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Check Before You Invest : Sinnar Bidi Udyog Ltd

BSE: 509887 NSE: ISIN: INE896E01023
  |   Sector:  FMCG   |   Industry:  Cigarettes/Tobacco

Snapshot

Q.1 Which industry/sub-sector does Sinnar Bidi Udyog Ltd belong to?
Sinnar Bidi Udyog Ltd belongs to the FMCG sector, operating specifically within the Cigarettes/Tobacco segment.
Q.2 Is Sinnar Bidi Udyog Ltd a good quality company?
Sinnar Bidi Udyog 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 Sinnar Bidi Udyog Ltd undervalued or overvalued?
Sinnar Bidi Udyog 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 161.42 37.37
Price to Book 6.87 4.30
Price to Sales 6.7 3.89
EV to EBITDA 148.78 31.52
Q.4 Is Sinnar Bidi Udyog Ltd a good buy now?
Sinnar Bidi Udyog 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 Sinnar Bidi Udyog Ltd?
Sinnar Bidi Udyog Ltd revenue growth is -1.5% for FY-2025, which is above its 5-year CAGR of -2.9%, indicating faster growth.

Q.2 Gross Profit margin of Sinnar Bidi Udyog Ltd?
Sinnar Bidi Udyog Ltd Gross profit margin which is the profit after deduction of direct costs, is -2.5% for FY-2025, which is below its 5-year median of -1.9%, indicating decreasing margins.

Q.3 Operating Profit Margin of Sinnar Bidi Udyog Ltd?
Sinnar Bidi Udyog Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -2.5% for FY-2025, which is below its 5-year median of -1.47% indicating decreasing margins.

Q.4 Net Profit Margin of Sinnar Bidi Udyog Ltd?
Sinnar Bidi Udyog Ltd Net Profit Margin is -2.62% for FY-2025, is below its 5-year median of -2.35%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -2.5 -1.9
Operating Profit Margin (%) -2.5 -1.47
Net Profit Margin (%) -2.62 -2.35

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Sinnar Bidi Udyog Ltd?
Sinnar Bidi Udyog Ltd Return on Asset is -1.45%, which is below its 5-year historical median of -1.22%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Sinnar Bidi Udyog Ltd?
Sinnar Bidi Udyog Ltd Return on capital employed is -3.15% for FY-2025, which is below its 5-year historical median of -2.03%. 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 Sinnar Bidi Udyog Ltd?
Sinnar Bidi Udyog Ltd Return on equity is -2.79% for FY-2025, which is in line with its 5-year historical median of -2.79%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Sinnar Bidi Udyog Ltd?
Sinnar Bidi Udyog Ltd Cash conversion cycle is 181 days, below its 5-year historical median of 334 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) 0.55 0.54
ROE (%) -2.79 -2.79
ROCE (%) -3.15 -2.03
Cash Conversion Cycle 181 days 334 days

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

Q.9 Debt to Equity ratio of Sinnar Bidi Udyog Ltd?
Sinnar Bidi Udyog Ltd Debt-to-Equity ratio is 0.00, which is in line with the industry average of 0.00, indicating similar to debt levels in the industry.

Q.10 Debt to cash flow from operations of Sinnar Bidi Udyog Ltd?
Sinnar Bidi Udyog Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Sinnar Bidi Udyog Ltd?

Q.1 Promoter shareholding and pledge status of Sinnar Bidi Udyog Ltd?
Promoters hold 73.40% of the Sinnar Bidi Udyog Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Sinnar Bidi Udyog Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Sinnar Bidi Udyog Ltd vs industry peers?
Sinnar Bidi Udyog Ltd revenue CAGR is -2.90%, compared to the industry median CAGR of 2.43%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -1.5 2.4
Gross Profit Growth (%) -157.1 -7.4
Operating Profit Growth (%) 0 -6.5
Net Profit Growth (%) -200 -0.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.55 0.36
ROE (%) -2.79 0.39
ROCE (%) -3.15 2
Cash Conversion Cycle (days) 180.53 77

Valuation & price assessment

Q.1 Stock return of Sinnar Bidi Udyog Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 7.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
7.1% 29.9% 54.6% -11.6%
Q.2 Valuation ratios of Sinnar Bidi Udyog Ltd vs historical?
The current P/E ratio of 161.42 is higher than its historical median of 37.37, 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 161.42 37.37 28.10
Price to Book 6.87 4.30 3.27
Price to Sales 6.7 3.89 3.14
EV to EBITDA 148.78 31.52 18.20

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