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Check Before You Invest : Goyal Salt Ltd

BSE: 0 NSE: GOYALSALT ISIN: INE0QFE01017
  |   Sector:  FMCG   |   Industry:  Consumer Food

Snapshot

Q.1 Which industry/sub-sector does Goyal Salt Ltd belong to?
Goyal Salt Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.
Q.2 Is Goyal Salt Ltd a good quality company?
Goyal Salt 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 Goyal Salt Ltd undervalued or overvalued?
Goyal Salt Ltd appears Undervalued, as its key valuation ratios are lower 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 17.49 34.65
Price to Book 3.65 7.59
Price to Sales 0.99 2.59
EV to EBITDA 8.98 24.19
Q.4 Is Goyal Salt Ltd a good buy now?
Goyal Salt Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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.

Q.1 Gross Profit margin of Goyal Salt Ltd?
Goyal Salt Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.5% for FY-2025, which is above its 5-year median of 4.9%, indicating increasing margins.

Q.2 Operating Profit Margin of Goyal Salt Ltd?
Goyal Salt Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.19% for FY-2025, which is above its 5-year median of 5.73% indicating increasing margins.

Q.3 Net Profit Margin of Goyal Salt Ltd?
Goyal Salt Ltd Net Profit Margin is 10.19% for FY-2025, is above its 5-year median of 3.01%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 14.5 4.9
Operating Profit Margin (%) 9.19 5.73
Net Profit Margin (%) 10.19 3.01

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Goyal Salt Ltd?
Goyal Salt Ltd Return on Asset is 19.17%, which is above its 5-year historical median of 12.34%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Goyal Salt Ltd?
Goyal Salt Ltd Return on capital employed is 28.98% for FY-2025, which is above its 5-year historical median of 24.8%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Goyal Salt Ltd?
Goyal Salt Ltd Return on equity is 27.44% for FY-2025, which is above its 5-year historical median of 25.36%, indicating the business is making better use of its shareholders capital.

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

Q.7 Debt to Equity ratio of Goyal Salt Ltd?
Goyal Salt Ltd Debt-to-Equity ratio is 0.39, 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 Goyal Salt Ltd?
Goyal Salt Ltd Debt to cash flow from operations is 1.74, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Goyal Salt Ltd?

Q.1 Promoter shareholding and pledge status of Goyal Salt Ltd?
Promoters hold 72.61% of the Goyal Salt Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Goyal Salt Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Goyal Salt Ltd vs industry peers?
Goyal Salt 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 (%) 46.2 13.3
Operating Profit Growth (%) 71.4 12.6
Net Profit Growth (%) 44.4 20.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.88 1.2
ROE (%) 27.44 7.22
ROCE (%) 28.98 11.34
Cash Conversion Cycle (days) 66.41 48

Valuation & price assessment

Q.1 Stock return of Goyal Salt Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -36.25% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -36.3%
Q.2 Valuation ratios of Goyal Salt Ltd vs historical?
The current P/E ratio of 17.49 is lower than its historical median of 34.65, indicating that the stock is trading below 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 17.49 34.65 26.55
Price to Book 3.65 7.59 2.53
Price to Sales 0.99 2.59 1.43
EV to EBITDA 8.98 24.19 14.38

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