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Check Before You Invest : KMG Milk Food Ltd

BSE: 519415 NSE: ISIN: INE873N01015
  |   Sector:  FMCG   |   Industry:  Consumer Food

Snapshot

Q.1 Which industry/sub-sector does KMG Milk Food Ltd belong to?
KMG Milk Food Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.
Q.2 Is KMG Milk Food Ltd a good quality company?
KMG Milk Food Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is KMG Milk Food Ltd undervalued or overvalued?
KMG Milk Food Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is KMG Milk Food Ltd a good buy now?
KMG Milk Food 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

Q.1 Revenue growth of KMG Milk Food Ltd?
KMG Milk Food Ltd revenue growth is 247.2% for FY-2025 , which is above its 5 year CAGR of 104.4% , indicating faster growth.
Q.2 Gross Profit margin of KMG Milk Food Ltd?
KMG Milk Food Ltd Gross profit margin which is the profit after deduction of direct costs, is -4.7% for FY-2025 , which is below its 5 year median of 2.7% , indicating decreasing margins.
Q.3 Operating Profit Margin of KMG Milk Food Ltd?
KMG Milk Food Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -6.27% for FY-2025 , which is in line with its 5 year median of -6.27% indicating stable margins.
Q.4 Net Profit Margin of KMG Milk Food Ltd?
KMG Milk Food Ltd Net Profit Margin is -6.74% for FY-2025 , is below with its 5 year median of 2.03%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin -4.7 2.7
Operating Profit Margin -6.27 -6.27
Net Profit Margin -6.74 2.03
Q.5 Return on Asset of KMG Milk Food Ltd?
KMG Milk Food Ltd Return on Asset is -4.41%, which is below its 5 year historical median of 1.18%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of KMG Milk Food Ltd?
KMG Milk Food Ltd Return on equity is 0% for FY-2025 , which is in line with its historical median of 0%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of KMG Milk Food Ltd?
KMG Milk Food Ltd Return on capital employed is 7.01% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of KMG Milk Food Ltd?
KMG Milk Food Ltd Cash conversion cycle is 222 days, above its historical median of 131 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.65 1.13
ROE - -
ROCE 7.01 6.08
Cash Conversion Cycle 222 days 131 days
Q.9 Debt to Equity ratio of KMG Milk Food Ltd?
KMG Milk Food Ltd Debt-to-Equity ratio is -6.47 , which is lower with the industry average of 0.49 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of KMG Milk Food Ltd?
KMG Milk Food Ltd Debt to cash flow from operations is -5.61 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of KMG Milk Food Ltd?
Promoters hold 56.77% of the KMG Milk Food Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of KMG Milk Food Ltd vs industry peers?
KMG Milk Food Ltd revenue CAGR is 104.35% , compared to the industry median CAGR of 6.97% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 6.8 117.4
Gross Profit -0.3 5
Operating Profit -0.4 7
Net Profit -0.5 2.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.65 1.2
ROE - 7.15
ROCE 7.01 10.41
Cash Conversion Cycle (days) 222.21 51

Valuation & price assessment

Q.1 Stock return of KMG Milk Food Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 7.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 7.9% 19.3% 7.5% 43%
Q.3 Valuation ratios of KMG Milk Food Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 79.51 51.80
Price to Book -27.76 -29.26 2.42
Price to Sales 3.41 1.62 1.42
EV to EBITDA 56.8 65.59 14.55

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