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Check Before You Invest : Neopolitan Pizza and Foods Ltd

BSE: 544269 NSE: NEO ISIN: INE471R01019
  |   Sector:  Travel & Hospitality   |   Industry:  Restaurants

Snapshot

Q.1 Which industry/sub-sector does Neopolitan Pizza and Foods Ltd belong to?
Neopolitan Pizza and Foods Ltd belongs to the Travel & Hospitality sector, operating specifically within the Restaurants segment.
Q.2 Is Neopolitan Pizza and Foods Ltd a good quality company?
Neopolitan Pizza and Foods Ltd is a quality company, based on a 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 Neopolitan Pizza and Foods Ltd undervalued or overvalued?
Neopolitan Pizza and Foods Ltd appears Somewhat 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 34.64 -
Price to Book 0.5 -
Price to Sales 0.28 -
EV to EBITDA 11.53 -
Q.4 Is Neopolitan Pizza and Foods Ltd a good buy now?
Neopolitan Pizza and Foods 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 Neopolitan Pizza and Foods Ltd?
Neopolitan Pizza and Foods Ltd revenue growth is 16.3% for FY-2025, which is below its 5-year CAGR of 110.43%, indicating slower growth.

Q.2 Gross Profit margin of Neopolitan Pizza and Foods Ltd?
Neopolitan Pizza and Foods Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.9% for FY-2025, which is below its 5-year median of 4.7%, indicating decreasing margins.

Q.3 Operating Profit Margin of Neopolitan Pizza and Foods Ltd?
Neopolitan Pizza and Foods Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.73% for FY-2025, which is below its 5-year median of 6.74% indicating decreasing margins.

Q.4 Net Profit Margin of Neopolitan Pizza and Foods Ltd?
Neopolitan Pizza and Foods Ltd Net Profit Margin is 0.79% for FY-2025, is below its 5-year median of 1.73%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 1.9 4.7
Operating Profit Margin (%) 1.73 6.74
Net Profit Margin (%) 0.79 1.73

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Neopolitan Pizza and Foods Ltd?
Neopolitan Pizza and Foods Ltd Return on Asset is 1.39%, which is below its 5-year historical median of 1.76%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Neopolitan Pizza and Foods Ltd?
Neopolitan Pizza and Foods Ltd Return on capital employed is 3.13% for FY-2025, which is below its 5-year historical median of 8.22%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Neopolitan Pizza and Foods Ltd?
Neopolitan Pizza and Foods Ltd Return on equity is 1.84% for FY-2025, which is below its 5-year historical median of 10.67%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Neopolitan Pizza and Foods Ltd?
Neopolitan Pizza and Foods Ltd Cash conversion cycle is 95 days, above its 5-year historical median of 90 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.75 1.37
ROE (%) 1.84 10.67
ROCE (%) 3.13 8.22
Cash Conversion Cycle 95 days 90 days

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

Q.9 Debt to Equity ratio of Neopolitan Pizza and Foods Ltd?
Neopolitan Pizza and Foods Ltd Debt-to-Equity ratio is 0.02, which is lower the industry average of 0.05, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Neopolitan Pizza and Foods Ltd?
Neopolitan Pizza and Foods Ltd Debt to cash flow from operations is -0.1, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Neopolitan Pizza and Foods Ltd?

Q.1 Promoter shareholding and pledge status of Neopolitan Pizza and Foods Ltd?
Promoters hold 47.03% of the Neopolitan Pizza and Foods Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Neopolitan Pizza and Foods Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Neopolitan Pizza and Foods Ltd vs industry peers?
Neopolitan Pizza and Foods Ltd revenue CAGR is 110.43%, compared to the industry median CAGR of 9.99%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 16.3 10
Gross Profit Growth (%) -69.6 17.8
Operating Profit Growth (%) -73.3 8.4
Net Profit Growth (%) -81 33.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.75 0.85
ROE (%) 1.84 2.11
ROCE (%) 3.13 8.22
Cash Conversion Cycle (days) 95.32 -26

Valuation & price assessment

Q.1 Stock return of Neopolitan Pizza and Foods Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -40.9% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -40.9%
Q.2 Valuation ratios of Neopolitan Pizza and Foods Ltd vs historical?
The current P/E ratio of 34.64 is higher than its historical median of , indicating that the stock is trading above 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 34.64 - 35.75
Price to Book 0.5 - 3.09
Price to Sales 0.28 - 2.49
EV to EBITDA 11.53 - 15.61

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