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Check Before You Invest : Gayatri Bio Organics Ltd

BSE: 524564 NSE: ISIN: INE052E01015
  |   Sector:  FMCG   |   Industry:  Consumer Food

Snapshot

Q.1 Which industry/sub-sector does Gayatri Bio Organics Ltd belong to?
Gayatri Bio Organics Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.
Q.2 Is Gayatri Bio Organics Ltd a good quality company?
Gayatri Bio Organics Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Gayatri Bio Organics Ltd undervalued or overvalued?
Gayatri Bio Organics Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings - -
Price to Book -2.71 -2.08
Price to Sales - -
EV to EBITDA -183.12 -166.69
Q.4 Is Gayatri Bio Organics Ltd a good buy now?
Gayatri Bio Organics Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Gayatri Bio Organics Ltd?
Gayatri Bio Organics Ltd revenue growth is 0% for FY-2025, which is in line with its 5-year CAGR of NA%, indicating stable growth.

Q.2 Gross Profit margin of Gayatri Bio Organics Ltd?
Gayatri Bio Organics Ltd Gross profit margin which is the profit after deduction of direct costs, is -47.7% for FY-2025, which is below its 5-year median of -26.5%, indicating decreasing margins.

Q.3 Operating Profit Margin of Gayatri Bio Organics Ltd?
Gayatri Bio Organics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0% for FY-2025, which is above its 5-year median of -17.96% indicating increasing margins.

Q.4 Net Profit Margin of Gayatri Bio Organics Ltd?
Gayatri Bio Organics Ltd Net Profit Margin is -% for FY-2025, is above its 5-year median of -28.03%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -47.7 -26.5
Operating Profit Margin (%) - -17.96
Net Profit Margin (%) - -28.03

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Gayatri Bio Organics Ltd?
Gayatri Bio Organics Ltd Return on Asset is -44.83%, which is below its 5-year historical median of -42.67%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Gayatri Bio Organics Ltd?
Gayatri Bio Organics Ltd Return on capital employed is -40.85% for FY-2025, which is in line with its 5-year historical median of -40.85%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

C: How much debt does the business have and is it at a sustainable level?

Q.7 Debt to Equity ratio of Gayatri Bio Organics Ltd?
Gayatri Bio Organics Ltd Debt-to-Equity ratio is -1.03, which is lower the industry average of 0.49, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Gayatri Bio Organics Ltd?
Gayatri Bio Organics Ltd Debt to cash flow from operations is -67.02, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Gayatri Bio Organics Ltd?

Q.1 Promoter shareholding and pledge status of Gayatri Bio Organics Ltd?
Promoters hold 21.59% of the Gayatri Bio Organics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Gayatri Bio Organics Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Gayatri Bio Organics Ltd vs industry peers?
Gayatri Bio Organics Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 7.03%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - 7
Gross Profit Growth (%) 0 13.3
Operating Profit Growth (%) 0 12.6
Net Profit Growth (%) 0 20.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) - 1.2
ROE (%) - 7.22
ROCE (%) -40.85 11.34
Cash Conversion Cycle (days) - 48

Valuation & price assessment

Q.1 Stock return of Gayatri Bio Organics Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 0.9% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
0.9% 9.2% 10% 70.2%
Q.2 Valuation ratios of Gayatri Bio Organics Ltd vs historical?
The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings - - 26.55
Price to Book -2.71 -2.08 2.53
Price to Sales - - 1.43
EV to EBITDA -183.12 -166.69 14.38

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