Swasth Foodtech India Limited

Consumer Defensive — Packaged Foods · BSE

₹15.30₹0.00 (0.00%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by moderate debt load, negative free cash flow, the company is currently loss-making.

In simple words: The company is currently losing money, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:02 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Swasth Foodtech India Limited process and sells various rice bran oil in India. The company also provides fatty acid, gums, spent earth, and wax products. It sells its products to oil manufacturers and packers.

IndustryPackaged Foods

SectorConsumer Defensive

Annual revenue₹211 Cr

How does it make money?

Turns over ₹211 Cr a year. Of every ₹100 of sales, about ₹-1 reaches shareholders as profit, with ₹0 left at the operating level before interest, tax and depreciation.

EBITDA margin0.3%

Net margin-0.7%

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?Little sign of one

Returns on capital of 0.2% 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.

ROCE0.2%

ROE-6.5%

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 +111% while net margin moved -2549% 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+111%

Margin effect-2549%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 7.6 points over the period

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

30/ 100

Expensive

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.

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

P/E (Trailing)

Not meaningful

P/B

0.43x

EV/EBITDA

37.9x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 17% over 3 years.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 1.9% to 0.3% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 0.9% to -6.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 15.8% to 0.2% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 332% against revenue growth of 111% — customers are taking longer to pay.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 0.0x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹1 Cr in the latest reported year.
🔴Receivables growing faster than salesFinancial
Receivables up 332% against revenue up 111% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 2.5x to 0.0x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 17% 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 1.9% to 0.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 27.3x 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 332% against revenue up 111%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 0.9% to -6.7%. 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 21% a year✓ 28.3% CAGR
Latest reported year was 38.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -2%✓ 0.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 27.3x
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✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 0.0x
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

3 good · 3 neutral · 5 weak

Market Cap

₹9 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

0.43x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-2.37

Loss-making

Negative earnings per share — the business is losing money

ROE

-6.5%

Weak

Weak capital efficiency

ROCE

0.2%

Weak

Low return on total capital employed

Debt/Equity

0.96x

Moderate

Moderate leverage

Revenue Growth (YoY)

38.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

62.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹2 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹15.3

ROA

-0.2%

Weak

Assets generate little profit

Operating Margin

1.7%

Weak

Thin margins leave little room for error

Net Margin

-0.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.36

Comfortable

Healthy short-term liquidity

52W Range Position

13%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

16.3 / 16.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

42.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹100 Cr	₹133 Cr	₹169 Cr	₹211 Cr	+28.3%
EBITDA	₹2 Cr	₹5 Cr	₹6 Cr	₹1 Cr	-27.0%
EBITDA Margin	1.9%	3.5%	3.3%	0.3%	—
PAT (Net Profit)	₹0 Cr	₹2 Cr	₹2 Cr	-₹1 Cr	—
EPS	₹0.05	₹3.3	₹5.45	—	—
ROE	0.9%	30.9%	10.8%	-6.7%	—
ROCE	15.8%	37.9%	19.0%	0.2%	—
Total Debt	₹24 Cr	₹23 Cr	₹20 Cr	₹20 Cr	-5.9%
Free Cash Flow	-₹14 Cr	₹0 Cr	-₹5 Cr	-₹1 Cr	—

🟢 Revenue has grown at 28.3% a year over 3 years.

🔴 EBITDA has shrunk at 27.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 1.9% to 0.3% over 3 years (-1.5 pts).

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹1 Cr.

🔴 ROE has fallen from 0.9% to -6.7% over 3 years (-7.6 pts).

🔴 ROCE has fallen from 15.8% to 0.2% over 3 years (-15.6 pts).

🟢 Total Debt has shrunk at 5.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹51 Cr

Total Liabilities

₹30 Cr

Total Debt

₹20 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.9%

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

1 mixed5 general

Swasth Foodtech India Ltd. Share Price Live Today

CNBC TV18, 15 Oct

Swasth Foodtech India Ltd Peer Comparison – Compare with Others

Value Research, 29 Aug

Swasth Foodtech India Limited Share Price

Upstox, 05 May

Compare with J.R.FOODS

Equitymaster, 26 Sept

Swasth Foodtech approves FY26 audited results

scanx.trade, 13 JunResults

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

SWASTH Stock Price and Chart — BSE:SWASTH

TradingView, 28 Feb

Watch Items

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

DalalBaazaar Thesis

🔴Business QualityWeak4.7/20

🟡Financial HealthAdequate10.1/20

🟢GrowthStrong18.4/20

🔴ProfitabilityWeak2.5/15

🟡ValuationFair7.1/15

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

This thesis breaks if

✓Revenue growth stays above 21% a year28.3% CAGR
✓EBITDA margin holds above -2%0.3%
✗Debt / EBITDA falls below 3x27.3x
✗Free cash flow remains positive-₹1 Cr
✗Interest cover stays above 3x0.0x