Check Before You Invest : Saboo Sodium Chloro Ltd

Snapshot

Q.1 Which industry/sub-sector does Saboo Sodium Chloro Ltd belong to?

Saboo Sodium Chloro Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.

Q.2 Is Saboo Sodium Chloro Ltd a good quality company?

Saboo Sodium Chloro Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Saboo Sodium Chloro Ltd undervalued or overvalued?

Saboo Sodium Chloro Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Saboo Sodium Chloro Ltd a good buy now?

Saboo Sodium Chloro 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 Saboo Sodium Chloro Ltd?

Saboo Sodium Chloro Ltd revenue growth is 6.2% for FY-2025, which is below its 5-year CAGR of 14.23%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Saboo Sodium Chloro Ltd?

Saboo Sodium Chloro Ltd Return on capital employed is 3.93% for FY-2025, which is below its 5-year historical median of 4.48%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Saboo Sodium Chloro Ltd?

Saboo Sodium Chloro Ltd Return on Asset is 0.44%, which is above its 5-year historical median of 0.14%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Saboo Sodium Chloro Ltd?

Saboo Sodium Chloro Ltd Return on equity is 0.67% for FY-2025, which is above its 5-year historical median of 0.23%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Saboo Sodium Chloro Ltd?

Saboo Sodium Chloro Ltd Cash conversion cycle is 197 days, above its 5-year historical median of 186 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	0.77	0.77
ROE	0.67	0.23
ROCE	3.93	4.48
Cash Conversion Cycle	197 days	186 days

Q.6 Gross Profit margin of Saboo Sodium Chloro Ltd?

Saboo Sodium Chloro Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.6% for FY-2025, which is in line with its 5-year median of 3.6%, indicating stable margins.

Q.7 Operating Profit Margin of Saboo Sodium Chloro Ltd?

Saboo Sodium Chloro Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.73% for FY-2025, which is above its 5-year median of 6.86% indicating increasing margins.

Q.8 Net Profit Margin of Saboo Sodium Chloro Ltd?

Saboo Sodium Chloro Ltd Net Profit Margin is 0.57% for FY-2025, is above with its 5-year median of 0.18%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	3.6	3.6
Operating Profit Margin	7.73	6.86
Net Profit Margin	0.57	0.18

Q.9 Debt to Equity ratio of Saboo Sodium Chloro Ltd?

Saboo Sodium Chloro Ltd Debt-to-Equity ratio is 0.47, which is lower with the industry average of 0.59, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Saboo Sodium Chloro Ltd?

Saboo Sodium Chloro Ltd Debt to cash flow from operations is -1.75, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Saboo Sodium Chloro Ltd?

Promoters hold 47.52% of the Saboo Sodium Chloro Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Saboo Sodium Chloro Ltd vs industry peers?

Saboo Sodium Chloro Ltd revenue CAGR is 14.23%, compared to the industry median CAGR of 10.95%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	6.2	11
Gross Profit Growth	-34.8	12
Operating Profit Growth	28.8	NAN
Net Profit Growth	34.8	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.77	1.33
ROE	0.67	9.91
ROCE	3.93	11.48
Cash Conversion Cycle (days)	196.63	62

Valuation & price assessment

Q.1 Stock return of Saboo Sodium Chloro Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 9% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	9%	21.2%	-9.3%	-24%

Q.3 Valuation ratios of Saboo Sodium Chloro Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 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	525.62	38.93	26.64
Price to Book	1.11	1.51	2.52
Price to Sales	0.9	1.36	1.43
EV to EBITDA	18.91	16.38	14.44

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