Check Before You Invest : Ajanta Soya Ltd

Q: Which industry/sub-sector does Ajanta Soya Ltd belong to?

Ajanta Soya Ltd belongs to the FMCG sector, operating specifically within the Edible Oil segment.

Q: Is Ajanta Soya Ltd a good quality company?

Ajanta Soya Ltd is a good quality company, based on a consistently good 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 Ajanta Soya Ltd undervalued or overvalued?

Ajanta Soya 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: 14.94, Historic Median: 10.96. Price to Book, Current: 1.29, Historic Median: 2.19. Price to Sales, Current: 0.16, Historic Median: 0.23. EV to EBITDA, Current: 7.6, Historic Median: 7.41

Q: Is Ajanta Soya Ltd a good buy now?

Ajanta Soya 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 Ajanta Soya Ltd?

Ajanta Soya Ltd revenue growth is 30.1% for FY-2025, which is above its 5-year CAGR of 11.84%, indicating faster growth.

Q: Gross Profit margin of Ajanta Soya Ltd?

Ajanta Soya Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.9% for FY-2025, which is in line with its 5-year median of 2.9%, indicating stable margins.

Q: Operating Profit Margin of Ajanta Soya Ltd?

Ajanta Soya Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.57% for FY-2025, which is in line with its 5-year median of 2.57% indicating stable margins.

Q: Net Profit Margin of Ajanta Soya Ltd?

Ajanta Soya Ltd Net Profit Margin is 2.04% for FY-2025, is in line with its 5-year median of 2.04%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 2.9, Historic Median: 2.9. Operating Profit Margin (%), Current: 2.57, Historic Median: 2.57. Net Profit Margin (%), Current: 2.04, Historic Median: 2.04

Q: Return on Asset of Ajanta Soya Ltd?

Ajanta Soya Ltd Return on Asset is 11.42%, which is in line with its 5-year historical median of 11.42%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Ajanta Soya Ltd?

Ajanta Soya Ltd Return on capital employed is 27.64% for FY-2025, which is in line with its 5-year historical median of 27.64%. 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 Ajanta Soya Ltd belong to?

Ajanta Soya Ltd belongs to the FMCG sector, operating specifically within the Edible Oil segment.

Q.2 Is Ajanta Soya Ltd a good quality company?

Ajanta Soya Ltd is a good quality company, based on a consistently good 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 Ajanta Soya Ltd undervalued or overvalued?

Ajanta Soya 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	5-year Historic Median
Price to Earnings	14.94	10.96
Price to Book	1.29	2.19
Price to Sales	0.16	0.23
EV to EBITDA	7.6	7.41

Q.4 Is Ajanta Soya Ltd a good buy now?

Ajanta Soya 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 Ajanta Soya Ltd?

Ajanta Soya Ltd revenue growth is 30.1% for FY-2025, which is above its 5-year CAGR of 11.84%, indicating faster growth.

Q.2 Gross Profit margin of Ajanta Soya Ltd?

Ajanta Soya Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.9% for FY-2025, which is in line with its 5-year median of 2.9%, indicating stable margins.

Q.3 Operating Profit Margin of Ajanta Soya Ltd?

Ajanta Soya Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.57% for FY-2025, which is in line with its 5-year median of 2.57% indicating stable margins.

Q.4 Net Profit Margin of Ajanta Soya Ltd?

Ajanta Soya Ltd Net Profit Margin is 2.04% for FY-2025, is in line with its 5-year median of 2.04%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	2.9	2.9
Operating Profit Margin (%)	2.57	2.57
Net Profit Margin (%)	2.04	2.04

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Ajanta Soya Ltd?

Ajanta Soya Ltd Return on Asset is 11.42%, which is in line with its 5-year historical median of 11.42%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Ajanta Soya Ltd?

Ajanta Soya Ltd Return on capital employed is 27.64% for FY-2025, which is in line with its 5-year historical median of 27.64%. 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 Ajanta Soya Ltd?

Ajanta Soya Ltd Return on equity is 18.75% for FY-2025, which is in line with its 5-year historical median of 18.75%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Ajanta Soya Ltd?

Ajanta Soya Ltd Cash conversion cycle is 11 days, below its 5-year historical median of 12 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 (x)	5.6	5.6
ROE (%)	18.75	18.75
ROCE (%)	27.64	27.64
Cash Conversion Cycle	11 days	12 days

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

Q.9 Debt to Equity ratio of Ajanta Soya Ltd?

Ajanta Soya Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.15, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Ajanta Soya Ltd?

Ajanta Soya Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Ajanta Soya Ltd?

Q.1 Promoter shareholding and pledge status of Ajanta Soya Ltd?

Promoters hold 49.80% of the Ajanta Soya Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Ajanta Soya Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Ajanta Soya Ltd vs industry peers?

Ajanta Soya Ltd revenue CAGR is 11.84%, compared to the industry median CAGR of 5.73%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	30.1	5.7
Gross Profit Growth (%)	387.5	18.9
Operating Profit Growth (%)	1,033.3	15.6
Net Profit Growth (%)	575	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	5.6	2.52
ROE (%)	18.75	7.9
ROCE (%)	27.64	11.17
Cash Conversion Cycle (days)	10.86	45

Valuation & price assessment

Q.1 Stock return of Ajanta Soya Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 27% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	27%	3.8%	-2.7%	-36.3%

Q.2 Valuation ratios of Ajanta Soya Ltd vs historical?

The current P/E ratio of 14.94 is higher than its historical median of 10.96, indicating that the stock is trading above 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	14.94	10.96	29.43
Price to Book	1.29	2.19	2.26
Price to Sales	0.16	0.23	0.65
EV to EBITDA	7.6	7.41	16.89

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