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Check Before You Invest : Lotus Chocolate Company Ltd

BSE: 523475 NSE: ISIN: INE026D01011
  |   Sector:  FMCG   |   Industry:  Consumer Food

Snapshot

Q.1 Which industry/sub-sector does Lotus Chocolate Company Ltd belong to?
Lotus Chocolate Company Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.
Q.2 Is Lotus Chocolate Company Ltd a good quality company?
Lotus Chocolate Company Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Lotus Chocolate Company Ltd undervalued or overvalued?
Lotus Chocolate Company Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Lotus Chocolate Company Ltd a good buy now?
Lotus Chocolate Company 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 Lotus Chocolate Company Ltd?
Lotus Chocolate Company Ltd revenue growth is 186.8% for FY-2025 , which is above its 5 year CAGR of 52.4% , indicating faster growth.
Q.2 Gross Profit margin of Lotus Chocolate Company Ltd?
Lotus Chocolate Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.9% for FY-2025 , which is in line with its 5 year median of 3.9% , indicating stable margins.
Q.3 Operating Profit Margin of Lotus Chocolate Company Ltd?
Lotus Chocolate Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.43% for FY-2025 , which is above its 5 year median of 5% indicating increasing margins.
Q.4 Net Profit Margin of Lotus Chocolate Company Ltd?
Lotus Chocolate Company Ltd Net Profit Margin is 3% for FY-2025 , is in line with with its 5 year median of 3%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 3.9 3.9
Operating Profit Margin 5.43 5
Net Profit Margin 3 3
Q.5 Return on Asset of Lotus Chocolate Company Ltd?
Lotus Chocolate Company Ltd Return on Asset is 10.13%, which is in line with its 5 year historical median of 10.13%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Lotus Chocolate Company Ltd?
Lotus Chocolate Company Ltd Return on equity is 249.97% for FY-2025 , which is above its historical median of 0%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Lotus Chocolate Company Ltd?
Lotus Chocolate Company Ltd Return on capital employed is 23.6% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Lotus Chocolate Company Ltd?
Lotus Chocolate Company Ltd Cash conversion cycle is 51 days, below its historical median of 57 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 3.78 3.5
ROE 249.97 -
ROCE 23.6 11.6
Cash Conversion Cycle 51 days 57 days
Q.9 Debt to Equity ratio of Lotus Chocolate Company Ltd?
Lotus Chocolate Company Ltd Debt-to-Equity ratio is 2.49 , which is above with the industry average of 0.49 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Lotus Chocolate Company Ltd?
Lotus Chocolate Company Ltd Debt to cash flow from operations is -1.14 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Lotus Chocolate Company Ltd?
Promoters hold 72.07% of the Lotus Chocolate Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Lotus Chocolate Company Ltd vs industry peers?
Lotus Chocolate Company Ltd revenue CAGR is 52.36% , compared to the industry median CAGR of 6.97% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 573.8 117.4
Gross Profit 22.4 5
Operating Profit 31 7
Net Profit 17 2.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 3.78 1.2
ROE 249.97 7.15
ROCE 23.6 10.41
Cash Conversion Cycle (days) 50.8 51

Valuation & price assessment

Q.1 Stock return of Lotus Chocolate Company Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 31.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 31.2% 119% 59.7% -31%
Q.3 Valuation ratios of Lotus Chocolate Company Ltd vs historical?
The current P/E is higher 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 9616.8 40.23 51.80
Price to Book 16.28 0.00 2.42
Price to Sales 1.68 0.53 1.42
EV to EBITDA 49.01 28.12 14.55

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