Driven by short-term liabilities exceed short-term assets, the company is currently loss-making, micro-cap size, which brings thin liquidity.
In simple words: The company is currently losing money, though profits are falling even as sales grow. Short-term liquidity is the main factor to watch.
Decision support, not a buy or sell call.
As of 18 Oct 2026, 6:07 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.
The 60-second version of Shri Vasuprada Plantations Limited — what it does, how it earns, and who it competes with, before any of the numbers below.
What does this company do?
Shri Vasuprada Plantations Limited, together with its subsidiaries, manufactures and cultivates tea, coffee, and rubber products in India and internationally. It operates through Tea, Coffee, and Rubber segments.
IndustryFarm Products
SectorConsumer Defensive
Employees2,818
Annual revenue₹139 Cr
How does it make money?
Turns over ₹139 Cr a year. Of every ₹100 of sales, about ₹-5 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 2,818 employees supports ₹4.9 lakh of revenue a year, the signature of a people-led business.
EBITDA margin3.1%
Net margin-5.1%
Revenue / employee₹4.9 lakh
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.
HINDUSTAN UNILEVER LTD.P/E 42.5x · ROE 21.5%
ITC LTDP/E 16.6x · ROE 27.4%
NESTLE INDIA LIMITEDP/E 59.8x · ROE 79.9%
BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%
What is its competitive advantage?Little sign of one
Returns on capital of -1.0% 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-1.0%
ROE-6.0%
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 +25% while net margin moved -47% 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+25%
Margin effect-47%
DalalBaazaar Score
36/ 100
Weak
Weighted across six categories. Every point is explained below.
✗ Return on equity is negative
Quality vs. Valuation
Company Quality
33/ 100
Weak
How good the business is, ignoring the share price entirely.
vs
Valuation
30/ 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
N/A
No P/E — the company is lossmaking
P/E (Trailing)
Not meaningful
P/B
0.69x
EV/EBITDA
33.4x
PEG
—
Dividend Yield
None
What's Good / What's Bad
🟢 What's Going Well2
Margins are improving
EBITDA margin is up from -6.0% to 3.1% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
🔴 What Needs Attention1
Short-term liquidity is tight
Current ratio of 0.69 — near-term obligations exceed near-term assets.
Red Flags
4 items require attention · 2 high · 2 watch
🔴Thin interest coverageFinancial
Operating profit covers interest only -0.3x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹7 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 2.2x to -0.3x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.69 — 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 -6.0% to 3.1%. 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 14.3x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Growth barely outpaces inflation
Revenue compounding at 7.6% 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.
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 1%✓ 3.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 14.3x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ -0.3x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 6% a year✓ 7.6% CAGR
Latest reported year was 16.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.
Investment Checklist
5 / 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
✓ 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
Price history
Quick Metrics
4 good · 2 neutral · 5 weak
Market Cap
₹82 Cr
Micro Cap
Smaller company — thin liquidity and deep drawdowns are normal here
P/E (Trailing)
Not meaningful
Loss-making
Earnings are negative, so a P/E multiple can't be read here
P/B Ratio
0.69x
Reasonable
Reasonable against the company's book value
EPS (TTM)
₹-4.8
Loss-making
Negative earnings per share — the business is losing money
ROE
-6.0%
Weak
Weak capital efficiency
ROCE
-1.0%
Weak
Low return on total capital employed
Debt/Equity
0.51x
Low
Conservative leverage
Revenue Growth (YoY)
16.3%
Healthy
Healthy top-line growth
Profit Growth (YoY)
-216.8%
Falling
Profits are shrinking
Dividend Yield
None
None
No dividend yield reported — usually means no payout, but verify if one was recently initiated
Free Cash Flow
₹3 Cr
Cash generative
Generates cash even after funding its capex
More Metrics
CMP
₹99.25
Operating Margin
-1.5%
Weak
Thin margins leave little room for error
Net Margin
-2.7%
Weak
Very little revenue reaches the bottom line
Current Ratio
0.69
Tight
Tight short-term liquidity
Beta (vs Nifty)
0.34
Defensive
Steadier than the market
52W Range Position
37%
Mid-range
Mid-range
Technical Snapshot
RSI (14)
47.3
Neutral momentum
Financial Trend (4-Year)
Metric
FY23
FY24
FY25
FY26
3Y CAGR
Revenue
₹111 Cr
₹106 Cr
₹128 Cr
₹139 Cr
+7.6%
EBITDA
-₹7 Cr
-₹5 Cr
₹8 Cr
₹4 Cr
—
EBITDA Margin
-6.0%
-5.1%
5.9%
3.1%
—
PAT (Net Profit)
-₹11 Cr
-₹7 Cr
₹6 Cr
-₹7 Cr
—
EPS
₹-13.03
₹-7.95
₹7.36
₹-8.59
—
ROE
-8.5%
-5.5%
4.8%
-6.0%
—
ROCE
-2.3%
-1.1%
7.5%
-1.0%
—
Total Debt
₹55 Cr
₹59 Cr
₹59 Cr
₹61 Cr
+3.7%
Free Cash Flow
-₹9 Cr
-₹15 Cr
-₹1 Cr
₹3 Cr
—
🟢 Revenue has grown at 7.6% a year over 3 years.
🟢 EBITDA has turned positive, from -₹7 Cr to ₹4 Cr.
🟢 EBITDA Margin has risen from -6.0% to 3.1% over 3 years (+9.0 pts).
🟢 ROE has risen from -8.5% to -6.0% over 3 years (+2.6 pts).
🟢 ROCE has risen from -2.3% to -1.0% over 3 years (+1.4 pts).
🔴 Total Debt has grown at 3.7% a year over 3 years.
🟢 Free Cash Flow has turned positive, from -₹9 Cr to ₹3 Cr.
🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.
Watch Items
Cross-check against the company's latest quarterly filing / investor presentation before acting.
DalalBaazaar Thesis
🔴Business QualityWeak6.2/20
🟡Financial HealthAdequate9.8/20
🔴GrowthWeak7.6/20
🔴ProfitabilityWeak1.3/15
🟡ValuationFair7.1/15
🔴RiskHigh4.4/10
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. 2 high-severity red flags sit above this conclusion and should be read first.
