Tapi Fruit Processing Limited

Sector n/a · NSE

₹135.00₹0.00 (0.00%)

DalalBaazaar Score

36 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by moderate debt load, short-term liabilities exceed short-term assets, negative free cash flow.

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, 6:09 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

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

How does it make money?

Turns over ₹29 Cr a year. Of every ₹100 of sales, about ₹-6 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation.

EBITDA margin5.9%

Net margin-5.9%

What is its competitive advantage?Little sign of one

Returns on capital of -6.4% 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.

ROCE-6.4%

ROE-16.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +38% while net margin moved +545% 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+38%

Margin effect+545%

DalalBaazaar Score

36/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 13.6 points over the period

Quality vs. Valuation

Company Quality

35/ 100

Weak

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

Valuation

18/ 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

No P/E available

P/E (Trailing)

—

P/B

—

EV/EBITDA

41.5x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Margins are improving
EBITDA margin is up from 2.8% to 5.9% over 3 years.

🔴 What Needs Attention6

Debt is rising
Total debt is up 2261% over 3 years — worth checking what it funded.
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 -2.4% to -16.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from -0.6% to -6.4% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 66% against revenue growth of 38% — stock may not be moving.
Short-term liquidity is tight
Current ratio of 0.82 — near-term obligations exceed near-term assets.

Red Flags

6 items require attention · 4 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 2261% over 3 years, from ₹0 Cr to ₹11 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only -1.7x — 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.
🔴The company is lossmakingFinancial
Net profit of -₹2 Cr in the latest reported year.
🟡Inventory building faster than salesFinancial
Inventory up 66% against revenue up 38% — stock may not be moving.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.82 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 2.8% to 5.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 6.8x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from -2.4% to -16.0%. 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
4 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 8% a year✓ 11.3% CAGR
Latest reported year was 41.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 5.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 6.8x
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✗ -₹4 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ -1.7x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

1 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 6 neutral · 4 weak

Market Cap

₹58 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

-16.0%

Weak

Weak capital efficiency

ROCE

-6.4%

Weak

Low return on total capital employed

Debt/Equity

1.07x

Moderate

Moderate leverage

Revenue Growth (YoY)

41.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-17.5%

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

-₹4 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹135

Gross Margin

23.8%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

-5.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.82

Adequate

Adequate, but no real cushion

Technical Snapshot

SMA 20 / SMA 50

43.5 / 47.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹21 Cr	₹22 Cr	₹20 Cr	₹29 Cr	+11.3%
EBITDA	₹1 Cr	₹1 Cr	-₹0 Cr	₹2 Cr	+41.8%
EBITDA Margin	2.8%	2.4%	-2.4%	5.9%	—
PAT (Net Profit)	-₹0 Cr	-₹0 Cr	-₹1 Cr	-₹2 Cr	—
EPS	₹-0.67	₹-0.44	₹-3.4	—	—
ROE	-2.4%	-1.5%	-11.9%	-16.0%	—
ROCE	-0.6%	-0.9%	-7.5%	-6.4%	—
Total Debt	₹0 Cr	₹2 Cr	₹7 Cr	₹11 Cr	+186.9%
Free Cash Flow	-₹2 Cr	-₹3 Cr	-₹10 Cr	-₹4 Cr	—

🟢 Revenue has grown at 11.3% a year over 3 years.

🟢 EBITDA has grown at 41.8% a year over 3 years.

🟢 EBITDA Margin has risen from 2.8% to 5.9% over 3 years (+3.0 pts).

🔴 ROE has fallen from -2.4% to -16.0% over 3 years (-13.6 pts).

🔴 ROCE has fallen from -0.6% to -6.4% over 3 years (-5.8 pts).

🔴 Total Debt has grown at 186.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹26 Cr

Total Liabilities

₹16 Cr

Total Debt

₹11 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

-₹4 Cr

Recent News

6 general

Tapi Fruit Processing Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 02 Sept

Tapi Fruit Processing Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 29 Aug

Tapi Fruit Processing (NSEI:TAPIFRUIT) - Stock Analysis

Simply Wall Street, 23 Sept

MAMAEARTH HONASA CONSUMER Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 23 Sept

Stock market update: Nifty Auto index falls 0.74% in a weak market

The Economic Times, 14 Mar

BAJAJ CONSUMER CARE Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 09 Jun

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🔴Business QualityWeak4.7/20

🔴Financial HealthStretched5.5/20

🟢GrowthStrong13.6/20

🔴ProfitabilityWeak2.5/15

🟡ValuationFair7.5/15

🔴RiskHigh2.5/10

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

This thesis breaks if

✓Revenue growth stays above 8% a year11.3% CAGR
✓EBITDA margin holds above 4%5.9%
✗Debt / EBITDA falls below 3x6.8x
✗Free cash flow remains positive-₹4 Cr
✗Interest cover stays above 3x-1.7x