Sun Retail Limited

Consumer Defensive — Packaged Foods · BSE

₹0.38₹0.00 (0.00%)

DalalBaazaar Score

40 / 100

🟡 Moderate

Verdict

CAUTION

Risk

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, 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 Sun Retail Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Sun Retail Limited engages in branding and trading of refined and filtered edible oils in India. The company primarily offers cottonseed, groundnut, and sunflower oils. It also engages in the bulk trade of palmolein and soyabean oils, as well as non-agro commodities.

IndustryPackaged Foods

SectorConsumer Defensive

Annual revenue₹7 Cr

How does it make money?

Turns over ₹7 Cr a year. Of every ₹100 of sales, about ₹-2 reaches shareholders as profit, with ₹-3 left at the operating level before interest, tax and depreciation.

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 -1.2% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -43% while net margin moved -77% 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-43%

Margin effect-77%

DalalBaazaar Score

40/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 17.1% a year
✗ Profit fell 199.5% in the latest year

Quality vs. Valuation

Company Quality

39/ 100

Weak

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

Valuation

36/ 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

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from -10.0% to -2.9% over 3 years.
Debt is being paid down
Total debt is down 46% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -8.2% to -1.0%.
Return on capital is rising
ROCE has improved from -5.7% to -1.2%.
Very low debt
Debt/Equity of 0.21x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 high

🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -10.0% to -2.9%. 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 46% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹2 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 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

1EBITDA margin holds above -5%✓ -2.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ -1.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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 · 2 neutral · 6 weak

Market Cap

₹6 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

0.36x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.01

Loss-making

Negative earnings per share — the business is losing money

ROE

-1.0%

Weak

Weak capital efficiency

ROCE

-1.2%

Weak

Low return on total capital employed

Debt/Equity

0.21x

Low

Conservative leverage

Revenue Growth (YoY)

193.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-199.5%

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

ROA

-0.4%

Weak

Assets generate little profit

Operating Margin

-2.5%

Weak

Thin margins leave little room for error

Net Margin

-2.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.34

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.86

Market-like

Moves roughly in line with the market

52W Range Position

44%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

0.4 / 0.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

33.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹13 Cr	₹97 Cr	₹40 Cr	₹7 Cr	-17.1%
EBITDA	-₹1 Cr	₹1 Cr	₹0 Cr	-₹0 Cr	—
EBITDA Margin	-10.0%	0.6%	0.4%	-2.9%	—
PAT (Net Profit)	-₹1 Cr	₹1 Cr	₹0 Cr	-₹0 Cr	—
EPS	₹-0.08	₹0.07	₹0.01	—	—
ROE	-8.2%	6.8%	1.0%	-1.0%	—
ROCE	-5.7%	6.0%	0.9%	-1.2%	—
Total Debt	₹7 Cr	₹2 Cr	₹5 Cr	₹4 Cr	-18.8%
Free Cash Flow	-₹1 Cr	₹8 Cr	-₹0 Cr	₹2 Cr	—

🔴 Revenue has shrunk at 17.1% a year over 3 years.

🟢 EBITDA Margin has risen from -10.0% to -2.9% over 3 years (+7.1 pts).

🟢 ROE has risen from -8.2% to -1.0% over 3 years (+7.2 pts).

🟢 ROCE has risen from -5.7% to -1.2% over 3 years (+4.5 pts).

🟢 Total Debt has shrunk at 18.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹25 Cr

Total Liabilities

₹8 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹2 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

12.2%

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

Sun Pharma down 2%, stock hits over 5-month low

Business Standard, 14 Oct

Sun Retail approves 46.98 crore equity warrants in preferential issue

scanx.trade, 01 Oct

Aditya Birla Sun Life AMC launches two retail funds from GIFT City

BusinessLine, 16 Oct

Sun Art Retail Group (SEHK:6808) Faces A Fresh Test As Undervalued View Meets Store Revamp

Yahoo Finance, 09 Oct

The excess tranquility puzzle

Acadian Asset Management, 14 May

Small investors became a major stock market force. Now, they risk getting pushed back into the dark

CNBC, 12 Aug

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health

MiddlingValuation

WeakBusiness Quality · Growth · Profitability · 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. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 3 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑