Swojas Foods Limited

Consumer Defensive — Farm Products · BSE

₹7.70+₹0.36 (+4.90%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, 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, 6:52 pm

Understanding the Business

Company site ↗

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

What does this company do?

Swojas Foods Limited engages in trading of agricultural and allied products in India. It provides seeds, grains, rice, maize, pulses, bajra, and wheat. The company was formerly known as Swojas Energy Foods Limited and changed its name to Swojas Foods Limited in November 2024.

IndustryFarm Products

SectorConsumer Defensive

Employees6

Annual revenue₹146 Cr

How does it make money?

Turns over ₹146 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation. Each of its 6 employees supports ₹24.36 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹24.36 Cr

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 5.5% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +81331% while net margin moved -85% 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+81331%

Margin effect-85%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.51 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ 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

56/ 100

Average

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

Valuation

76/ 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

33.5x

3Y Median

1372.0x

40 monthly readings · mean 1689.4x · range 7.7x–5832.3x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 98% below its 3y median of 1372.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 23% below the peer median of 43.3x.

vs. its own history

Cheap

1372.0x median over 40 months · -98%

vs. sector peers

Cheap

43.3x median of 4 peers · -23%

vs. generic bands

Fair

15x–35x

EV/EBITDA

22.6x

PEG

0.08

What's Good / What's Bad

🟢 What's Going Well3

Return on equity is rising
ROE has improved from 0.2% to 3.2%.
Return on capital is rising
ROCE has improved from 0.3% to 5.5%.
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

3 items require attention · 1 high · 2 watch

🔴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.
🟡Margins are compressingFinancial
EBITDA margin is down 4.3 points over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 25% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 98% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 23% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Margins are being competed away
EBITDA margin has fallen from 5.5% to 1.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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

1Revenue growth stays above 625% a year✓ 833.8% CAGR
Latest reported year was 65.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -1%✓ 1.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹19 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 5.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 1372.0x✓ 33.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ 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 · 4 neutral · 4 weak

Market Cap

₹37 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

33.5x

Fair

Fairly valued against the generic band

P/B Ratio

1.08x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.23

Profitable

Profitable on a per-share basis

ROE

5.2%

Weak

Weak capital efficiency

ROCE

5.5%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

65.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-68.9%

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

-₹20 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

5.0%

Average

Average asset productivity

Operating Margin

0.1%

Weak

Thin margins leave little room for error

Net Margin

0.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

42.44

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.51

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

7.2 / 7.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

56.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹0 Cr	₹72 Cr	₹146 Cr	+833.8%
EBITDA	₹0 Cr	₹0 Cr	₹4 Cr	₹2 Cr	+450.6%
EBITDA Margin	5.5%	17.0%	5.4%	1.1%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹3 Cr	₹1 Cr	+398.0%
EPS	₹0	₹0.01	₹0.92	₹0.28	+393.8%
ROE	0.2%	1.2%	44.6%	3.2%	—
ROCE	0.3%	1.7%	53.9%	5.5%	—
Free Cash Flow	₹0 Cr	-₹0 Cr	-₹4 Cr	-₹19 Cr	—

🟢 Revenue has grown at 833.8% a year over 3 years.

🟢 EBITDA has grown at 450.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 5.5% to 1.1% over 3 years (-4.3 pts).

🟢 PAT (Net Profit) has grown at 398.0% a year over 3 years.

🟢 EPS has grown at 393.8% a year over 3 years.

🟢 ROE has risen from 0.2% to 3.2% over 3 years (+3.0 pts).

🟢 ROCE has risen from 0.3% to 5.5% over 3 years (+5.2 pts).

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹19 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹28 Cr

Total Liabilities

₹1 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹19 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

68.5%

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

6 general

Swojas Energy Foods Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 29 Sept

Swojas Foods allots 16 lakh equity shares on conversion of warrants

Business Standard, 24 Aug

Onelife Capital acquires 16 lakh Swojas Foods shares, disposes warrants

scanx.trade, 26 Aug

Swojas Energy Foods Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Swojas Foods AGM seeks ₹30 crore borrowing power approval

scanx.trade, 11 Aug

Swojas Energy Foods Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Watch Items

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.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingGrowth · Profitability

WeakBusiness Quality · Risk

Points for each in the Score ↑

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. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑