Check Before You Invest : Abram Food Ltd

Q: Which industry/sub-sector does Abram Food Ltd belong to?

Abram Food Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.

Q: Is Abram Food Ltd a good quality company?

Abram Food 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 Abram Food Ltd undervalued or overvalued?

Abram Food 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. Price to Earnings, Current: 11.02, Historic Median: 18.29. Price to Book, Current: 1.6, Historic Median: 2.30. Price to Sales, Current: 0.56, Historic Median: 0.93. EV to EBITDA, Current: 8.3, Historic Median: 12.88

Q: Is Abram Food Ltd a good buy now?

Abram Food 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 Abram Food Ltd?

Abram Food Ltd revenue growth is 77.8% for FY-2025, which is above its 3-year CAGR of 43.2%, indicating faster growth.

Q: Gross Profit margin of Abram Food Ltd?

Abram Food Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.2% for FY-2025, which is above its 3-year median of 4.5%, indicating increasing margins.

Q: Operating Profit Margin of Abram Food Ltd?

Abram Food Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8% for FY-2025, which is above its 3-year median of 5.57% indicating increasing margins.

Q: Net Profit Margin of Abram Food Ltd?

Abram Food Ltd Net Profit Margin is 5.08% for FY-2025, is above its 3-year median of 2.83%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 7.2, Historic Median: 4.5. Operating Profit Margin (%), Current: 8, Historic Median: 5.57. Net Profit Margin (%), Current: 5.08, Historic Median: 2.83

Q: Return on Asset of Abram Food Ltd?

Abram Food Ltd Return on Asset is 23.5%, which is above its 3-year historical median of 11.11%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Abram Food Ltd?

Abram Food Ltd Return on capital employed is 37.95% for FY-2025, which is above its 3-year historical median of 22.07%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Snapshot

Q.1 Which industry/sub-sector does Abram Food Ltd belong to?

Abram Food Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.

Q.2 Is Abram Food Ltd a good quality company?

Abram Food 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 Abram Food Ltd undervalued or overvalued?

Abram Food 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	3-year Historic Median
Price to Earnings	11.02	18.29
Price to Book	1.6	2.30
Price to Sales	0.56	0.93
EV to EBITDA	8.3	12.88

Q.4 Is Abram Food Ltd a good buy now?

Abram Food 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 Abram Food Ltd?

Abram Food Ltd revenue growth is 77.8% for FY-2025, which is above its 3-year CAGR of 43.2%, indicating faster growth.

Q.2 Gross Profit margin of Abram Food Ltd?

Abram Food Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.2% for FY-2025, which is above its 3-year median of 4.5%, indicating increasing margins.

Q.3 Operating Profit Margin of Abram Food Ltd?

Abram Food Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8% for FY-2025, which is above its 3-year median of 5.57% indicating increasing margins.

Q.4 Net Profit Margin of Abram Food Ltd?

Abram Food Ltd Net Profit Margin is 5.08% for FY-2025, is above its 3-year median of 2.83%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin (%)	7.2	4.5
Operating Profit Margin (%)	8	5.57
Net Profit Margin (%)	5.08	2.83

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Abram Food Ltd?

Abram Food Ltd Return on Asset is 23.5%, which is above its 3-year historical median of 11.11%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Abram Food Ltd?

Abram Food Ltd Return on capital employed is 37.95% for FY-2025, which is above its 3-year historical median of 22.07%. 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 Abram Food Ltd?

Abram Food Ltd Return on equity is 51.75% for FY-2025, which is above its 3-year historical median of 27.98%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Abram Food Ltd?

Abram Food Ltd Cash conversion cycle is 65 days, in line with its 3-year historical median of 65 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover (x)	4.62	4.62
ROE (%)	51.75	27.98
ROCE (%)	37.95	22.07
Cash Conversion Cycle	65 days	65 days

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

Q.9 Debt to Equity ratio of Abram Food Ltd?

Abram Food Ltd Debt-to-Equity ratio is 0.85, which is above the industry average of 0.49, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Abram Food Ltd?

Abram Food Ltd Debt to cash flow from operations is -10.64, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Abram Food Ltd?

Q.1 Promoter shareholding and pledge status of Abram Food Ltd?

Promoters hold 67.33% of the Abram Food Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Abram Food Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Abram Food Ltd vs industry peers?

Abram Food Ltd revenue CAGR is 43.20%, compared to the industry median CAGR of 10.94%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth (%)	77.8	10.9
Gross Profit Growth (%)	184.6	22.6
Operating Profit Growth (%)	155.2	20.3
Net Profit Growth (%)	219.6	36.8

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover (x)	4.62	1.43
ROE (%)	51.75	10.62
ROCE (%)	37.95	13.41
Cash Conversion Cycle (days)	64.61	55

Valuation & price assessment

Q.1 Stock return of Abram Food 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 Abram Food Ltd vs historical?

The current P/E ratio of 11.02 is lower than its historical median of 18.29, indicating that the stock is trading below 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	11.02	18.29	26.80
Price to Book	1.6	2.30	2.57
Price to Sales	0.56	0.93	1.46
EV to EBITDA	8.3	12.88	14.89

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