Recent Price Movement and Market Context
On 9 January 2026, Foods & Inns Ltd’s stock recorded an intraday low of Rs.66.82, representing a 2.31% decline on the day. This drop extended the stock’s losing streak to two consecutive sessions, during which it has fallen by 4.34%. The stock underperformed the FMCG sector by 2.26% today, signalling relative weakness within its industry group.
The share price is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring the prevailing bearish momentum. In contrast, the benchmark Sensex opened lower at 84,022.09 points, down 0.19%, and is trading marginally below its 50-day moving average but remains 2.41% shy of its 52-week high of 86,159.02.
Long-Term and Recent Performance Metrics
Over the past year, Foods & Inns Ltd has delivered a negative return of 38.22%, significantly underperforming the Sensex, which posted a positive 8.39% return over the same period. The stock’s 52-week high was Rs.128.79, indicating a substantial decline of nearly 48% from that peak.
Performance over longer horizons also reflects underwhelming results, with the stock lagging the BSE500 index across one-year, three-year, and three-month timeframes. This trend highlights persistent challenges in maintaining shareholder value relative to broader market benchmarks.
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Financial Health and Profitability Indicators
Foods & Inns Ltd’s financial profile reveals areas of concern that have contributed to the stock’s subdued performance. The company’s Debt to EBITDA ratio stands at 4.07 times, indicating a relatively high leverage level and a constrained ability to service debt obligations efficiently. This metric has weighed on investor sentiment and credit assessments.
Profitability metrics also reflect modest returns, with an average Return on Equity (ROE) of 8.67%. This figure suggests limited profitability generated per unit of shareholders’ funds, which may be a factor in the stock’s diminished appeal compared to peers.
Quarterly Results Highlight Declines
The company reported negative quarterly results in September 2025, following flat performance in June 2025. Net sales for the quarter stood at Rs.192.51 crore, down 22.3% compared to the previous four-quarter average. Profit before tax excluding other income (PBT less OI) was a loss of Rs.1.58 crore, a decline of 116.5% relative to the prior four-quarter average. Net profit after tax (PAT) was Rs.0.67 crore, falling 93.6% over the same period.
These figures underscore a challenging near-term earnings environment, which has contributed to the stock’s downward trajectory.
Valuation and Comparative Analysis
Despite recent setbacks, Foods & Inns Ltd maintains a very attractive valuation profile. The company’s Return on Capital Employed (ROCE) is 8.7%, and it trades at an enterprise value to capital employed ratio of 1, signalling a discount relative to its peers’ historical valuations. This valuation gap reflects market caution amid the company’s financial and operational performance.
Over the past year, while the stock price has declined by 38.22%, the company’s profits have increased by 15.9%, resulting in a price-to-earnings-to-growth (PEG) ratio of 1. This metric indicates that earnings growth has not been fully reflected in the share price.
Shareholding Pattern and Market Grade
The majority of Foods & Inns Ltd’s shares are held by non-institutional investors, which may influence liquidity and trading dynamics. The company’s MarketsMOJO score currently stands at 31.0, with a Mojo Grade of Sell, downgraded from Hold on 19 August 2025. The Market Cap Grade is 4, reflecting its micro-cap status within the FMCG sector.
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Long-Term Growth Trends
While recent quarters have been challenging, Foods & Inns Ltd has demonstrated healthy long-term growth in operating profit, which has increased at an annualised rate of 46.74%. This growth rate indicates underlying business expansion despite short-term earnings volatility.
Nevertheless, the stock’s price performance has not mirrored this operational progress, as reflected in its sustained decline and current valuation discount.
Summary of Key Metrics
To summarise, Foods & Inns Ltd’s stock has reached a 52-week low of Rs.66.82, reflecting a 38.22% decline over the past year and underperformance relative to the Sensex and FMCG sector. The company faces challenges related to leverage and profitability, with a high Debt to EBITDA ratio of 4.07 times and modest ROE of 8.67%. Quarterly results have shown declines in sales and profits, contributing to the negative market sentiment.
Despite these factors, the company maintains a strong long-term operating profit growth rate and attractive valuation metrics, including a ROCE of 8.7% and a PEG ratio of 1. The majority shareholding by non-institutional investors and a recent downgrade to a Sell grade by MarketsMOJO further contextualise the stock’s current market position.
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