Unique Organics Limited

Consumer Defensive — Farm Products · BSE

₹84.02−₹3.22 (−3.69%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Strong business and financial position, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Unique Organics Limited manufactures and trades feed, food, and spices products in India and internationally.

IndustryFarm Products

SectorConsumer Defensive

Employees37

Annual revenue₹105 Cr

How does it make money?

Turns over ₹105 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 37 employees supports ₹2.85 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.85 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 26.6%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 19.6% against a peer median of 51.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 -42% while net margin moved +261% 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-42%

Margin effect+261%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.09 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

58/ 100

Average

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

Valuation

88/ 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

6.1x

3Y Median

11.4x

40 monthly readings · mean 10.7x · range 3.7x–19.8x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 47% below its 3y median of 11.4x. 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 86% below the peer median of 43.3x.

vs. its own history

Cheap

11.4x median over 40 months · -47%

vs. sector peers

Cheap

43.3x median of 4 peers · -86%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.1x

PEG

0.22

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 4.0% to 10.7% over 3 years.
Debt is being paid down
Total debt is down 18% over 3 years.
High return on capital employed
ROCE of 26.6% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.18x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 23.6% to 19.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 33.5% to 26.6% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 23% against revenue up -42% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 56% against revenue up -42% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹9 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.6% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 4.0% to 10.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 18% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 47% 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 86% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 23% against revenue up -42%. 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 23.6% to 19.6%. 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.
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
2 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

1EBITDA margin holds above 9%✓ 10.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹9 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 24%✓ 26.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 11.4x✓ 6.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 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

7 good · 3 neutral · 1 weak

Market Cap

₹50 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.1x

Cheap

Cheap against the generic band

P/B Ratio

1.22x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹13.74

Profitable

Profitable on a per-share basis

ROE

19.6%

Strong

Strong capital efficiency

ROCE

26.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.18x

Low

Conservative leverage

Revenue Growth (YoY)

19.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

5.6%

Modest

Slow profit growth

Dividend Yield

1.55%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹9 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

7.6%

Average

Average margins

Net Margin

7.3%

Average

Average bottom-line conversion

Current Ratio

4.01

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.09

Defensive

Steadier than the market

52W Range Position

30%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

86.1 / 88.8

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	₹181 Cr	₹202 Cr	₹149 Cr	₹105 Cr	-16.5%
EBITDA	₹7 Cr	₹10 Cr	₹14 Cr	₹11 Cr	+16.4%
EBITDA Margin	4.0%	4.7%	9.7%	10.7%	—
PAT (Net Profit)	₹4 Cr	₹6 Cr	₹11 Cr	₹8 Cr	+28.1%
EPS	₹6.43	₹10.65	₹17.71	₹13.52	+28.1%
ROE	23.6%	28.1%	31.9%	19.6%	—
ROCE	33.5%	38.0%	42.4%	26.6%	—
Total Debt	₹9 Cr	₹1 Cr	—	₹7 Cr	-6.4%
Free Cash Flow	₹3 Cr	₹11 Cr	₹14 Cr	-₹9 Cr	—

🔴 Revenue has shrunk at 16.5% a year over 3 years.

🟢 EBITDA has grown at 16.4% a year over 3 years.

🟢 EBITDA Margin has risen from 4.0% to 10.7% over 3 years (+6.8 pts).

🟢 PAT (Net Profit) has grown at 28.1% a year over 3 years.

🟢 EPS has grown at 28.1% a year over 3 years.

🔴 ROE has fallen from 23.6% to 19.6% over 3 years (-4.1 pts).

🔴 ROCE has fallen from 33.5% to 26.6% over 3 years (-6.9 pts).

🟢 Total Debt has shrunk at 6.4% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹3 Cr to -₹9 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹54 Cr

Total Liabilities

₹12 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹9 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

50.0%

Corporate Actions

Dividend Rate

₹1.3

Ex-Dividend Date

01 Sept 2026

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

1 positive1 mixed4 general

Unique Organics Q1 FY27 Results: Revenue Rs 38 Cr, PAT Rs 2 Cr and Key Highlights

Univest, 11 AugResults

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

Unique Organics closes books Sep 2-8 for 34th AGM

scanx.trade, 10 Aug

Unique Organics standalone net profit rises 6.01% in the June 2026 quarter

Business Standard, 11 AugResults

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

Unique Organics Limited Confirms Non-Applicability of Large Corporate Entity Criteria for FY26

scanx.trade, 07 Apr

NEAGI Stock Price and Chart — NSE:NEAGI

TradingView, 21 Apr

Top stocks in news: Symbiotech, EPL, Milky Mist, TBZ, Skyways, PVR Inox, Hy-Tech, Cipla, Kotak Bank

Business Today, 01 Sept

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Growth · Profitability

WeakRisk

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

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑