SSMD Agrotech India Limited

Consumer Defensive — Packaged Foods · BSE

₹61.00₹0.00 (0.00%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:04 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

SSMD Agrotech India Limited engages in the manufacturing and trading of fast-moving consumer goods agro food products in India.

IndustryPackaged Foods

SectorConsumer Defensive

Employees48

Annual revenue₹115 Cr

How does it make money?

Turns over ₹115 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 48 employees supports ₹2.40 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin7.6%

Net margin4.8%

Revenue / employee₹2.40 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.

NESTLE INDIA LIMITEDP/E 59.8x · ROE 79.9%

BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%

TATA CONSUMER PRODUCT LTDP/E 59.3x · ROE 7.5%

DABUR INDIA LTDP/E 34.7x · ROE 17.2%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 20.5%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 23.6% 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.

ROCE20.5%

ROE23.6%

Peer median ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +138% while net margin moved -64686% 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-64686%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ 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

60/ 100

Average

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

Valuation

70/ 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

9.6x

1.0Y Median

9.8x

12 monthly readings · mean 9.4x · range 6.2x–10.7x

Sector Median

51.7x

median of 4 sector peers

🟡Currently trading close to its 1.0y median of 9.8x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 81% below the peer median of 51.7x.

vs. its own history

Fair

9.8x median over 12 months · -3%

vs. sector peers

Cheap

51.7x median of 4 peers · -81%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

9.6x

P/B

1.32x

EV/EBITDA

4.7x

PEG

3.43

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 1.7% to 7.6% over 3 years.
Debt is being paid down
Total debt is down 76% over 3 years.
Return on equity is rising
ROE has improved from -0.5% to 13.8%.
High return on capital employed
ROCE of 20.5% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention4

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on capital is falling
ROCE has declined from 30.9% to 20.5% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 755% against revenue growth of 138% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 252% against revenue growth of 138% — stock may not be moving.

Red Flags

5 items require attention · 4 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 3.62x — earnings must service borrowings before shareholders see anything.
🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 755% against revenue up 138% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 252% against revenue up 138% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹11 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.5% 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.
Margin expansion has further to run
EBITDA margin has risen from 1.7% to 7.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 76% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 81% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 3.62x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 755% against revenue up 138%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.
Several serious flags at once
4 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

1Revenue growth stays above 25% a year✓ 33.5% CAGR
Latest reported year was 16.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 7.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹11 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 20.5%
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 · 3 neutral · 2 weak

Market Cap

₹53 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.6x

Cheap

Cheap against the generic band

P/B Ratio

1.32x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹6.38

Profitable

Profitable on a per-share basis

ROE

23.6%

Strong

Strong capital efficiency

ROCE

20.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.62x

High

High leverage

Revenue Growth (YoY)

16.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

2.8%

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

-₹12 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹61

ROA

15.5%

Good

Assets are working hard

Operating Margin

4.4%

Weak

Thin margins leave little room for error

Net Margin

4.8%

Average

Average bottom-line conversion

Current Ratio

5.59

Comfortable

Healthy short-term liquidity

52W Range Position

61%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

59.6 / 60.0

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

71.6

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹49 Cr	₹73 Cr	₹99 Cr	₹115 Cr	+33.5%
EBITDA	₹1 Cr	₹3 Cr	₹9 Cr	₹9 Cr	+121.8%
EBITDA Margin	1.7%	4.4%	8.8%	7.6%	—
PAT (Net Profit)	-₹0 Cr	₹1 Cr	₹5 Cr	₹6 Cr	—
EPS	₹-0	₹1.27	₹6.21	—	—
ROE	-0.5%	83.2%	77.7%	13.8%	—
ROCE	30.9%	109.8%	100.2%	20.5%	—
Total Debt	₹6 Cr	₹7 Cr	₹6 Cr	₹1 Cr	-37.8%
Free Cash Flow	-₹3 Cr	₹0 Cr	₹2 Cr	-₹11 Cr	—

🟢 Revenue has grown at 33.5% a year over 3 years.

🟢 EBITDA has grown at 121.8% a year over 3 years.

🟢 EBITDA Margin has risen from 1.7% to 7.6% over 3 years (+6.0 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹6 Cr.

🟢 ROE has risen from -0.5% to 13.8% over 3 years (+14.4 pts).

🔴 ROCE has fallen from 30.9% to 20.5% over 3 years (-10.4 pts).

🟢 Total Debt has shrunk at 37.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹49 Cr

Total Liabilities

₹9 Cr

Total Debt

₹1 Cr

Cash & Equivalents

₹13 Cr

Operating Cash Flow

-₹10 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.0%

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

SSMD AGROTECH INDIA LIMITED Share Price

Upstox, 09 Oct

SSMD Agrotech India Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

SSMD Agrotech appoints Ajeet as CFO effective Oct 9

scanx.trade, 09 Oct

SSMD Agrotech India IPO : Check IPO date, lot size and Price

HDFC Sky, 25 Nov

Compare PHOTOQUIP(I) with

Equitymaster, 30 Sept

SSMD Agrotech IPO opens on Nov 25; here's everything you need to know

Business Standard, 25 Nov

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🟡Business QualityAdequate9.6/20

🟡Financial HealthAdequate11.9/20

🟢GrowthStrong13/20

🟢ProfitabilityStrong10.6/15

🟢ValuationAttractive11.8/15

🔴RiskHigh2.5/10

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. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 25% a year33.5% CAGR
✓EBITDA margin holds above 6%7.6%
✗Free cash flow remains positive-₹11 Cr
✓Debt / EBITDA stays below 2x0.2x
✓ROCE stays above 17%20.5%