Silver Oak (India) Limited

Consumer Defensive — Beverages - Wineries & Distilleries · BSE

₹69.00−₹4.00 (−5.48%)

DalalBaazaar Score

36 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money. Cash generation is currently 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 Silver Oak (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Silver Oak (India) Limited is engaged in the manufacturing and processing of country liquor and operates in the distillery and alcohol manufacturing sector in India. It provides various products, such as whiskey, vodka, rum, gin, tango, etc.

IndustryBeverages - Wineries & Distilleries

SectorConsumer Defensive

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 -0.6% 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%

DalalBaazaar Score

36/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ No meaningful P/E — the company is lossmaking
✗ P/B of 6.95x is a steep premium to book

Quality vs. Valuation

Company Quality

38/ 100

Weak

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

Valuation

20/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

2422.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Return on capital is rising
ROCE has improved from -3.1% to -0.6%.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from -13.5% to -30.3% — each rupee of shareholder capital earns less than it did.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -0.1x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹1 Cr in the latest reported year.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 666.9x 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 -13.5% to -30.3%. 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

1Debt / EBITDA falls below 3x✗ 666.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
2Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -0.1x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ -0.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 10 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)
✗ 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

0 good · 4 neutral · 7 weak

Market Cap

₹26 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

6.95x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹-4.09

Loss-making

Negative earnings per share — the business is losing money

ROE

-30.3%

Weak

Weak capital efficiency

ROCE

-0.6%

Weak

Low return on total capital employed

Debt/Equity

0.65x

Moderate

Moderate leverage

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

-25.4%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.19

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

-0.48

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

73.2 / 74.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	₹0 Cr	₹1 Cr	—	—
EBITDA	-₹0 Cr	₹0 Cr	-₹0 Cr	₹0 Cr	—
EBITDA Margin	—	8259.3%	-0.0%	—	—
PAT (Net Profit)	-₹1 Cr	-₹1 Cr	-₹1 Cr	-₹1 Cr	—
EPS	₹-3.06	₹-3.04	₹-3.08	—	—
ROE	-13.5%	-15.5%	-18.6%	-30.3%	—
ROCE	-3.1%	-0.4%	-2.0%	-0.6%	—
Total Debt	₹8 Cr	₹8 Cr	₹9 Cr	₹10 Cr	+7.1%
Free Cash Flow	-₹2 Cr	-₹2 Cr	₹3 Cr	-₹1 Cr	—

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

🔴 ROE has fallen from -13.5% to -30.3% over 3 years (-16.8 pts).

🟢 ROCE has risen from -3.1% to -0.6% over 3 years (+2.5 pts).

🔴 Total Debt has grown at 7.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹29 Cr

Total Liabilities

₹14 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹1 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

84.5%

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

1 positive1 mixed4 general

Silver Oak (India) Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 29 Aug

Silver Oak submits AGM voting results; all resolutions pass with majority

scanx.trade, 29 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

NSE Price Band Hitters on July 1, 2026: Filatex Fashions, Grand Oak, Sylvan Ply in Focus

HDFC Sky, 01 Jul

Top Alcohol Penny Stocks in India for 2027

Univest, 29 Sept

TD Power Systems consolidated net profit rises 72.34% in the June 2026 quarter

Business Standard, 12 AugResults

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

Silver Oak India sets Sept 29 AGM; Suresh Kejriwal exits board

scanx.trade, 05 Sept

Watch Items

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

DalalBaazaar Thesis

MiddlingGrowth · Risk

WeakBusiness Quality · Financial Health · Profitability · Valuation

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

4 of 4 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑