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Check Before You Invest : Sayaji Industries Ltd

BSE: 540728 NSE: ISIN: INE327G01032
  |   Sector:  FMCG   |   Industry:  Consumer Food

Snapshot

Q.1 Which industry/sub-sector does Sayaji Industries Ltd belong to?
Sayaji Industries Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.
Q.2 Is Sayaji Industries Ltd a good quality company?
Sayaji Industries Ltd is a average quality company, based on a somewhat consistent 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 Sayaji Industries Ltd undervalued or overvalued?
Sayaji Industries Ltd appears Fair, as its key valuation ratios are in line with 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 128.78 5.53
Price to Book 3.14 1.26
Price to Sales 0.29 0.17
EV to EBITDA 11.01 9.73
Q.4 Is Sayaji Industries Ltd a good buy now?
Sayaji Industries 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 Sayaji Industries Ltd?
Sayaji Industries Ltd revenue growth is 2.3% for FY-2025, which is below its 5-year CAGR of 9.08%, indicating slower growth.

Q.2 Gross Profit margin of Sayaji Industries Ltd?
Sayaji Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 0.5% for FY-2025, which is below its 5-year median of 2.3%, indicating decreasing margins.

Q.3 Operating Profit Margin of Sayaji Industries Ltd?
Sayaji Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -1.32% for FY-2025, which is below its 5-year median of 2% indicating decreasing margins.

Q.4 Net Profit Margin of Sayaji Industries Ltd?
Sayaji Industries Ltd Net Profit Margin is -1.2% for FY-2025, is below its 5-year median of 0.72%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 0.5 2.3
Operating Profit Margin (%) -1.32 2
Net Profit Margin (%) -1.2 0.72

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Sayaji Industries Ltd?
Sayaji Industries Ltd Return on Asset is -2.28%, which is below its 5-year historical median of 1.87%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Sayaji Industries Ltd?
Sayaji Industries Ltd Return on capital employed is 1.55% for FY-2025, which is below its 5-year historical median of 8.89%. 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 Sayaji Industries Ltd?
Sayaji Industries Ltd Return on equity is -11.72% for FY-2025, which is below its 5-year historical median of 6.38%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Sayaji Industries Ltd?
Sayaji Industries Ltd Cash conversion cycle is -9 days, below its 5-year historical median of -6 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.9 2.06
ROE (%) -11.72 6.38
ROCE (%) 1.55 8.89
Cash Conversion Cycle -9 days -6 days

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

Q.9 Debt to Equity ratio of Sayaji Industries Ltd?
Sayaji Industries Ltd Debt-to-Equity ratio is 2.26, 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 Sayaji Industries Ltd?
Sayaji Industries Ltd Debt to cash flow from operations is -5.38, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Sayaji Industries Ltd?

Q.1 Promoter shareholding and pledge status of Sayaji Industries Ltd?
Promoters hold 74.95% of the Sayaji Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Sayaji Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Sayaji Industries Ltd vs industry peers?
Sayaji Industries Ltd revenue CAGR is 9.08%, compared to the industry median CAGR of 7.03%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 2.3 7
Gross Profit Growth (%) 0 13.3
Operating Profit Growth (%) -566.7 12.6
Net Profit Growth (%) 0 20.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.9 1.2
ROE (%) -11.72 7.22
ROCE (%) 1.55 11.34
Cash Conversion Cycle (days) -8.87 48

Valuation & price assessment

Q.1 Stock return of Sayaji Industries Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 13.74% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 13.7% 44.5% 68.1%
Q.2 Valuation ratios of Sayaji Industries Ltd vs historical?
The current P/E ratio of 128.78 is higher than its historical median of 5.53, 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 128.78 5.53 26.55
Price to Book 3.14 1.26 2.53
Price to Sales 0.29 0.17 1.43
EV to EBITDA 11.01 9.73 14.38

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