Shri Gang Industries & Allied Products Limited

Consumer Defensive — Beverages - Wineries & Distilleries · BSE

₹47.00−₹1.15 (−2.39%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by moderate debt load, short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, but sales are shrinking. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Shri Gang Industries & Allied Products Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Shri Gang Industries & Allied Products Limited engages in the manufacture and sale of vanaspati, refined oils, and bakery shortening in India. The company operates in two segments, Liquor Operations and Edible Oil Operations.

IndustryBeverages - Wineries & Distilleries

SectorConsumer Defensive

Employees214

Annual revenue₹366 Cr

How does it make money?

Turns over ₹366 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 214 employees supports ₹1.71 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.71 Cr

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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 28.9%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 36.1% against a peer median of 51.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 +165% while net margin moved -47% 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+165%

Margin effect-47%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✓ ROCE of 28.9% is above 20% — the business earns a high return on the capital it employs
✗ ROCE has fallen by 3.1 points — returns are eroding
✗ EBITDA margin of 10.1% is thin — little cushion if costs rise
✗ Net margin of 5.4% is slim
• Revenue has compounded at 38.3% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

63/ 100

Average

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

Valuation

86/ 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

8.7x

40 monthly readings · mean 9.5x · range 3.5x–18.9x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 43% below its 3y median of 8.7x. 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 89% below the peer median of 43.3x.

vs. its own history

Cheap

8.7x median over 40 months · -43%

vs. sector peers

Cheap

43.3x median of 4 peers · -89%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

4.1x

PEG

0.41

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 60% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
High return on capital employed
ROCE of 28.9% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 32.0% to 28.9% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 watch

🟡Margins are compressingFinancial
EBITDA margin is down 3.2 points over 3 years.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.50 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 28.9% 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.
Deleveraging frees up earnings
Debt is down 60% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 43% 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 89% 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?

Margins are being competed away
EBITDA margin has fallen from 13.3% to 10.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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

1Revenue growth stays above 29% a year✓ 38.3% CAGR
Latest reported year was -1.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 10.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹21 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 26%✓ 28.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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 · 4 neutral · 1 weak

Market Cap

₹100 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

1.88x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹9.47

Profitable

Profitable on a per-share basis

ROE

36.1%

Strong

Strong capital efficiency

ROCE

28.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.97x

Moderate

Moderate leverage

Revenue Growth (YoY)

-1.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

89.8%

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

₹21 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

4.4%

Weak

Thin margins leave little room for error

Net Margin

5.4%

Average

Average bottom-line conversion

Current Ratio

0.50

Tight

Tight short-term liquidity

Beta (vs Nifty)

-1.86

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

51.9 / 57.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

17.5

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹138 Cr	₹265 Cr	₹324 Cr	₹366 Cr	+38.3%
EBITDA	₹18 Cr	₹31 Cr	₹49 Cr	₹37 Cr	+26.2%
EBITDA Margin	13.3%	11.6%	15.1%	10.1%	—
PAT (Net Profit)	₹13 Cr	₹15 Cr	₹29 Cr	₹19 Cr	+12.2%
EPS	₹8.65	₹8.25	₹13.6	—	—
ROE	—	—	276.5%	36.1%	—
ROCE	32.0%	41.1%	44.6%	28.9%	—
Total Debt	₹125 Cr	₹128 Cr	₹86 Cr	₹50 Cr	-26.4%
Free Cash Flow	-₹13 Cr	₹7 Cr	₹39 Cr	₹21 Cr	—

🟢 Revenue has grown at 38.3% a year over 3 years.

🟢 EBITDA has grown at 26.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 13.3% to 10.1% over 3 years (-3.2 pts).

🟢 PAT (Net Profit) has grown at 12.2% a year over 3 years.

🔴 ROE has fallen from 276.5% to 36.1% over 3 years (-240.4 pts).

🔴 ROCE has fallen from 32.0% to 28.9% over 3 years (-3.1 pts).

🟢 Total Debt has shrunk at 26.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹13 Cr to ₹21 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹156 Cr

Total Liabilities

₹105 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹26 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.9%

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

Ravi Kumar Distilleries (NSEI:RKDL) - Stock Analysis

Simply Wall Street, 15 Oct

52 Week Low Shares BSE | 52 Week Low Today | Shares Trading 52 Week Low BSE

Livemint, 16 Oct

Shri Gang Industries passes all AGM resolutions with high majority

scanx.trade, 26 Sept

Shri Gang Industries & Allied Products Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 31 Aug

Alcokraft Distilleries (NSEI:ALCODIS) - Stock Analysis

Simply Wall Street, 12 Oct

Sarvashaktiman Traders acquires 6.64% stake in Shri Gang Industries

scanx.trade, 09 Jun

Watch Items

Revenue growth is negative (-1.6%) on the latest reported period — check if this is one-off or a trend.
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.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Profitability · Valuation

MiddlingBusiness Quality · Growth · 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.

All 5 tripwires holding · see Key things to watch ↑