White Organic Agro Limited

Consumer Defensive — Farm Products · BSE

₹3.60+₹0.06 (+1.69%)

DalalBaazaar Score

38 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by short-term liabilities exceed short-term assets, 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, 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, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

White Organic Agro Limited engages in farming, cultivation, harvesting, processing, wholesale, retail, and export of organic food products in India.

IndustryFarm Products

SectorConsumer Defensive

Employees11

Annual revenue₹13 Cr

How does it make money?

Turns over ₹13 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 11 employees supports ₹1.21 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.21 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?Little sign of one

Returns on capital of 2.5% 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 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 -92% while net margin moved +933% 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-92%

Margin effect+933%

DalalBaazaar Score

38/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 57.6% a year
✗ Profit has declined at 7.6% a year
✗ Profit fell 34.8% in the latest year

Quality vs. Valuation

Company Quality

31/ 100

Weak

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

Valuation

75/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

16.4x

3Y Median

15.7x

40 monthly readings · mean 16.3x · range 6.1x–29.4x

Sector Median

43.3x

median of 4 sector peers

🟡Currently trading close to its 3y median of 15.7x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 62% below the peer median of 43.3x.

vs. its own history

Fair

15.7x median over 40 months · +4%

vs. sector peers

Cheap

43.3x median of 4 peers · -62%

vs. generic bands

Fair

15x–35x

EV/EBITDA

7.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 1.6% to 11.7% 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

4 items require attention · 2 high · 2 watch

🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 100% against revenue up -92% — sales are being booked faster than they are collected.
🟡Profit is decliningFinancial
Net profit is down 21% over 3 years.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.98 — 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 1.6% to 11.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 62% 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?

Sales are being booked faster than collected
Receivables are up 100% against revenue up -92%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 10%✓ 11.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹4 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ 2.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 15.7x✓ 16.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 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
✗ 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

3 good · 4 neutral · 4 weak

Market Cap

₹13 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

16.4x

Fair

Fairly valued against the generic band

P/B Ratio

0.22x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.22

Profitable

Profitable on a per-share basis

ROE

1.7%

Weak

Weak capital efficiency

ROCE

2.5%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

11182.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-34.8%

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

Operating Margin

-3.6%

Weak

Thin margins leave little room for error

Net Margin

3.6%

Average

Average bottom-line conversion

Current Ratio

0.98

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.39

Defensive

Steadier than the market

52W Range Position

31%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

3.6 / 3.5

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

53.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹174 Cr	₹33 Cr	₹20 Cr	₹13 Cr	-57.6%
EBITDA	₹3 Cr	₹4 Cr	₹2 Cr	₹2 Cr	-18.4%
EBITDA Margin	1.6%	12.5%	11.9%	11.7%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹2 Cr	₹1 Cr	-7.6%
EPS	₹0.35	₹0.33	₹0.49	₹0.28	-7.2%
ROE	2.3%	2.1%	3.0%	1.7%	—
ROCE	3.9%	5.0%	4.0%	2.5%	—
Free Cash Flow	₹5 Cr	-₹4 Cr	-₹4 Cr	-₹4 Cr	—

🔴 Revenue has shrunk at 57.6% a year over 3 years.

🔴 EBITDA has shrunk at 18.4% a year over 3 years.

🟢 EBITDA Margin has risen from 1.6% to 11.7% over 3 years (+10.0 pts).

🔴 PAT (Net Profit) has shrunk at 7.6% a year over 3 years.

🔴 EPS has shrunk at 7.2% a year over 3 years.

🟡 ROE has held roughly flat at 1.7% over 3 years.

🔴 ROCE has fallen from 3.9% to 2.5% over 3 years (-1.4 pts).

🔴 Free Cash Flow has turned negative, from ₹5 Cr to -₹4 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹67 Cr

Total Liabilities

₹9 Cr

Total Debt

—

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹4 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

28.2%

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 mixed5 general

White Organic Agro Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 04 Sept

Compare WHITE ORGANIC AGRO with VINTRON INFORM

Equitymaster, 09 Oct

White Organic Agro Q1 Results: Net profit turns positive at ₹75.5 crore

scanx.trade, 16 AugResults

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

White Organic Agro reappoints Darshak Rupani as MD for 3 years

scanx.trade, 30 Sept

White Organic Retail Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 04 Sept

White Organic Agro schedules 36th AGM for September 30, 2026

scanx.trade, 29 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongValuation

MiddlingFinancial Health

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 4 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑