Swadha Nature Limited

Consumer Defensive — Farm Products · BSE

₹10.06₹0.00 (0.00%)

DalalBaazaar Score

30 / 100

🔴 Weak

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, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:50 pm

Understanding the Business

Company site ↗

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

What does this company do?

Swadha Nature Limited manufactures natural food color in India. The company was formerly known as MS Securities Limited and changed its name to Swadha Nature Limited in July 2023. The company was incorporated in 1992 and is based in Ahmedabad, India.

IndustryFarm Products

SectorConsumer Defensive

Annual revenue₹0 Cr

How does it make money?

Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹-1406 reaches shareholders as profit, with ₹-1585 left at the operating level before interest, tax and depreciation.

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?Little sign of one

Returns on capital of -20.9% 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 -88% while net margin moved -16283% 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-88%

Margin effect-16283%

DalalBaazaar Score

30/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ No meaningful P/E — the company is lossmaking

Quality vs. Valuation

Company Quality

34/ 100

Weak

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

Valuation

20/ 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 Well2

Debt is being paid down
Total debt is down 71% over 3 years.
Very low debt
Debt/Equity of 0.25x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 1.1% to -24.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 0.6% to -20.9% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -1388.0x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 1576.9 points, from -7.8% to -1584.7%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -282.1x to -1388.0x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 71% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from -7.8% to -1584.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 1.1% to -24.6%. 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.
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
3 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

1EBITDA margin holds above -1587%✓ -1584.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -1388.0x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ -20.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

1 good · 3 neutral · 7 weak

Market Cap

₹4 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

Not available

No data

Source didn't return this field

EPS (TTM)

₹-0.24

Loss-making

Negative earnings per share — the business is losing money

ROE

-24.6%

Weak

Weak capital efficiency

ROCE

-20.9%

Weak

Low return on total capital employed

Debt/Equity

0.25x

Low

Conservative leverage

Revenue Growth (YoY)

-89.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

-393.8%

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

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1326.84

Comfortable

Healthy short-term liquidity

52W Range Position

58%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

8.3 / 7.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

98.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-50.6%
EBITDA	-₹0 Cr	-₹0 Cr	-₹0 Cr	-₹0 Cr	—
EBITDA Margin	-7.8%	-139.1%	-44.2%	-1584.7%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	-₹0 Cr	-₹0 Cr	—
EPS	₹0.02	₹0.04	₹-0.06	₹-0.32	—
ROE	1.1%	2.5%	-3.8%	-24.6%	—
ROCE	0.6%	2.8%	—	-20.9%	—
Total Debt	₹0 Cr	₹1 Cr	₹0 Cr	₹0 Cr	-33.5%
Free Cash Flow	-₹0 Cr	-₹1 Cr	₹0 Cr	-₹0 Cr	—

🔴 Revenue has shrunk at 50.6% a year over 3 years.

🔴 EBITDA Margin has fallen from -7.8% to -1584.7% over 3 years (-1576.9 pts).

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 EPS has turned negative, from ₹0.02 to ₹-0.32.

🔴 ROE has fallen from 1.1% to -24.6% over 3 years (-25.6 pts).

🔴 ROCE has fallen from 0.6% to -20.9% over 3 years (-21.5 pts).

🟢 Total Debt has shrunk at 33.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1 Cr

Total Liabilities

₹0 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

58.0%

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

2 mixed4 general

Swadha Nature closes trading window ahead of Q2FY27 results

scanx.trade, 28 SeptResults

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

Swadha Nature Limited Submits 34th Annual Report with Capital Reduction Details

scanx.trade, 30 Apr

Swadha Nature Limited (531039) Company Information

Simply Wall Street, 12 Mar

Akshar Spintex reports standalone net profit of Rs 0.60 crore in the June 2026 quarter

Business Standard, 07 AugResults

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

Stocks to Watch Today: Wipro, TCS, HDFC Life, Saatvik Green Energy, IRB Infrastructure, JSW Steel, IFB...

Moneycontrol.com, 10 Apr

11 penny stocks with high mutual fund stakes. Hidden gems or risky bets?

The Economic Times, 30 Sept

Watch Items

Revenue growth is negative (-89.7%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

MiddlingFinancial Health

WeakBusiness Quality · Growth · 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. 3 high-severity red flags sit above this conclusion and should be read first.

3 of 4 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑