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INVESTMENT INSIGHTS

Check Before You Invest : United Foodbrands Ltd

BSE: 543283 NSE: UFBL ISIN: INE382M01027
  |   Sector:  Travel & Hospitality   |   Industry:  Restaurants

Snapshot

Q.1 Which industry/sub-sector does United Foodbrands Ltd belong to?
United Foodbrands Ltd belongs to the Travel & Hospitality sector, operating specifically within the Restaurants segment.
Q.2 Is United Foodbrands Ltd a good quality company?
United Foodbrands 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 United Foodbrands Ltd undervalued or overvalued?
United Foodbrands Ltd appears Somewhat Undervalued, as its key valuation ratios are lower 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 5.57 5.92
Price to Sales 1.85 2.40
EV to EBITDA 14.12 14.21
Q.4 Is United Foodbrands Ltd a good buy now?
United Foodbrands Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 United Foodbrands Ltd?
United Foodbrands Ltd revenue growth is -6.2% for FY-2025, which is below its 5-year CAGR of 4.5%, indicating slower growth.

Q.2 Gross Profit margin of United Foodbrands Ltd?
United Foodbrands Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.7% for FY-2025, which is in line with its 5-year median of 10.3%, indicating stable margins.

Q.3 Operating Profit Margin of United Foodbrands Ltd?
United Foodbrands Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.46% for FY-2025, which is in line with its 5-year median of 14.73% indicating stable margins.

Q.4 Net Profit Margin of United Foodbrands Ltd?
United Foodbrands Ltd Net Profit Margin is -3.6% for FY-2025, is below its 5-year median of -2.83%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 10.7 10.3
Operating Profit Margin (%) 15.46 14.73
Net Profit Margin (%) -3.6 -2.83

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of United Foodbrands Ltd?
United Foodbrands Ltd Return on Asset is -3.13%, which is below its 5-year historical median of -2.32%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of United Foodbrands Ltd?
United Foodbrands Ltd Return on capital employed is 6.81% for FY-2025, which is in line with its 5-year historical median of 6.92%. 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 United Foodbrands Ltd?
United Foodbrands Ltd Return on equity is -9.42% for FY-2025, which is below its 5-year historical median of -7.62%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of United Foodbrands Ltd?
United Foodbrands Ltd Cash conversion cycle is -24 days, above its 5-year historical median of -26 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.87 0.87
ROE (%) -9.42 -7.62
ROCE (%) 6.81 6.92
Cash Conversion Cycle -24 days -26 days

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

Q.9 Debt to Equity ratio of United Foodbrands Ltd?
United Foodbrands Ltd Debt-to-Equity ratio is 0.16, which is above the industry average of 0.05, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of United Foodbrands Ltd?
United Foodbrands Ltd Debt to cash flow from operations is 0.38, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of United Foodbrands Ltd?

Q.1 Promoter shareholding and pledge status of United Foodbrands Ltd?
Promoters hold 34.59% of the United Foodbrands Ltd, with 0.64% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does United Foodbrands Ltd performance compare with that of its Peers?

Q.1 Revenue growth of United Foodbrands Ltd vs industry peers?
United Foodbrands Ltd revenue CAGR is 4.50%, compared to the industry median CAGR of 9.99%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -6.2 10
Gross Profit Growth (%) -1.9 17.8
Operating Profit Growth (%) -1.3 8.4
Net Profit Growth (%) 0 33.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.87 0.85
ROE (%) -9.42 2.11
ROCE (%) 6.81 8.22
Cash Conversion Cycle (days) -23.92 -26

Valuation & price assessment

Q.1 Stock return of United Foodbrands Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of -5.92% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR		 - -5.9% -9.6% 45.1%
Q.2 Valuation ratios of United Foodbrands 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 - - 35.75
Price to Book 5.57 5.92 3.09
Price to Sales 1.85 2.40 2.49
EV to EBITDA 14.12 14.21 15.61

Check more companies

1. Travel Food Services
2. Westlife Foodworld
3. Restau. Brands Asia
4. United Foodbrands
5. Coffee Day Enter.
6. Speciality Restauran
7. Vegorama Punjabi Ang
8. Vikram Kamats Hospit
9. Pecos Hotels & Pubs
10. Neopolitan Pizza

Check trending companies

1. RBL Bank Ltd.
2. L&T Technology Services Ltd.
3. Garden Reach Shipbuilders & Engineers Ltd.
4. Sun TV Network Ltd.
5. Solar Industries India Ltd.
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