TAVEXIA LIFECARE LIMITED

Consumer Defensive — Household & Personal Products · BSE

₹1.19+₹0.02 (+1.71%)

DalalBaazaar Score

40 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of TAVEXIA LIFECARE LIMITED — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Tavexia Lifecare Limited operates a trading and distribution business and is developing a vertically integrated pharmaceutical and lifecare platform serving India and international markets.

IndustryHousehold & Personal Products

SectorConsumer Defensive

Employees11

Annual revenue₹32 Cr

How does it make money?

Turns over ₹32 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 11 employees supports ₹2.93 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.93 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., DABUR INDIA LTD, ITC LTD, 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 0.5% 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 ROE27.4%

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 +1357% while net margin moved -97% 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+1357%

Margin effect-97%

DalalBaazaar Score

40/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 0.5% is weak
✗ ROE has fallen by 3.1 points over the period

Quality vs. Valuation

Company Quality

34/ 100

Weak

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

Valuation

62/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

23.8x

3Y Median

23.1x

40 monthly readings · mean 32.3x · range 6.0x–119.0x

Sector Median

38.6x

median of 4 sector peers

🟡Currently trading close to its 3y median of 23.1x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 38% below the peer median of 38.6x.

vs. its own history

Fair

23.1x median over 40 months · +3%

vs. sector peers

Cheap

38.6x median of 4 peers · -38%

vs. generic bands

Fair

15x–35x

EV/EBITDA

99.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 3.6% to 0.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 5.1% to 0.5% — often a sign of competition or overexpansion.

Red Flags

7 items require attention · 4 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 1379% over 3 years, from ₹0 Cr to ₹4 Cr.
🔴High leverageFinancial
Debt/Equity of 8.06x — earnings must service borrowings before shareholders see anything.
🔴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.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 44.5 points, from 46.0% to 1.5%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 69.1x to 5.3x.
🟡Profit is decliningFinancial
Net profit is down 62% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 152% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 38% 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 46.0% to 1.5%. 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 7.3x 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 3.6% to 0.5%. 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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 108% a year✓ 144.3% CAGR
Latest reported year was -47.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -1%✓ 1.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 7.3x
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✗ -₹18 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 0.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 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

2 good · 3 neutral · 6 weak

Market Cap

₹46 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

23.8x

Fair

Fairly valued against the generic band

P/B Ratio

0.98x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.05

Profitable

Profitable on a per-share basis

ROE

0.5%

Weak

Weak capital efficiency

ROCE

0.5%

Weak

Low return on total capital employed

Debt/Equity

8.06x

High

High leverage

Revenue Growth (YoY)

-47.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-91.5%

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

-₹18 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-58.2%

Weak

Thin margins leave little room for error

Net Margin

-2.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.39

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.22

Defensive

Steadier than the market

52W Range Position

92%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

1.2 / 1.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

53.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹4 Cr	₹5 Cr	₹32 Cr	+144.3%
EBITDA	₹1 Cr	₹2 Cr	₹4 Cr	₹0 Cr	-22.2%
EBITDA Margin	46.0%	54.3%	68.8%	1.5%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹2 Cr	₹0 Cr	-27.4%
EPS	₹0.04	₹0.05	₹0.11	₹0.01	-34.6%
ROE	3.6%	5.4%	10.4%	0.5%	—
ROCE	5.1%	7.0%	13.3%	0.5%	—
Total Debt	₹0 Cr	₹0 Cr	₹1 Cr	₹4 Cr	+145.5%
Free Cash Flow	-₹3 Cr	-₹3 Cr	-₹0 Cr	-₹18 Cr	—

🟢 Revenue has grown at 144.3% a year over 3 years.

🔴 EBITDA has shrunk at 22.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 46.0% to 1.5% over 3 years (-44.5 pts).

🔴 PAT (Net Profit) has shrunk at 27.4% a year over 3 years.

🔴 EPS has shrunk at 34.6% a year over 3 years.

🔴 ROE has fallen from 3.6% to 0.5% over 3 years (-3.1 pts).

🔴 ROCE has fallen from 5.1% to 0.5% over 3 years (-4.7 pts).

🔴 Total Debt has grown at 145.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹111 Cr

Total Liabilities

₹68 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹14 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

45.9%

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
DABUR INDIA LTD	34.7x	17.2%
ITC LTD	16.6x	27.4%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

1 mixed5 general

Tavexia Lifecare (BSE:539519) - Stock Analysis

Simply Wall Street, 13 Oct

Tavexia Lifecare Expands Into Pharmaceuticals With Strategic

Passionate In Marketing, 13 Oct

Tavexia Lifecare (BSE:539519) Stock Valuation, Peer Comparison & Price Targets

Simply Wall Street, 13 Oct

Tavexia Lifecare to acquire 60 per cent stake in Meyonex Pharmaceuticals for Rs 67.19 crore

Dalal Street Investment Journal, 12 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

TAVEXIA Stock Price and Chart — BSE:TAVEXIA

TradingView, 26 Aug

Tavexia promoter sells 2.5 lakh equity shares via open market

scanx.trade, 28 Sept

Watch Items

Revenue growth is negative (-47.0%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongValuation

WeakBusiness Quality · Financial Health · Growth · Profitability · 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. 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; ROCE stays above 8% · see Key things to watch ↑