Shanti Guru Industries Limited

Consumer Defensive — Food Distribution · BSE

₹8.50₹0.00 (0.00%)

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. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

Shanti Guru Industries Limited engages in the trading of processed food products in India. It is also involved in retail trading business. The company was formerly known as RCL Retail Limited and changed its name to Shanti Guru Industries Limited in October 2022.

IndustryFood Distribution

SectorConsumer Defensive

Annual revenue₹0 Cr

How does it make money?

Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹4961 reaches shareholders as profit, with ₹6111 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?Some evidence

ROCE of 50.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE51.0%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.69 — historically steadier than the index
✗ 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

70/ 100

Good

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

Valuation

87/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

0.9x

Sector Median

43.3x

median of 4 sector peers

🟢Against its sector it trades 98% below the peer median of 43.3x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

43.3x median of 4 peers · -98%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

0.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Return on equity is rising
ROE has improved from -0.5% to 45.1%.
Return on capital is rising
ROCE has improved from -0.4% to 50.3%.
High return on capital employed
ROCE of 50.3% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

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

Red Flags

2 items require attention · 1 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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹3 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 50.3% 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.
Cheaper than its peers
It trades 98% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 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.

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

1EBITDA margin holds above 6109%✓ 6110.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 47%✓ 50.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 9 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ 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 · 4 neutral · 1 weak

Market Cap

₹10 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

0.9x

Cheap

Cheap against the generic band

P/B Ratio

0.42x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹9.12

Profitable

Profitable on a per-share basis

ROE

58.2%

Strong

Strong capital efficiency

ROCE

50.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

6961.5%

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

ROA

-3.0%

Weak

Assets generate little profit

Operating Margin

-448.4%

Weak

Thin margins leave little room for error

Net Margin

4961.9%

Good

Strong bottom-line conversion

Current Ratio

14.49

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.69

Defensive

Steadier than the market

52W Range Position

34%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

8.7 / 8.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
EBITDA	-₹0 Cr	-₹0 Cr	-₹0 Cr	₹14 Cr	—
PAT (Net Profit)	-₹0 Cr	-₹0 Cr	-₹0 Cr	₹11 Cr	—
EPS	₹-0.05	₹-80.95	₹-0.13	—	—
ROE	-0.5%	-0.7%	-1.2%	45.1%	—
ROCE	-0.4%	-1.2%	-1.2%	50.3%	—
Total Debt	₹1 Cr	₹0 Cr	—	—	—
Free Cash Flow	-₹2 Cr	₹4 Cr	-₹1 Cr	-₹3 Cr	—

🟢 EBITDA has turned positive, from -₹0 Cr to ₹14 Cr.

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹11 Cr.

🟢 ROE has risen from -0.5% to 45.1% over 3 years (+45.5 pts).

🟢 ROCE has risen from -0.4% to 50.3% over 3 years (+50.7 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹28 Cr

Total Liabilities

₹3 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

48.5%

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

6 general

Shanti Guru Industries turns profitable with ₹1,123.22 lakh PAT in FY26

scanx.trade, 27 May

Shanti Guru Industries 16th AGM resolutions pass with 96.93% votes

scanx.trade, 26 Sept

VPAL Stock Price and Chart — BSE:VPAL

TradingView, 27 May

Shanti Guru Industries Ltd

Equitypandit, 26 Jan

Best Multibagger Penny Stocks for 2026: High Growth Opportunities

Analytics Insight, 14 Jun

Shanti Guru Industries (BSE:534708) - Stock Analysis

Simply Wall Street, 08 Nov

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongBusiness Quality · Profitability · Valuation

MiddlingFinancial Health · Growth

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 3 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑