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Check Before You Invest : Milkfood Ltd

BSE: 507621 NSE: ISIN: INE588G01021
  |   Sector:  FMCG   |   Industry:  Consumer Food

Snapshot

Q.1 Which industry/sub-sector does Milkfood Ltd belong to?
Milkfood Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.
Q.2 Is Milkfood Ltd a good quality company?
Milkfood Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Milkfood Ltd undervalued or overvalued?
Milkfood Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Milkfood Ltd a good buy now?
Milkfood 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 Milkfood Ltd?
Milkfood Ltd revenue growth is 2.5% for FY-2025 , which is above its 5 year CAGR of -4.1% , indicating faster growth.
Q.2 Gross Profit margin of Milkfood Ltd?
Milkfood Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.3% for FY-2025 , which is in line with its 5 year median of 3.3% , indicating stable margins.
Q.3 Operating Profit Margin of Milkfood Ltd?
Milkfood Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.28% for FY-2025 , which is above its 5 year median of 5.09% indicating increasing margins.
Q.4 Net Profit Margin of Milkfood Ltd?
Milkfood Ltd Net Profit Margin is 1.01% for FY-2025 , is below with its 5 year median of 1.1%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 3.3 3.3
Operating Profit Margin 5.28 5.09
Net Profit Margin 1.01 1.1
Q.5 Return on Asset of Milkfood Ltd?
Milkfood Ltd Return on Asset is 1.21%, which is in line with its 5 year historical median of 1.21%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Milkfood Ltd?
Milkfood Ltd Return on equity is 2.58% for FY-2025 , which is below its historical median of 2.89%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Milkfood Ltd?
Milkfood Ltd Return on capital employed is 7.05% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Milkfood Ltd?
Milkfood Ltd Cash conversion cycle is 47 days, above its historical median of 47 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.19 1.2
ROE 2.58 2.89
ROCE 7.05 7.05
Cash Conversion Cycle 47 days 47 days
Q.9 Debt to Equity ratio of Milkfood Ltd?
Milkfood Ltd Debt-to-Equity ratio is 0.64 , 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 Milkfood Ltd?
Milkfood Ltd Debt to cash flow from operations is 5.87 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Milkfood Ltd?
Promoters hold 56.03% of the Milkfood Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Milkfood Ltd vs industry peers?
Milkfood Ltd revenue CAGR is -4.08% , compared to the industry median CAGR of 6.97% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 447.8 117.4
Gross Profit 14.8 5
Operating Profit 24 7
Net Profit 5 2.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.19 1.2
ROE 2.58 7.15
ROCE 7.05 10.41
Cash Conversion Cycle (days) 46.74 51

Valuation & price assessment

Q.1 Stock return of Milkfood Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 5.4% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 5.4% -2.6% -23% -21%
Q.3 Valuation ratios of Milkfood 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 - 36.21 51.80
Price to Book 1.01 1.65 2.42
Price to Sales 0.44 0.39 1.42
EV to EBITDA 16.79 11.43 14.55

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