Simran Farms Limited

Consumer Defensive — Farm Products · BSE

₹189.85+₹7.35 (+4.03%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Strong business and financial position, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:57 pm

Understanding the Business

Company site ↗

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

What does this company do?

Simran Farms Limited engages in the poultry and poultry farming activities in India. It deals in broiler products; own manufacturing set-up for production of poultry feeds; and breeding and integration farms have scientific rearing and balanced nutrition management for each bird.

IndustryFarm Products

SectorConsumer Defensive

Employees792

Annual revenue₹875 Cr

How does it make money?

Turns over ₹875 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹2 left at the operating level before interest, tax and depreciation. Each of its 792 employees supports ₹1.10 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.10 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?Some evidence

ROCE of 18.7% 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%

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 +138% while net margin moved -41% 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+138%

Margin effect-41%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 8.8% is weak

Quality vs. Valuation

Company Quality

49/ 100

Average

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

Valuation

69/ 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

15.4x

3Y Median

14.4x

40 monthly readings · mean 66.2x · range 10.0x–230.6x

Sector Median

43.3x

median of 4 sector peers

🟡Currently trading close to its 3y median of 14.4x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 64% below the peer median of 43.3x.

vs. its own history

Fair

14.4x median over 40 months · +6%

vs. sector peers

Cheap

43.3x median of 4 peers · -64%

vs. generic bands

Fair

15x–35x

EV/EBITDA

9.4x

PEG

1.25

What's Good / What's Bad

🟢 What's Going Well2

Return on capital is rising
ROCE has improved from 15.7% to 18.7%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 3 watch

🟡Interest coverage is deterioratingFinancial
Cover has fallen from 10.4x to 3.1x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹9 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 27% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.7% 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 64% 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?

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

1Revenue growth stays above 25% a year✓ 33.6% CAGR
Latest reported year was 4.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 0%✓ 1.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹9 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.1x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

8 / 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

4 good · 6 neutral · 1 weak

Market Cap

₹91 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.4x

Fair

Fairly valued against the generic band

P/B Ratio

1.26x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹12.36

Profitable

Profitable on a per-share basis

ROE

8.8%

Moderate

Moderate capital efficiency

ROCE

18.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.57x

Low

Conservative leverage

Revenue Growth (YoY)

4.4%

Modest

Modest growth

Profit Growth (YoY)

0.6%

Modest

Slow profit growth

Dividend Yield

None

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

Free Cash Flow

-₹9 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

0.9%

Weak

Thin margins leave little room for error

Net Margin

0.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.29

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.16

Defensive

Steadier than the market

52W Range Position

88%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

178.3 / 170.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

58.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹367 Cr	₹486 Cr	₹834 Cr	₹875 Cr	+33.6%
EBITDA	₹7 Cr	₹4 Cr	₹11 Cr	₹13 Cr	+24.8%
EBITDA Margin	1.8%	0.7%	1.3%	1.5%	—
PAT (Net Profit)	₹4 Cr	₹0 Cr	₹6 Cr	₹5 Cr	+12.2%
EPS	₹9.44	₹1.01	₹14.45	₹13.07	+11.5%
ROE	11.6%	1.2%	14.4%	8.8%	—
ROCE	15.7%	7.3%	20.9%	18.7%	—
Total Debt	₹30 Cr	₹35 Cr	₹41 Cr	₹33 Cr	+3.4%
Free Cash Flow	-₹11 Cr	₹7 Cr	-₹14 Cr	-₹9 Cr	—

🟢 Revenue has grown at 33.6% a year over 3 years.

🟢 EBITDA has grown at 24.8% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 1.5% over 3 years.

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

🟢 EPS has grown at 11.5% a year over 3 years.

🔴 ROE has fallen from 11.6% to 8.8% over 3 years (-2.8 pts).

🟢 ROCE has risen from 15.7% to 18.7% over 3 years (+3.0 pts).

🔴 Total Debt has grown at 3.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹177 Cr

Total Liabilities

₹119 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹7 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

67.2%

Corporate Actions

Ex-Dividend Date

20 Sept 2012

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 mixed1 negative4 general

Simran Farms sets Sept 24 AGM for ₹400 crore RPT approval

scanx.trade, 24 Sept

Simran Farms Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Simran Farms Q1 FY27 Results: Revenue Grows to Rs 213 Crore, PAT Pat 83 Lakh

Univest, 17 AugResults

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

Simran Farms Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 29 Aug

Panacea Biotec consolidated net profit declines 43.21% in the June 2026 quarter

Business Standard, 14 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Simran Farms Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 30 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongValuation

MiddlingBusiness Quality · Financial Health · Growth

WeakProfitability · 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 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑