Check Before You Invest : Sun Retail Ltd

BSE: 542025 NSE: ISIN: INE206Z01020

| Sector: Miscellaneous | Industry: Trading

Snapshot

Q.1 Which industry/sub-sector does Sun Retail Ltd belong to?

Sun Retail Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.

Q.2 Is Sun Retail Ltd a good quality company?

Sun Retail Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Sun Retail Ltd undervalued or overvalued?

Sun Retail Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Sun Retail Ltd a good buy now?

Sun Retail 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 Revenue growth of Sun Retail Ltd?

Sun Retail Ltd revenue growth is -59% for FY-2025, which is below its 5-year CAGR of 77.59%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Sun Retail Ltd?

Sun Retail Ltd Return on capital employed is 0.93% for FY-2025, which is above its 5-year historical median of -0.11%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Sun Retail Ltd?

Sun Retail Ltd Return on Asset is 0.42%, which is above its 5-year historical median of -0.13%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Sun Retail Ltd?

Sun Retail Ltd Return on equity is 1.02% for FY-2025, which is above its 5-year historical median of -0.17%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Sun Retail Ltd?

Sun Retail Ltd Cash conversion cycle is -17 days, below its 5-year historical median of 45 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	1	0.46
ROE	1.02	-0.17
ROCE	0.93	-0.11
Cash Conversion Cycle	-17 days	45 days

Q.6 Gross Profit margin of Sun Retail Ltd?

Sun Retail Ltd Gross profit margin which is the profit after deduction of direct costs, is 0.3% for FY-2025, which is above its 5-year median of -1.6%, indicating increasing margins.

Q.7 Operating Profit Margin of Sun Retail Ltd?

Sun Retail Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -9.1% for FY-2025, which is below its 5-year median of -6.91% indicating decreasing margins.

Q.8 Net Profit Margin of Sun Retail Ltd?

Sun Retail Ltd Net Profit Margin is 0.43% for FY-2025, is above with its 5-year median of -1.07%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	0.3	-1.6
Operating Profit Margin	-9.1	-6.91
Net Profit Margin	0.43	-1.07

Q.9 Debt to Equity ratio of Sun Retail Ltd?

Sun Retail Ltd Debt-to-Equity ratio is 0.31, which is above with the industry average of 0.17, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Sun Retail Ltd?

Sun Retail Ltd Debt to cash flow from operations is -15.1, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sun Retail Ltd?

Promoters hold 0.00% of the Sun Retail Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sun Retail Ltd vs industry peers?

Sun Retail Ltd revenue CAGR is 77.59%, compared to the industry median CAGR of 12.68%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-59	12.7
Gross Profit Growth	0	17.9
Operating Profit Growth	0	15.5
Net Profit Growth	-84.8	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1	0.81
ROE	1.02	2.6
ROCE	0.93	3.8
Cash Conversion Cycle (days)	-16.52	61

Valuation & price assessment

Q.1 Stock return of Sun Retail Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of -24.88% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-24.9%	-14.3%	-35%

Q.3 Valuation ratios of Sun Retail Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 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	11.94	33.44
Price to Book	0.36	0.59	1.58
Price to Sales	0.15	0.87	2.20
EV to EBITDA	82.26	-12.70	14.05

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