Check Before You Invest : Vandan Foods Ltd

Q: Which industry/sub-sector does Vandan Foods Ltd belong to?

Vandan Foods Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Solvent Extraction segment.

Q: Is Vandan Foods Ltd a good quality company?

Vandan Foods 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: Is Vandan Foods Ltd undervalued or overvalued?

Vandan Foods Ltd appears Fair, as its key valuation ratios are in line with 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. Price to Earnings, Current: 4.86, Historic Median: 5.11. Price to Book, Current: 0.72, Historic Median: 0.82. Price to Sales, Current: 0.31, Historic Median: 0.33. EV to EBITDA, Current: 4.77, Historic Median: 4.76

Q: Is Vandan Foods Ltd a good buy now?

Vandan Foods 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

Q: Revenue growth of Vandan Foods Ltd?

Vandan Foods Ltd revenue growth is 122% for FY-2025, which is below its 3-year CAGR of 318.14%, indicating slower growth.

Q: Gross Profit margin of Vandan Foods Ltd?

Vandan Foods Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.8% for FY-2025, which is in line with its 3-year median of 8.6%, indicating stable margins.

Q: Operating Profit Margin of Vandan Foods Ltd?

Vandan Foods Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.04% for FY-2025, which is above its 3-year median of 8.58% indicating increasing margins.

Q: Net Profit Margin of Vandan Foods Ltd?

Vandan Foods Ltd Net Profit Margin is 6.38% for FY-2025, is above its 3-year median of 5.54%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 8.8, Historic Median: 8.6. Operating Profit Margin (%), Current: 10.04, Historic Median: 8.58. Net Profit Margin (%), Current: 6.38, Historic Median: 5.54

Q: Return on Asset of Vandan Foods Ltd?

Vandan Foods Ltd Return on Asset is 22.7%, which is in line with its 3-year historical median of 22.7%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Vandan Foods Ltd?

Vandan Foods Ltd Return on capital employed is 48.35% for FY-2025, which is in line with its 3-year historical median of 48.35%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Vandan Foods Ltd

Snapshot

Q.1 Which industry/sub-sector does Vandan Foods Ltd belong to?

Vandan Foods Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Solvent Extraction segment.

Q.2 Is Vandan Foods Ltd a good quality company?

Vandan Foods 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 Vandan Foods Ltd undervalued or overvalued?

Vandan Foods Ltd appears Fair, as its key valuation ratios are in line with 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	3-year Historic Median
Price to Earnings	4.86	5.11
Price to Book	0.72	0.82
Price to Sales	0.31	0.33
EV to EBITDA	4.77	4.76

Q.4 Is Vandan Foods Ltd a good buy now?

Vandan Foods 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 Vandan Foods Ltd?

Vandan Foods Ltd revenue growth is 122% for FY-2025, which is below its 3-year CAGR of 318.14%, indicating slower growth.

Q.2 Gross Profit margin of Vandan Foods Ltd?

Vandan Foods Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.8% for FY-2025, which is in line with its 3-year median of 8.6%, indicating stable margins.

Q.3 Operating Profit Margin of Vandan Foods Ltd?

Vandan Foods Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.04% for FY-2025, which is above its 3-year median of 8.58% indicating increasing margins.

Q.4 Net Profit Margin of Vandan Foods Ltd?

Vandan Foods Ltd Net Profit Margin is 6.38% for FY-2025, is above its 3-year median of 5.54%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin (%)	8.8	8.6
Operating Profit Margin (%)	10.04	8.58
Net Profit Margin (%)	6.38	5.54

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Vandan Foods Ltd?

Vandan Foods Ltd Return on Asset is 22.7%, which is in line with its 3-year historical median of 22.7%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Vandan Foods Ltd?

Vandan Foods Ltd Return on capital employed is 48.35% for FY-2025, which is in line with its 3-year historical median of 48.35%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Vandan Foods Ltd?

Vandan Foods Ltd Return on equity is 53.41% for FY-2025, which is in line with its 3-year historical median of 53.41%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Vandan Foods Ltd?

Vandan Foods Ltd Cash conversion cycle is 50 days, above its 3-year historical median of 29 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover (x)	3.56	3.56
ROE (%)	53.41	53.41
ROCE (%)	48.35	48.35
Cash Conversion Cycle	50 days	29 days

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

Q.9 Debt to Equity ratio of Vandan Foods Ltd?

Vandan Foods Ltd Debt-to-Equity ratio is 1.12, which is above the industry average of 0.09, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Vandan Foods Ltd?

Vandan Foods Ltd Debt to cash flow from operations is -1.5, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Vandan Foods Ltd?

Q.1 Promoter shareholding and pledge status of Vandan Foods Ltd?

Promoters hold 66.42% of the Vandan Foods Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Vandan Foods Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Vandan Foods Ltd vs industry peers?

Vandan Foods Ltd revenue CAGR is 318.14%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth (%)	122	0
Gross Profit Growth (%)	181.2	18.1
Operating Profit Growth (%)	216	13.3
Net Profit Growth (%)	180.9	9.6

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover (x)	3.56	0.87
ROE (%)	53.41	4.14
ROCE (%)	48.35	6.94
Cash Conversion Cycle (days)	49.98	29

Valuation & price assessment

Q.1 Stock return of Vandan Foods Ltd over the last decade?

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

Q.2 Valuation ratios of Vandan Foods Ltd vs historical?

The current P/E ratio of 4.86 is in line with than its historical median of 5.11, indicating that the stock is trading near its historical average valuation.

Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	4.86	5.11	19.37
Price to Book	0.72	0.82	1.63
Price to Sales	0.31	0.33	0.88
EV to EBITDA	4.77	4.76	9.20

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Check Before You Invest : Vandan Foods Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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