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

5.0x

3Y Median

137.0x

40 monthly readings · mean 200.7x · range 3.7x–625.6x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 96% below its 3y median of 137.0x. 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 88% below the peer median of 43.3x.

vs. its own history

Cheap

137.0x median over 40 months · -96%

vs. sector peers

Cheap

43.3x median of 4 peers · -88%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

14.6x

PEG

0.05

What's Good / What's Bad

🟢 What's Going Well1

Very low debt
Debt/Equity of 0.17x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 6.8% to 2.4% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 2 high · 2 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 78% against revenue up 17% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹3 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 246% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 96% 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 88% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 3.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 78% against revenue up 17%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 5.3% 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.
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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 9%✓ 11.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.6x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 2.6x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 4% a year✓ 5.3% CAGR
Latest reported year was 36.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

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

6 good · 2 neutral · 3 weak

Market Cap

₹54 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

5.0x

Cheap

Cheap against the generic band

P/B Ratio

0.45x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.13

Profitable

Profitable on a per-share basis

ROE

2.9%

Weak

Weak capital efficiency

ROCE

2.4%

Weak

Low return on total capital employed

Debt/Equity

0.17x

Low

Conservative leverage

Revenue Growth (YoY)

36.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

288.2%

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 burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

6.7%

Average

Average margins

Net Margin

6.5%

Average

Average bottom-line conversion

Current Ratio

1.60

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.46

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

5.8 / 5.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹37 Cr	₹25 Cr	₹25 Cr	₹43 Cr	+5.3%
EBITDA	₹4 Cr	₹4 Cr	-₹4 Cr	₹5 Cr	+7.1%
EBITDA Margin	10.8%	16.9%	-15.3%	11.4%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	-₹8 Cr	₹3 Cr	+106.9%
EPS	₹0.15	₹0.06	₹-5.43	₹1.46	+112.3%
ROE	1.6%	1.0%	-8.4%	2.9%	—
ROCE	6.8%	7.4%	-5.7%	2.4%	—
Total Debt	₹17 Cr	₹18 Cr	₹17 Cr	₹18 Cr	+2.2%
Free Cash Flow	-₹4 Cr	₹0 Cr	-₹0 Cr	-₹3 Cr	—

🟢 Revenue has grown at 5.3% a year over 3 years.

🟢 EBITDA has grown at 7.1% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 11.4% over 3 years.

🟢 PAT (Net Profit) has grown at 106.9% a year over 3 years.

🟢 EPS has grown at 112.3% a year over 3 years.

🟢 ROE has risen from 1.6% to 2.9% over 3 years (+1.2 pts).

🔴 ROCE has fallen from 6.8% to 2.4% over 3 years (-4.4 pts).

🔴 Total Debt has grown at 2.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹134 Cr

Total Liabilities

₹27 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

3.8%

Insider Holding

56.8%

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

1 positive5 general

Sampre Nutritions allots 17.7 lakh shares to promoters via loan conversion

scanx.trade, 25 Sept

Small-cap stock under ₹50, Sampre Nutritions jumps 5% after this capex update

Livemint, 06 Feb

Sampre Nutritions to Trade Ex-Split & Bonus on Nov 14

HDFC Sky, 10 Nov

Sampre Nutritions gets BSE nod for ₹7.44 crore promoter loan conversion

scanx.trade, 29 Aug

Sampre Nutritions Ltd has entered into a Manufacturing Agreement with Reliance Consumer Products Ltd

Business Standard, 24 Oct

Upcoming Bonus Issue, Stock Split: Smallcap company with 475% return in 6 months revises record date—Do you own?

Zee Business, 02 NovCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

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 · Growth · Valuation

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

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑