Solvex Edibles Limited

Consumer Defensive — Packaged Foods · BSE

₹14.52−₹0.76 (−4.97%)

DalalBaazaar Score

38 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by moderate debt load, 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, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Solvex Edibles Limited engages in manufacturing, distributing, marketing, and selling solvent extracted rice bran oils and by-products in India.

IndustryPackaged Foods

SectorConsumer Defensive

Employees14

Annual revenue₹154 Cr

How does it make money?

Turns over ₹154 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 14 employees supports ₹11.02 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹11.02 Cr

Who are its competitors?

The closest listed comparisons in its industry are NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD, TATA CONSUMER PRODUCT LTD, DABUR INDIA 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 10.8% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +66% while net margin moved -87% 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+66%

Margin effect-87%

DalalBaazaar Score

38/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ 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

39/ 100

Weak

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

Valuation

42/ 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.

Historical Valuation

Current P/E

161.3x

1.2Y Median

5.7x

14 monthly readings · mean 5.8x · range 3.2x–9.7x

Sector Median

51.7x

median of 4 sector peers

⚠️Current valuation is approximately 2735% above its 1.2y median of 5.7x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 212% above the peer median of 51.7x.

vs. its own history

Expensive

5.7x median over 14 months · +2735%

vs. sector peers

Expensive

51.7x median of 4 peers · +212%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

7.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 2.1% to 5.2% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 8.7% to 0.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 21.6% to 10.8% — often a sign of competition or overexpansion.

Red Flags

7 items require attention · 4 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 359% over 3 years, from ₹12 Cr to ₹55 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.3x — little room if earnings dip.
🔴Receivables growing faster than salesFinancial
Receivables up 251% against revenue up 66% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 376% against revenue up 66% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 2.7x to 1.3x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹2 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 79% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 2.1% to 5.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

The debt load needs earnings to hold up
Debt is 6.9x 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 251% against revenue up 66%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 2735% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 8.7% to 0.2%. 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.
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.

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

1Revenue growth stays above 14% a year✓ 18.4% CAGR
Latest reported year was 26.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 5.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 6.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹2 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 1.3x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

3 / 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

3 good · 4 neutral · 4 weak

Market Cap

₹13 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

161.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.34x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.09

Profitable

Profitable on a per-share basis

ROE

0.2%

Weak

Weak capital efficiency

ROCE

10.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.46x

Moderate

Moderate leverage

Revenue Growth (YoY)

26.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-98.3%

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

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

3.5%

Average

Average asset productivity

Operating Margin

2.5%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.53

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

18.1 / 19.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹93 Cr	₹72 Cr	₹135 Cr	₹154 Cr	+18.4%
EBITDA	₹2 Cr	₹3 Cr	₹12 Cr	₹8 Cr	+61.0%
EBITDA Margin	2.1%	4.5%	9.1%	5.2%	—
PAT (Net Profit)	₹0 Cr	₹1 Cr	₹4 Cr	₹0 Cr	-40.4%
EPS	₹0.37	₹1.13	₹4.57	—	—
ROE	8.7%	7.0%	20.3%	0.2%	—
ROCE	21.6%	6.8%	24.6%	10.8%	—
Total Debt	₹12 Cr	₹56 Cr	₹58 Cr	₹55 Cr	+66.2%
Free Cash Flow	₹0 Cr	-₹9 Cr	₹1 Cr	-₹2 Cr	—

🟢 Revenue has grown at 18.4% a year over 3 years.

🟢 EBITDA has grown at 61.0% a year over 3 years.

🟢 EBITDA Margin has risen from 2.1% to 5.2% over 3 years (+3.1 pts).

🔴 PAT (Net Profit) has shrunk at 40.4% a year over 3 years.

🔴 ROE has fallen from 8.7% to 0.2% over 3 years (-8.5 pts).

🔴 ROCE has fallen from 21.6% to 10.8% over 3 years (-10.8 pts).

🔴 Total Debt has grown at 66.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹114 Cr

Total Liabilities

₹76 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

-₹2 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

84.4%

Peer Comparison

Company	P/E	ROE
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%
TATA CONSUMER PRODUCT LTD	59.3x	7.5%
DABUR INDIA LTD	34.7x	17.2%

Recent News

6 general

Solvex Edibles Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Solvex Edibles 13th AGM resolutions pass with unanimous votes

scanx.trade, 30 Sept

Solvex Edibles Limited Share Price

Upstox, 05 May

Solvex Edibles schedules 13th AGM for September 30, approves RPT limits

scanx.trade, 02 Sept

Edible Oil Penny Stocks in India 2027: 5 Picks

Univest, 16 Sept

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

Livemint, 16 Oct

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.
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

MiddlingGrowth

WeakBusiness Quality · Financial Health · Profitability · Valuation · Risk

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. 4 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 ↑