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Check Before You Invest : Sawaliya Food Products Ltd

BSE: 0 NSE: SAWALIYA ISIN: INE10VS01016
  |   Sector:  FMCG   |   Industry:  Consumer Food

Snapshot

Q.1 Which industry/sub-sector does Sawaliya Food Products Ltd belong to?
Sawaliya Food Products Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.
Q.2 Is Sawaliya Food Products Ltd a good quality company?
Sawaliya Food Products Ltd is a weak quality company, based on a inconsistent 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 Sawaliya Food Products Ltd undervalued or overvalued?
Sawaliya Food Products Ltd appears 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 3-year
Historic Median
Price to Earnings 40.68 43.17
Price to Book 18.53 19.65
Price to Sales 8.27 8.77
EV to EBITDA 24.65 26.05
Q.4 Is Sawaliya Food Products Ltd a good buy now?
Sawaliya Food Products 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 Sawaliya Food Products Ltd?
Sawaliya Food Products Ltd revenue growth is 46.1% for FY-2025, which is above its 3-year CAGR of 36.09%, indicating faster growth.

Q.2 Gross Profit margin of Sawaliya Food Products Ltd?
Sawaliya Food Products Ltd Gross profit margin which is the profit after deduction of direct costs, is 28.6% for FY-2025, which is above its 3-year median of 21.3%, indicating increasing margins.

Q.3 Operating Profit Margin of Sawaliya Food Products Ltd?
Sawaliya Food Products Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 35.79% for FY-2025, which is above its 3-year median of 26.17% indicating increasing margins.

Q.4 Net Profit Margin of Sawaliya Food Products Ltd?
Sawaliya Food Products Ltd Net Profit Margin is 20.32% for FY-2025, is above its 3-year median of 13.33%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 28.6 21.3
Operating Profit Margin (%) 35.79 26.17
Net Profit Margin (%) 20.32 13.33

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Sawaliya Food Products Ltd?
Sawaliya Food Products Ltd Return on Asset is 19.38%, which is above its 3-year historical median of 13.73%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Sawaliya Food Products Ltd?
Sawaliya Food Products Ltd Return on capital employed is 44.3% for FY-2025, which is above its 3-year historical median of 33.81%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Sawaliya Food Products Ltd?
Sawaliya Food Products Ltd Return on equity is 75.7% for FY-2025, which is in line with its 3-year historical median of 75.3%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Sawaliya Food Products Ltd?
Sawaliya Food Products Ltd Cash conversion cycle is 184 days, above its 3-year historical median of 125 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 0.95 0.99
ROE (%) 75.7 75.3
ROCE (%) 44.3 33.81
Cash Conversion Cycle 184 days 125 days

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

Q.9 Debt to Equity ratio of Sawaliya Food Products Ltd?
Sawaliya Food Products Ltd Debt-to-Equity ratio is 1.78, which is above the industry average of 0.49, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Sawaliya Food Products Ltd?
Sawaliya Food Products Ltd Debt to cash flow from operations is -5.22, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Sawaliya Food Products Ltd?

Q.1 Promoter shareholding and pledge status of Sawaliya Food Products Ltd?
Promoters hold 67.78% of the Sawaliya Food Products Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Sawaliya Food Products Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Sawaliya Food Products Ltd vs industry peers?
Sawaliya Food Products Ltd revenue CAGR is 36.09%, compared to the industry median CAGR of 10.94%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 46.1 10.9
Gross Profit Growth (%) 100 22.6
Operating Profit Growth (%) 100 20.3
Net Profit Growth (%) 133.3 36.8
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 0.95 1.43
ROE (%) 75.7 10.62
ROCE (%) 44.3 13.41
Cash Conversion Cycle (days) 183.59 55

Valuation & price assessment

Q.1 Stock return of Sawaliya Food Products Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Sawaliya Food Products Ltd vs historical?
The current P/E ratio of 40.68 is lower than its historical median of 43.17, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 40.68 43.17 26.80
Price to Book 18.53 19.65 2.57
Price to Sales 8.27 8.77 1.46
EV to EBITDA 24.65 26.05 14.89

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