Check Before You Invest : Spice Lounge Food Works Ltd

BSE: 539895 NSE: ISIN: INE631E01024

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does Spice Lounge Food Works Ltd belong to?

Spice Lounge Food Works Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is Spice Lounge Food Works Ltd a good quality company?

Spice Lounge Food Works Ltd is a weak quality company, based on a inconsistent 5-year financial track record.

Q.3 Is Spice Lounge Food Works Ltd undervalued or overvalued?

Spice Lounge Food Works Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Spice Lounge Food Works Ltd a good buy now?

Spice Lounge Food Works 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 Total Income growth of Spice Lounge Food Works Ltd?

Spice Lounge Food Works Ltd Operating Income growth is NA% for FY-2025, which is in line with its 5-year CAGR of NA%, indicating stable growth.

Q.2 Return on Assets of Spice Lounge Food Works Ltd?

Spice Lounge Food Works Ltd Return on Asset is 0.4%, which is above its 5-year historical median of -2.3%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	29.32	-1.62
PPOP%	-	-
RoA%	0.4	-2.3

Q.3 Return on Equity (ROE) of Spice Lounge Food Works Ltd?

Spice Lounge Food Works Ltd Return on Equity is 0.4% for FY-2025, which is above its 5-year historical median of -3%, indicating the business is making better use of its shareholders capital.

Q.4 Net Profit Margin of Spice Lounge Food Works Ltd?

Spice Lounge Food Works Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 29.32% for FY-2025, which is above its 5-year median( -1.62%), indicating increasing margins.

Q.5 Total Asset growth of Spice Lounge Food Works Ltd?

Spice Lounge Food Works Ltd Total Asset growth is 2525% for FY-2025, which is above its 5-year CAGR of 103.62%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Spice Lounge Food Works Ltd?

Promoters hold 0.00% of the Spice Lounge Food Works Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Spice Lounge Food Works Ltd vs Industry Peers?

Spice Lounge Food Works Ltd AUM CAGR is 103.62%, compared to the 5-year industry median CAGR of 9.45%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Spice Lounge Food Works Ltd vs industry peers

Spice Lounge Food Works Ltd profit metrics are in line with the industry median level of -0.88%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	29.32	9.95
PPOP%	-	-13.4
RoA%	0.4	0.8

Q.3 Operating efficiency of Spice Lounge Food Works Ltd vs industry peers?

Spice Lounge Food Works Ltd ROCE (-3) is below the industry median of (1.9); while the current ROE (-3) are below than the 5-year average Industry ROE (1.2). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	29.32	9.95
PPOP%	-	-13.4
RoA%	0.4	0.8
ROCE%	0.5	1.9
ROE%	0.4	1.2

Valuation & price assessment

Q.1 Stock return of Spice Lounge Food Works Ltd over the last decade?

Over the last 5 years, the stock has delivered a CAGR of 70.65% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	70.7%	63.9%	49.7%

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	3439.84	5714.29	33.72
Price to Book	13.18	4.84	0.94
Price to Sales	881.67	2644.61	12.44
EV to EBITDA	2108.45	-192.68	9.97

Q.4 Valuation ratios of Spice Lounge Food Works Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 13.18% is higher than its historical median of 4.84%, indicating that at the current price the stock is overvalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Spice Lounge Food Works Ltd return on invested capital (ROIC) is 0.37% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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