Tanvi Foods (India) Limited

Consumer Defensive — Packaged Foods · BSE

₹64.60+₹0.07 (+0.11%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, 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, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Tanvi Foods (India) Limited, together with its subsidiaries, engages in the manufacturing, processing, marketing, and sale of frozen food products, frozen vegetables, frozen snacks, ready-to-eat food, and other processed agricultural products in India.

IndustryPackaged Foods

SectorConsumer Defensive

Employees258

Annual revenue₹103 Cr

How does it make money?

Turns over ₹103 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 258 employees supports ₹39.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹39.8 lakh

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 6.3% 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 +26% while net margin moved +91% 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+26%

Margin effect+91%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 2.9% is weak

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

61/ 100

Fair

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

51.7x

3Y Median

230.5x

40 monthly readings · mean 220.5x · range 70.5x–407.7x

Sector Median

51.7x

median of 4 sector peers

🟢Current valuation is approximately 78% below its 3y median of 230.5x. 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 is priced broadly in line with the peer median of 51.7x.

vs. its own history

Cheap

230.5x median over 40 months · -78%

vs. sector peers

Fair

51.7x median of 4 peers · +0%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

13.5x

PEG

1.52

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 4.6% to 8.3% over 3 years.
Debt is being paid down
Total debt is down 13% over 3 years.
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

5 items require attention · 4 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.6x — little room if earnings dip.
🔴Free cash flow negative for 4 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 212% against revenue up 26% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 139% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 4.6% to 8.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 78% 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.
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 3.9x 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 212% against revenue up 26%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 7.9% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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 6%✓ 8.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 1.6x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 6% a year✓ 7.9% CAGR
Latest reported year was 36.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

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

5 good · 2 neutral · 4 weak

Market Cap

₹83 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

51.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.11x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.25

Profitable

Profitable on a per-share basis

ROE

2.9%

Weak

Weak capital efficiency

ROCE

6.3%

Weak

Low return on total capital employed

Debt/Equity

0.44x

Low

Conservative leverage

Revenue Growth (YoY)

36.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

618.7%

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

-₹11 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

2.9%

Weak

Assets generate little profit

Operating Margin

5.7%

Average

Average margins

Net Margin

1.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.88

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.30

Defensive

Steadier than the market

52W Range Position

45%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

48.3 / 48.5

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹82 Cr	₹82 Cr	₹85 Cr	₹103 Cr	+7.9%
EBITDA	₹4 Cr	₹3 Cr	₹3 Cr	₹9 Cr	+31.9%
EBITDA Margin	4.6%	4.0%	3.6%	8.3%	—
PAT (Net Profit)	₹1 Cr	₹0 Cr	₹0 Cr	₹2 Cr	+33.9%
EPS	₹1.24	₹0.39	₹0.28	—	—
ROE	2.3%	0.8%	0.5%	2.2%	—
ROCE	7.9%	4.0%	3.1%	6.3%	—
Total Debt	₹38 Cr	₹25 Cr	₹23 Cr	₹33 Cr	-4.6%
Free Cash Flow	-₹4 Cr	-₹13 Cr	-₹46 Cr	-₹3 Cr	—

🟢 Revenue has grown at 7.9% a year over 3 years.

🟢 EBITDA has grown at 31.9% a year over 3 years.

🟢 EBITDA Margin has risen from 4.6% to 8.3% over 3 years (+3.8 pts).

🟢 PAT (Net Profit) has grown at 33.9% a year over 3 years.

🟡 ROE has held roughly flat at 2.2% over 3 years.

🔴 ROCE has fallen from 7.9% to 6.3% over 3 years (-1.6 pts).

🟢 Total Debt has shrunk at 4.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹129 Cr

Total Liabilities

₹53 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.2%

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

1 positive5 general

Tanvi Foods (India) Limited Share Price

Upstox, 13 Oct

Tanvi Foods passes all six resolutions at 19th AGM

scanx.trade, 30 Sept

Tanvi Foods (India) Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Tanvi Foods (India) Ltd (BSE: TANVI) Business Overview and Financial Snapshot

Kalkine India, 10 Sept

Tanvi Foods (India) Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Tanvi Foods files FY26 annual report; consolidated profit up 496%

scanx.trade, 05 SeptResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

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

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Profitability · 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. 4 high-severity red flags sit above this conclusion and should be read first.

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