Shri Venkatesh Refineries Limited

Consumer Defensive — Packaged Foods · BSE

₹734.00+₹9.95 (+1.37%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

CAUTION

Risk

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 both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Shri Venkatesh Refineries Limited engages in manufacturing and trading of refined and raw oil in India. It is also involved in refining, packaging, selling, trades, and preserves edible oil, soyabean oil, sunflower oil, cooking oil, cotton seed oil, and palm oil.

IndustryPackaged Foods

SectorConsumer Defensive

Employees17

Annual revenue₹1,378 Cr

How does it make money?

Turns over ₹1,378 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 17 employees supports ₹81.03 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹81.03 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 30.9%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 33.7% 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.

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 +119% while net margin moved +22% 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+119%

Margin effect+22%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 43.6x is demanding — it needs sustained high growth to justify
✗ P/E is 45% above its own historical median of 30.0x — expensive by its own standards
✗ P/B of 12.35x is a steep premium to book

Quality vs. Valuation

Company Quality

66/ 100

Good

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

Valuation

38/ 100

Expensive

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

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

43.6x

3Y Median

30.0x

40 monthly readings · mean 31.7x · range 11.1x–90.2x

Sector Median

51.7x

median of 4 sector peers

⚠️Current valuation is approximately 45% above its 3y median of 30.0x. 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 16% below the peer median of 51.7x.

vs. its own history

Expensive

30.0x median over 40 months · +45%

vs. sector peers

Fair

51.7x median of 4 peers · -16%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

25.7x

PEG

1.13

What's Good / What's Bad

🟢 What's Going Well4

Return on equity is rising
ROE has improved from 21.7% to 29.1%.
Return on capital is rising
ROCE has improved from 24.7% to 30.9%.
High return on capital employed
ROCE of 30.9% is the mark of a business that converts capital into profit efficiently.
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

6 items require attention · 6 high

🔴Debt has risen sharplyFinancial
Total debt is up 306% over 3 years, from ₹77 Cr to ₹313 Cr.
🔴High leverageFinancial
Debt/Equity of 2.38x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴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 1496% against revenue up 119% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 188% against revenue up 119% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 30.9% 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.
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 4.2x 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 1496% against revenue up 119%. 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 45% 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.
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
6 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 22% a year✓ 29.9% CAGR
Latest reported year was 108.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 5.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.2x
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✗ -₹118 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.6x
How much operating profit can fall before interest stops being comfortably covered.

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

5 good · 2 neutral · 4 weak

Market Cap

₹1,624 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

43.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

12.35x

Rich

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

EPS (TTM)

₹16.84

Profitable

Profitable on a per-share basis

ROE

33.7%

Strong

Strong capital efficiency

ROCE

30.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.38x

High

High leverage

Revenue Growth (YoY)

108.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

119.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.14%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹141 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

9.6%

Good

Assets are working hard

Operating Margin

5.3%

Average

Average margins

Net Margin

2.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.36

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-1.09

Defensive

Steadier than the market

52W Range Position

99%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

659.7 / 573.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

86.5

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹629 Cr	₹575 Cr	₹702 Cr	₹1,378 Cr	+29.9%
EBITDA	₹28 Cr	₹29 Cr	₹36 Cr	₹75 Cr	+39.7%
EBITDA Margin	4.4%	5.1%	5.2%	5.4%	—
PAT (Net Profit)	₹14 Cr	₹15 Cr	₹18 Cr	₹38 Cr	+38.6%
EPS	₹6.48	₹6.79	₹8.17	—	—
ROE	21.7%	18.9%	18.9%	29.1%	—
ROCE	24.7%	24.5%	20.3%	30.9%	—
Total Debt	₹77 Cr	₹124 Cr	₹183 Cr	₹313 Cr	+59.5%
Free Cash Flow	₹4 Cr	-₹34 Cr	-₹46 Cr	-₹118 Cr	—

🟢 Revenue has grown at 29.9% a year over 3 years.

🟢 EBITDA has grown at 39.7% a year over 3 years.

🟢 EBITDA Margin has risen from 4.4% to 5.4% over 3 years (+1.1 pts).

🟢 PAT (Net Profit) has grown at 38.6% a year over 3 years.

🟢 ROE has risen from 21.7% to 29.1% over 3 years (+7.4 pts).

🟢 ROCE has risen from 24.7% to 30.9% over 3 years (+6.2 pts).

🔴 Total Debt has grown at 59.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹4 Cr to -₹118 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹587 Cr

Total Liabilities

₹455 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

-₹70 Cr

Capex

-₹48 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

85.3%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

24 Sept 2026

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

2 positive4 general

Strong Momentum Meets Stretched Valuations as Shri Venkatesh Refineries Ltd Reaches All-Time High

MarketsMojo, 15 Oct

Shri Venkatesh Refineries Ltd. Share Price Near 52W High

Univest, 17 Aug

Shri Venkatesh Refineries sets Sept 24 as record date for FY26 dividend

scanx.trade, 18 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Broad-Based Technical Strength Lifts Shri Venkatesh Refineries Ltd to 52-Week High of Rs 730

MarketsMojo, 15 Oct

Shri Venkatesh Refineries Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Dividend record date 23 Sept alert: Last call for investors today! Buy Arfin India, Engineers India, others to qualify

Livemint, 23 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
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

StrongGrowth · Profitability

MiddlingBusiness Quality

WeakFinancial Health · Valuation · Risk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 6 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑