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Check Before You Invest : Sukhjit Starch & Chemicals Ltd

BSE: 524542 NSE: SUKHJITS ISIN: INE450E01029
  |   Sector:  FMCG   |   Industry:  Consumer Food

Snapshot

Q.1 Which industry/sub-sector does Sukhjit Starch & Chemicals Ltd belong to?
Sukhjit Starch & Chemicals Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.
Q.2 Is Sukhjit Starch & Chemicals Ltd a good quality company?
Sukhjit Starch & Chemicals Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Sukhjit Starch & Chemicals Ltd undervalued or overvalued?
Sukhjit Starch & Chemicals Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Sukhjit Starch & Chemicals Ltd a good buy now?
Sukhjit Starch & Chemicals Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Sukhjit Starch & Chemicals Ltd?
Sukhjit Starch & Chemicals Ltd revenue growth is 8.4% for FY-2025 , which is below its 5 year CAGR of 13.3% , indicating slower growth.
Q.2 Gross Profit margin of Sukhjit Starch & Chemicals Ltd?
Sukhjit Starch & Chemicals Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.5% for FY-2025 , which is below its 5 year median of 7.6% , indicating decreasing margins.
Q.3 Operating Profit Margin of Sukhjit Starch & Chemicals Ltd?
Sukhjit Starch & Chemicals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.93% for FY-2025 , which is below its 5 year median of 9.2% indicating decreasing margins.
Q.4 Net Profit Margin of Sukhjit Starch & Chemicals Ltd?
Sukhjit Starch & Chemicals Ltd Net Profit Margin is 2.66% for FY-2025 , is below with its 5 year median of 4.06%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 5.5 7.6
Operating Profit Margin 6.93 9.2
Net Profit Margin 2.66 4.06
Q.5 Return on Asset of Sukhjit Starch & Chemicals Ltd?
Sukhjit Starch & Chemicals Ltd Return on Asset is 3.75%, which is below its 5 year historical median of 5.53%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Sukhjit Starch & Chemicals Ltd?
Sukhjit Starch & Chemicals Ltd Return on equity is 7.21% for FY-2025 , which is below its historical median of 10.99%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Sukhjit Starch & Chemicals Ltd?
Sukhjit Starch & Chemicals Ltd Return on capital employed is 9.7% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Sukhjit Starch & Chemicals Ltd?
Sukhjit Starch & Chemicals Ltd Cash conversion cycle is 59 days, above its historical median of 55 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.41 1.41
ROE 7.21 10.99
ROCE 9.7 13.33
Cash Conversion Cycle 59 days 55 days
Q.9 Debt to Equity ratio of Sukhjit Starch & Chemicals Ltd?
Sukhjit Starch & Chemicals Ltd Debt-to-Equity ratio is 0.49 , which is in line with the industry average of 0.49 , indicating similar to debt levels in the industry.
Q.10 Debt to cash flow from operations of Sukhjit Starch & Chemicals Ltd?
Sukhjit Starch & Chemicals Ltd Debt to cash flow from operations is 4.92 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sukhjit Starch & Chemicals Ltd?
Promoters hold 66.07% of the Sukhjit Starch & Chemicals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sukhjit Starch & Chemicals Ltd vs industry peers?
Sukhjit Starch & Chemicals Ltd revenue CAGR is 13.26% , compared to the industry median CAGR of 6.97% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,486.2 117.4
Gross Profit 81.7 5
Operating Profit 103 7
Net Profit 39 2.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.41 1.2
ROE 7.21 7.15
ROCE 9.7 10.41
Cash Conversion Cycle (days) 58.73 51

Valuation & price assessment

Q.1 Stock return of Sukhjit Starch & Chemicals Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 11.7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 11.7% 12.9% -2.9% -17.4%
Q.3 Valuation ratios of Sukhjit Starch & Chemicals Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 36.78 11.04 51.80
Price to Book 0.97 0.41 2.42
Price to Sales 0.41 0.35 1.42
EV to EBITDA 12.08 5.32 14.55

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