At a Glance
Once among India’s biggest mango pulp processors, Foods & Inns Ltd now finds itself pulping profits to survive rising debt, falling promoter stake, and inventory days that feel like mangoes kept in cold storage since 2015. The FY25 results show profitability, but serious cash flow and ownership red flags still linger.
1. 🍿 Introduction with Hook
Remember Rasna ads from the ’90s? “I love you, Rasna!”
Well, Foods & Inns probably whispered, “I loved margins!”
Despite being in one of India’s most exotic B2B food exports (mango pulp, spray-dried powders, frozen veg), the company has gone from juicy growth to liquidity squeeze.
The share is down 23% YoY. Promoter holding? Drained from 45% in 2022 to 25% in 2025. Something’s cooking — but is it mango pickle or just a financial jam?
2. 🥭 WTF Do They Even Do? (Business Model)
Foods & Inns Ltd is a USDA & FDA-approved food processor specializing in:
- 🍑 Mango pulp (one of India’s largest processors)
- 🍅 Spray-dried fruit & vegetable powders
- 🧄 Dehydrated spices and medicinal products
- ❄️ Frozen snacks and vegetables
- 🏭 Export-focused B2B supply to global FMCG brands
In short: It’s not Nestle. It sells to Nestle.
Export-oriented, B2B, and seasonal AF. Peak mango season = peak revenue. Everything else? Filler episodes.
3. 📊 Financials Overview – Profits, Margins, Growth
Revenue and Profit (Consolidated)
| FY | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM | EPS (₹) |
|---|---|---|---|---|
| 2021 | 371 | 4 | 6% | 0.78 |
| 2022 | 632 | 15 | 8% | 3.04 |
| 2023 | 999 | 47 | 10% | 9.31 |
| 2024 | 1,020 | 37 | 12% | 6.47 |
| 2025 | 992 | 42 | 12% | 5.71 |
🧠 TL;DR: Revenue grew decently, but net profit hasn’t scaled proportionally. OPM stabilizing at 12% is good. EPS fell YoY in FY25 despite 15% mango volume growth.
4. 💸 Valuation – Is It Cheap, Meh, or Crack?
- Current Price: ₹114
- P/E (TTM): 19.9
- Book Value: ₹73.4
- P/B Ratio: 1.53
- Market Cap: ₹833 Cr
👀 Peer P/E Check:
- Nestle: 76x
- Britannia: 64x
- Bikaji: 95x
- F&IL: Just 20x
📉 Verdict: Cheap compared to FMCG giants, but for a reason — Foods & Inns lacks brand moat and pricing power. It’s B2B, seasonal, and fragile on cash flows.
5. 🔥 What’s Cooking – News, Triggers, Drama
- ✅ Received ₹25.08 Cr under PLI scheme (Q4 FY25)
- 🥭 15% growth in mango volumes
- 🏭 Planning < ₹10 Cr CAPEX in FY26 – keeping it frugal
- 🧾 Recent investor presentations focus on “global expansion” – classic smallcap buzzword
- 📉 Promoter holding fell drastically over last 3 years (more below)
In short: They’ve gone from Tetra Pak kings to treading water.
6. 🏦 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Debt | ₹440 Cr |
| Equity | ₹539 Cr (Equity + Reserves) |
| D/E Ratio | 0.82 |
| Interest Cost | ₹58 Cr |
| Interest Coverage | Barely 2x |
🔺 Debt has ballooned from ₹223 Cr in FY22 to ₹440 Cr in FY25.
🤯 FY25 net profit = ₹42 Cr vs interest outgo of ₹58 Cr. Oops.
7. 💰 Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | FCF (Post Capex) |
|---|---|---|
| FY23 | -₹73 Cr | Negative |
| FY24 | -₹22 Cr | Negative |
| FY25 | ₹15 Cr | Still meh |
Despite decent PAT, they struggle with working capital — high receivables (Debtor Days = 79) + insane inventory (272 days).
📦 They basically have mango pulp in cold storage longer than Netflix keeps shows on their homepage.
8. 📏 Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 8.94% |
| ROCE | 11.7% |
| ROA | 3.62% |
| Inventory Days | 272 |
| Cash Conversion Cycle | 207 days |
Not sexy. Just… sticky. ROE < 10% in a business that runs on thin margins and seasonal cash jams? Investors beware.
9. 📈 P&L Breakdown – Show Me the Money
| Segment | Value (₹ Cr) |
|---|---|
| Sales | 992 |
| Operating Profit | 116 |
| Net Profit | 42 |
| Interest Expense | 58 |
Translation: You make ₹42 Cr profit but pay ₹58 Cr in interest. Either get debt down or margins up — current model isn’t sustainable long-term.
10. 🧯 Peer Comparison – Who Else in the Game?
| Company | P/E | ROE | OPM | Market Cap |
|---|---|---|---|---|
| Nestle India | 77 | 83% | 23.6% | ₹2.4 Lakh Cr |
| Britannia | 64 | 53% | 17.7% | ₹1.4 Lakh Cr |
| Mrs. Bectors | 69 | 14.2% | 12.7% | ₹8,313 Cr |
| Foods & Inns | 20 | 8.9% | 11.7% | ₹833 Cr |
F&IL is a midget mango in a land of giant biscuits and dairy titans.
11. 👥 Shareholding – Promoters, FIIs, and Mango Peeps
| Holder | Mar 2022 | Mar 2025 |
|---|---|---|
| Promoters | 45.2% | 25.4% 🔻 |
| FIIs | 0.0% | 1.4% |
| DIIs | 0.0% | 1.3% |
| Public | 54.8% | 71.9% 🔺 |
👻 Promoters have offloaded almost 20% stake in 3 years. Public shareholding now dominates.
Red flag? At least yellow. Mango yellow.
12. 📉 Fair Value Range – Is There Juice Left?
Let’s crunch it.
Base Case (EPS = ₹6, P/E = 18) → ₹108
Bull Case (EPS = ₹8, P/E = 22) → ₹176
Bear Case (EPS = ₹4, P/E = 15) → ₹60
🎯 Fair Value Range = ₹95 to ₹140
(Current Price: ₹114)
Stock is fairly valued based on FY25 numbers. Upside only if:
- Debt reduces drastically
- Working capital cycle tightens
- Promoters stop ghosting the company
13. 🧠 EduInvesting Verdict™
Foods & Inns is like that vintage juice brand from the ’90s — nostalgic, still around, but squeezed on all sides.
- 📦 High inventory and receivables
- 🧾 Huge debt and low cash flow
- 🏃♂️ Promoter exit = red flag
- 🥭 Mango pulp demand still growing, but margins remain pulpy
Verdict: A pulp story, not a multibagger fairy tale. Good business, stuck in fruit coma. Monitor, don’t marry.
✍️ Written by Prashant | 📅 July 1, 2025
Tags: Foods & Inns, Mango Pulp, FMCG Stocks, B2B Exporters, Debt-Ridden Smallcap, EduInvesting Recap, Fair Value Analysis
