Manorama Industries Ltd. (MANORAMA) AI Stock Analysis

• Market Cap: ₹81.62B
• Dividend Yield: 0.04%
• Average Volume (3M): 10.57K
• Price to Earnings (P/E): 27.6
• Beta (1Y): 1.09
• Revenue Growth: 89.51%
• EPS Growth: 188.01%
• Country: IN
• Employees: 411
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 12.00
• Shares Outstanding: 59,708,530
• 10 Day Avg. Volume: 6,486
• 30 Day Avg. Volume: 10,570
• PEG Ratio: 0.33
• Price to Book (P/B): 13.66
• Price to Sales (P/S): 8.14
• P/FCF Ratio: -70.76
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 32.95
• Revenue Forecast (FY): ₹11.77B

• Rating: 64 Neutral
• Price Target: ₹1,258.00 ▼(-5.99% Downside)
• Action: Reiterated Date: 10/28/25
• Date: Action: Reiterated 10/28/25

Manorama Industries Ltd. demonstrates strong financial performance with significant revenue and profit growth. However, the high leverage and negative cash flows are concerning. The technical indicators suggest weak momentum, and the high P/E ratio indicates overvaluation, partially offset by a decent dividend yield.

Positive Factors

Sustained Revenue Growth

Manorama's multi-year revenue ramp demonstrates durable demand and successful scaling of its specialty fats and oils business. Sustained top-line growth supports operating leverage, strengthens supplier and customer bargaining positions, and enhances long-term reinvestment capacity.

Improving Profitability Margins

Marked margin expansion indicates a shift toward higher-value formulations or better cost management. Higher gross and net margins improve the durability of earnings, supporting reinvestment and cushioning against input cost swings if the product mix remains oriented toward specialty, value-added offerings.

Diversified End-Markets & Exports

Broad end-market exposure and export orientation reduce single-market cyclicality and expand addressable demand. Serving food, personal care and pharma increases opportunities for higher-margin, regulated applications and helps stabilize revenue across economic cycles and geographic shifts.

Negative Factors

Rising Leverage

An increased debt load raises fixed financing costs and constrains financial flexibility over the medium term. Higher leverage can limit the company's ability to fund capex organically, pursue opportunistic investments, or absorb demand shocks without raising costly external capital.

Negative Free Cash Flow / Cash Conversion

Persistent negative free cash flow despite reported profits indicates weak cash conversion, likely from capex or working capital needs. This structural gap forces reliance on financing for growth, raises refinancing risk, and reduces the durability of reported earnings as a source of liquidity.

Raw Material Feedstock Exposure

Dependence on natural oil feedstocks exposes margins and production continuity to commodity cycles, seasonality, and supply disruptions. Without robust sourcing diversification or hedging, input-price volatility is a structural earnings risk that can persist across multiple quarters.

Manorama Industries Ltd. Business Overview & Revenue Model

Company Description

Manorama Industries Limited manufactures, processes, and supplies specialty fats and butters from tree-borne, and plant-based seeds and nuts in India and internationally. The company offers shea butter and fat, sal butter, sal fat, sal oil, sal stearine, sal olein, mango butter and fat, mango oil, mango stearine, kokum butter and oil, mowrah fat, and de-oiled cakes, as well as dhupa, mowrah, and phulwara butter. It also provides sal, kokum, rice bran, shea, and mango kernel meal; and organic castor, neem, karanja, safflower, moringa, and rice bran oil. In addition, the company trades in cassia tora seed, rice, wheat, sugar, maize, raw cotton, cotton linter, maize/corn, soy meal, cotton seed meal, rice bran meal, sesame, sorghum yellow and white, niger seed, medicinal herbs, and safflower products. Further, it offers value-added tailor made products to form the ingredients of cocoa butter equivalents. Its products are primarily used in chocolate and confectionery, bakery, dairy, special nutrition, food service, personal care, and other industries. Manorama Industries Limited was incorporated in 2005 and is based in Raipur, India.

How the Company Makes Money

Manorama Industries Ltd. generates revenue through multiple streams, primarily from the sale of its diverse product portfolio, which includes industrial chemicals and packaging materials. The company focuses on building long-term relationships with its clients across various sectors, enabling steady demand for its products. Additionally, MANORAMA engages in strategic partnerships and alliances with other businesses to expand its market reach and enhance its product offerings. The company may also benefit from economies of scale due to its manufacturing capabilities, which helps optimize production costs and improve profit margins.

Manorama Industries Ltd. Financial Statement Overview

Summary

Manorama Industries Ltd. shows strong revenue and profit growth with improved profitability margins. However, increased leverage and negative free cash flows pose potential risks. The company needs to address cash flow challenges to ensure sustainable growth.

Income Statement

Manorama Industries Ltd. has demonstrated strong revenue growth, with Total Revenue increasing from 2,049.99 million in 2021 to 7,708.42 million in 2025. The Gross Profit Margin has consistently improved, reflecting efficient cost management. The Net Profit Margin grew significantly from 7.1% in 2021 to 14.2% in 2025, indicating enhanced profitability. EBIT and EBITDA margins have shown improvement, highlighting better operational performance.

Balance Sheet

The company's Debt-to-Equity Ratio has increased, indicating higher leverage, which could pose a risk if not managed properly. However, the Return on Equity (ROE) has improved, showing effective use of equity to generate profits. The Equity Ratio shows a stable capital structure, with Stockholders' Equity forming a substantial part of Total Assets.

Cash Flow

Manorama Industries Ltd. has faced challenges with negative free cash flows in recent years, indicating high capital expenditure relative to cash inflows. The Operating Cash Flow to Net Income Ratio has been inconsistent, suggesting potential cash flow management issues. However, financing activities have been robust, providing liquidity to support operations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.27B	7.71B	4.56B	3.51B	2.78B	1.99B
Gross Profit	4.37B	3.73B	2.01B	1.35B	1.07B	780.84M
EBITDA	2.55B	1.86B	866.74M	617.60M	471.80M	408.08M
Net Income	1.43B	1.10B	401.09M	297.75M	241.45M	145.83M
Balance Sheet
Total Assets	0.00	9.83B	7.37B	4.24B	3.96B	2.54B
Cash, Cash Equivalents and Short-Term Investments	983.46M	983.46M	870.76M	582.65M	491.93M	4.00M
Total Debt	0.00	4.82B	3.46B	1.10B	1.08B	853.55M
Total Liabilities	-4.60B	5.24B	4.00B	1.26B	1.28B	1.09B
Stockholders Equity	4.60B	4.60B	3.37B	2.98B	2.68B	1.46B
Cash Flow
Free Cash Flow	0.00	-887.21M	-1.93B	79.71M	-930.32M	290.53M
Operating Cash Flow	0.00	-568.97M	-1.53B	592.85M	-333.59M	334.95M
Investing Cash Flow	0.00	-336.36M	-620.88M	-994.71M	-345.41M	108.78M
Financing Cash Flow	0.00	927.69M	2.14B	-71.24M	1.17B	-445.72M

Manorama Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1338.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MANORAMA, the sentiment is Neutral. The current price of 1338.15 is below the 20-day moving average (MA) of 1420.11, below the 50-day MA of 1342.09, and below the 200-day MA of 1392.18, indicating a neutral trend. The MACD of 14.01 indicates Positive momentum. The RSI at 46.78 is Neutral, neither overbought nor oversold. The STOCH value of 22.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:MANORAMA.

Manorama Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOKULAGRO	78 Outperform	₹46.83B	17.02	―	―	34.34%	45.32%
GAEL	71 Outperform	₹63.76B	23.97	―	0.20%	6.42%	-39.00%
GOODLUCK	69 Neutral	₹36.85B	20.71	―	0.38%	9.57%	3.24%
BECTORFOOD	66 Neutral	₹60.00B	46.45	―	0.45%	10.82%	-8.21%
MANORAMA	64 Neutral	₹81.62B	27.59	―	0.04%	89.51%	188.01%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GLOSTERLTD	48 Neutral	₹6.00B	-241.19	―	6.20%	86.75%	―