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Check Before You Invest : Silver Oak (India) Ltd

BSE: 531635 NSE: ISIN: INE870J01019
  |   Sector:  FMCG   |   Industry:  Breweries & Distilleries

Snapshot

Q.1 Which industry/sub-sector does Silver Oak (India) Ltd belong to?
Silver Oak (India) Ltd belongs to the FMCG sector, operating specifically within the Breweries & Distilleries segment.
Q.2 Is Silver Oak (India) Ltd a good quality company?
Silver Oak (India) 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 Silver Oak (India) Ltd undervalued or overvalued?
Silver Oak (India) 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 5-year
Historic Median
Price to Earnings - -
Price to Book -3.46 -3.96
Price to Sales - -
EV to EBITDA -68.52 -48.75
Q.4 Is Silver Oak (India) Ltd a good buy now?
Silver Oak (India) 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 Silver Oak (India) Ltd?
Silver Oak (India) Ltd revenue growth is 0% for FY-2025, which is above its 5-year CAGR of -100%, indicating faster growth.

Q.2 Operating Profit Margin of Silver Oak (India) Ltd?
Silver Oak (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0% for FY-2025, which is above its 5-year median of -836.82% indicating increasing margins.

Q.3 Net Profit Margin of Silver Oak (India) Ltd?
Silver Oak (India) Ltd Net Profit Margin is -% for FY-2025, is above its 5-year median of -788.55%, indicating increasing margins.

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Silver Oak (India) Ltd?
Silver Oak (India) Ltd Return on Asset is -54.88%, which is below its 5-year historical median of -41.94%, indicating deteriorated asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Silver Oak (India) Ltd?
Silver Oak (India) Ltd Return on capital employed is -61.66% for FY-2025, which is below its 5-year historical median of -22.57%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

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

Q.6 Debt to Equity ratio of Silver Oak (India) Ltd?
Silver Oak (India) Ltd Debt-to-Equity ratio is -1.09, which is lower the industry average of 0.29, indicating lower debt levels in the industry.

Q.7 Debt to cash flow from operations of Silver Oak (India) Ltd?
Silver Oak (India) Ltd Debt to cash flow from operations is -45.67, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Silver Oak (India) Ltd?

Q.1 Promoter shareholding and pledge status of Silver Oak (India) Ltd?
Promoters hold 64.71% of the Silver Oak (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Silver Oak (India) Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Silver Oak (India) Ltd vs industry peers?
Silver Oak (India) Ltd revenue CAGR is -100.00%, compared to the industry median CAGR of 15.31%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - 15.3
Gross Profit Growth (%) 0 12.5
Operating Profit Growth (%) 0 13.1
Net Profit Growth (%) 0 12.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) - 0.98
ROE (%) - 8.17
ROCE (%) -61.66 11.85
Cash Conversion Cycle (days) - 6

Valuation & price assessment

Q.1 Stock return of Silver Oak (India) Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 19.4% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
19.4% 36.7% 26.1% -39.7%
Q.2 Valuation ratios of Silver Oak (India) Ltd vs historical?
The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near 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 - - 35.77
Price to Book -3.46 -3.96 2.22
Price to Sales - - 1.61
EV to EBITDA -68.52 -48.75 13.44

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