1. 📊 At a Glance
Euro India Fresh Foods Ltd (EIFFL) is an FMCG company best known for chips, namkeen, and beverages. While sales growth has been modest, net profit exploded in FY25, triggering a sharp stock rally. But with a 110x P/E and low ROE, is this snack getting overpriced?
2. 🧢 Introduction with Hook
Remember those ₹5 chips packets with 90% air and 10% hope?
Well, one company got rich selling them.
Euro India Fresh Foods started as a local snack brand and now boasts a ₹600 Cr market cap. After being ignored for years, the stock’s 76% rally in the past year made everyone ask: Is this the next Bikaji or just bhujia bubble?
3. ❓ Business Model (WTF Do They Even Do?)
- Product Categories:
- Potato chips, namkeen, extruded snacks
- Fruit drinks, carbonated soft drinks
- Certifications: ISO 22000:2005, FSSAI approved, 100% veg, no MSG
- USP: Targets Tier 2/3 markets with low price-point, mass-consumption products
- Distribution: Gujarat-heavy footprint with pan-India ambitions
Think of it as the cousin of Balaji Wafers + Paper Boat on a budget.
4. 📈 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Sales (Cr) | 98 | 116 | 143 | 111 | 144 |
| Net Profit (Cr) | 1 | 1 | 1 | 2 | 6 |
| OPM % | 7% | 6% | 5% | 8% | 9% |
| ROE % | 0.5% | 0.6% | 0.5% | 2% | 8.05% |
- 5Y Profit CAGR: 74% (low base effect)
- 5Y Sales CAGR: 9.1% – weak
5. 💲 Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹248
- P/E: 110x
- Book Value: ₹29.2
- P/B: 8.52x
- Market Cap: ₹616 Cr
🪫 Fair Value Range (EduEstimate):
- Based on FY25 PAT of ₹6 Cr → sustainable EPS ~₹2.26
- Fair P/E: 25–35x
- FV Range: ₹55 – ₹80/share (₹135–190 Cr Mcap)
Currently trading 3x above fair range. That’s not potato pricing, that’s popcorn inflation.
6. 🚨 What’s Cooking – News, Triggers, Drama
- Q4FY25 profit up 1820% YoY – yes, you read that right
- No dividend yet; reinvesting?
- Resignation of CoSec in June 2025
- Trading volume rising but no institutional investors in sight
7. 🏦 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Borrowings (Cr) | 39 | 39 | 42 |
| Reserves (Cr) | 40 | 42 | 48 |
| Debt/Equity | ~0.8x |
- Moderate debt, manageable
- No massive capex in pipeline
8. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO (Cr) | Capex | FCF (Est) |
|---|---|---|---|
| FY24 | 10 | -4 | ~6 Cr |
| FY25 | 9 | -2 | ~7 Cr |
📈 Company has improved operating cash flow – positive sign for small FMCG
9. ⚖️ Ratios – Sexy or Stressy?
- ROE: 8.05% – improving but still meh
- ROCE: 9.9% – lowest in the packaged food peer set
- OPM: 14.15% in Q4 – record high
- Inventory Days: 274 (was 339) – efficiency improving
- CCC: 288 days – high
- D/E: 0.8x
Not stressy, but definitely not FMCG royalty yet.
10. 📉 P&L Breakdown – Show Me the Money
- FY25 Revenue: ₹144 Cr
- Net Profit: ₹6 Cr
- EPS: ₹2.26
📊 Quarterly profit jump from ₹0.78 Cr → ₹2.58 Cr
🚀 Growth is here, but needs consistency
11. 📈 Peer Comparison – Who Else in the Game?
| Company | ROE % | P/E | OPM % | Mcap (Cr) |
|---|---|---|---|---|
| Nestle India | 83.0 | 75x | 23.6 | 2.3L Cr |
| Britannia | 52.9 | 63x | 17.7 | 1.3L Cr |
| Bikaji | 14.9 | 95x | 12.5 | 18,553 |
| Gopal Snacks | 13.6 | 81x | 7.1 | 4,419 |
| Euro India | 8.0 | 110x | 9.3 | 616 |
🚩 Way overpriced vs peers with much stronger metrics and scale
12. 🧰 Miscellaneous – Shareholding, Promoters
- Promoter Holding: 73.5% (stable)
- Public Holding: 26.5%
- No FIIs, no DIIs
- ~1,700 shareholders
- SME-to-mainboard candidate in 2–3 years?
13. 🤯 EduInvesting Verdict™
Euro India Fresh is a classic small-cap FMCG story. Low base, high growth, and a breakout quarter. But unless it sustains margins, expands pan-India, and builds brand equity, this 110x P/E valuation is just chutney with no samosa.
FV Range: ₹55 – ₹80
Verdict: “Chips ki company, valuation ka circus.”
Tags: Euro India Fresh Foods, EIFFL, Namkeen stocks, FMCG microcap, high P/E stock, smallcap rally, snack foods India, EduInvesting
✍️ Written by Prashant | 🗓️ July 1, 2025
