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Check Before You Invest : Greenchef Appliances Ltd

BSE: 0 NSE: GREENCHEF ISIN: INE0O7P01015
  |   Sector:  Consumer Durables   |   Industry:  Consumer Durables - Domestic Appliances

Snapshot

Q.1 Which industry/sub-sector does Greenchef Appliances Ltd belong to?
Greenchef Appliances Ltd belongs to the Consumer Durables sector, operating specifically within the Consumer Durables - Domestic Appliances segment.
Q.2 Is Greenchef Appliances Ltd a good quality company?
Greenchef Appliances Ltd is a weak quality company, based on a inconsistent 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 Greenchef Appliances Ltd undervalued or overvalued?
Greenchef Appliances Ltd appears 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 21.56 24.37
Price to Book 1.06 1.47
Price to Sales 0.34 0.51
EV to EBITDA 13.14 14.05
Q.4 Is Greenchef Appliances Ltd a good buy now?
Greenchef Appliances 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 Greenchef Appliances Ltd?
Greenchef Appliances Ltd revenue growth is 12.7% for FY-2025, which is above its 5-year CAGR of 9.42%, indicating faster growth.

Q.2 Gross Profit margin of Greenchef Appliances Ltd?
Greenchef Appliances Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.9% for FY-2025, which is above its 5-year median of 2.5%, indicating increasing margins.

Q.3 Operating Profit Margin of Greenchef Appliances Ltd?
Greenchef Appliances Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.92% for FY-2025, which is in line with its 5-year median of 3.92% indicating stable margins.

Q.4 Net Profit Margin of Greenchef Appliances Ltd?
Greenchef Appliances Ltd Net Profit Margin is 1.6% for FY-2025, is above its 5-year median of 1.46%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 2.9 2.5
Operating Profit Margin (%) 3.92 3.92
Net Profit Margin (%) 1.6 1.46

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Greenchef Appliances Ltd?
Greenchef Appliances Ltd Return on Asset is 2%, which is in line with its 5-year historical median of 2%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Greenchef Appliances Ltd?
Greenchef Appliances Ltd Return on capital employed is 6.13% for FY-2025, which is in line with its 5-year historical median of 6.39%. 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 Greenchef Appliances Ltd?
Greenchef Appliances Ltd Return on equity is 5.06% for FY-2025, which is below its 5-year historical median of 5.52%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Greenchef Appliances Ltd?
Greenchef Appliances Ltd Cash conversion cycle is 103 days, in line with its 5-year historical median of 103 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.25 1.77
ROE (%) 5.06 5.52
ROCE (%) 6.13 6.39
Cash Conversion Cycle 103 days 103 days

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

Q.9 Debt to Equity ratio of Greenchef Appliances Ltd?
Greenchef Appliances Ltd Debt-to-Equity ratio is 0.71, which is above the industry average of 0.15, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Greenchef Appliances Ltd?
Greenchef Appliances Ltd Debt to cash flow from operations is 2.52, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Greenchef Appliances Ltd?

Q.1 Promoter shareholding and pledge status of Greenchef Appliances Ltd?
Promoters hold 73.52% of the Greenchef Appliances Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Greenchef Appliances Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Greenchef Appliances Ltd vs industry peers?
Greenchef Appliances Ltd revenue CAGR is 9.42%, compared to the industry median CAGR of 10.02%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 12.7 10
Gross Profit Growth (%) 37.5 9.9
Operating Profit Growth (%) 25 8.3
Net Profit Growth (%) 20 5.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.25 1.4
ROE (%) 5.06 9.35
ROCE (%) 6.13 12.68
Cash Conversion Cycle (days) 102.65 51

Valuation & price assessment

Q.1 Stock return of Greenchef Appliances Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -16.45% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -16.5%
Q.2 Valuation ratios of Greenchef Appliances Ltd vs historical?
The current P/E ratio of 21.56 is lower than its historical median of 24.37, indicating that the stock is trading below 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 21.56 24.37 51.67
Price to Book 1.06 1.47 5.85
Price to Sales 0.34 0.51 2.78
EV to EBITDA 13.14 14.05 24.89

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