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Check Before You Invest : Himalaya Food lnternational Ltd

BSE: 526899 NSE: ISIN: INE552B01010
  |   Sector:  Agriculture & Allied activities   |   Industry:  Agriculture

Snapshot

Q.1 Which industry/sub-sector does Himalaya Food lnternational Ltd belong to?
Himalaya Food lnternational Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Agriculture segment.
Q.2 Is Himalaya Food lnternational Ltd a good quality company?
Himalaya Food lnternational 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 Himalaya Food lnternational Ltd undervalued or overvalued?
Himalaya Food lnternational Ltd appears Overvalued, as its key valuation ratios are higher 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 14.59 14.06
Price to Book 0.51 0.88
Price to Sales 2.36 2.05
EV to EBITDA 5.29 8.77
Q.4 Is Himalaya Food lnternational Ltd a good buy now?
Himalaya Food lnternational 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 Himalaya Food lnternational Ltd?
Himalaya Food lnternational Ltd revenue growth is -14.2% for FY-2025, which is below its 5-year CAGR of -12.64%, indicating slower growth.

Q.2 Gross Profit margin of Himalaya Food lnternational Ltd?
Himalaya Food lnternational Ltd Gross profit margin which is the profit after deduction of direct costs, is 23.7% for FY-2025, which is in line with its 5-year median of 22.7%, indicating stable margins.

Q.3 Operating Profit Margin of Himalaya Food lnternational Ltd?
Himalaya Food lnternational Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 22.18% for FY-2025, which is in line with its 5-year median of 22.18% indicating stable margins.

Q.4 Net Profit Margin of Himalaya Food lnternational Ltd?
Himalaya Food lnternational Ltd Net Profit Margin is 9.73% for FY-2025, is in line with its 5-year median of 9.73%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 23.7 22.7
Operating Profit Margin (%) 22.18 22.18
Net Profit Margin (%) 9.73 9.73

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Himalaya Food lnternational Ltd?
Himalaya Food lnternational Ltd Return on Asset is 1.84%, which is in line with its 5-year historical median of 1.84%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Himalaya Food lnternational Ltd?
Himalaya Food lnternational Ltd Return on capital employed is 2.29% for FY-2025, which is in line with its 5-year historical median of 2.29%. 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 Himalaya Food lnternational Ltd?
Himalaya Food lnternational Ltd Return on equity is 2.79% for FY-2025, which is below its 5-year historical median of 3.61%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Himalaya Food lnternational Ltd?
Himalaya Food lnternational Ltd Cash conversion cycle is 350 days, above its 5-year historical median of 146 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) 0.19 0.22
ROE (%) 2.79 3.61
ROCE (%) 2.29 2.29
Cash Conversion Cycle 350 days 146 days

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

Q.9 Debt to Equity ratio of Himalaya Food lnternational Ltd?
Himalaya Food lnternational Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.13, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Himalaya Food lnternational Ltd?
Himalaya Food lnternational Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Himalaya Food lnternational Ltd?

Q.1 Promoter shareholding and pledge status of Himalaya Food lnternational Ltd?
Promoters hold 48.94% of the Himalaya Food lnternational Ltd, with 15.66% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Himalaya Food lnternational Ltd vs industry peers?
Himalaya Food lnternational Ltd revenue CAGR is -12.64%, compared to the industry median CAGR of 0.00%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -14.2 0
Gross Profit Growth (%) -10.2 15.2
Operating Profit Growth (%) -16.9 21.2
Net Profit Growth (%) -20.4 8.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.19 0.53
ROE (%) 2.79 7.6
ROCE (%) 2.29 8.57
Cash Conversion Cycle (days) 349.9 73

Valuation & price assessment

Q.1 Stock return of Himalaya Food lnternational Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
5% 3.6% -19.7% -17.7%
Q.2 Valuation ratios of Himalaya Food lnternational Ltd vs historical?
The current P/E ratio of 14.59 is in line with than its historical median of 14.06, 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 14.59 14.06 20.70
Price to Book 0.51 0.88 1.93
Price to Sales 2.36 2.05 1.89
EV to EBITDA 5.29 8.77 13.08

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