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Check Before You Invest : Jhandewalas Foods Ltd

BSE: 540850 NSE: ISIN: INE841Y01019
  |   Sector:  FMCG   |   Industry:  Consumer Food

Snapshot

Q.1 Which industry/sub-sector does Jhandewalas Foods Ltd belong to?
Jhandewalas Foods Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.
Q.2 Is Jhandewalas Foods Ltd a good quality company?
Jhandewalas 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 Jhandewalas Foods Ltd undervalued or overvalued?
Jhandewalas 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 5-year
Historic Median
Price to Earnings 8.34 -
Price to Book 1.39 -0.23
Price to Sales 0.59 0.52
EV to EBITDA 9.7 8.98
Q.4 Is Jhandewalas Foods Ltd a good buy now?
Jhandewalas 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 Jhandewalas Foods Ltd?
Jhandewalas Foods Ltd revenue growth is 222.7% for FY-2025, which is above its 5-year CAGR of 12.36%, indicating faster growth.

Q.2 Gross Profit margin of Jhandewalas Foods Ltd?
Jhandewalas Foods Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.5% for FY-2025, which is in line with its 5-year median of 7.5%, indicating stable margins.

Q.3 Operating Profit Margin of Jhandewalas Foods Ltd?
Jhandewalas Foods Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.66% for FY-2025, which is above its 5-year median of -17.67% indicating increasing margins.

Q.4 Net Profit Margin of Jhandewalas Foods Ltd?
Jhandewalas Foods Ltd Net Profit Margin is 7.04% for FY-2025, is above its 5-year median of -0.71%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 7.5 7.5
Operating Profit Margin (%) 7.66 -17.67
Net Profit Margin (%) 7.04 -0.71

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Jhandewalas Foods Ltd?
Jhandewalas Foods Ltd Return on Asset is 14.69%, which is above its 5-year historical median of -0.4%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Jhandewalas Foods Ltd?
Jhandewalas Foods Ltd Return on capital employed is 23.04% for FY-2025, which is above its 5-year historical median of 1.25%. 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 Jhandewalas Foods Ltd?
Jhandewalas Foods Ltd Return on equity is 72.84% for FY-2025, which is above its 5-year historical median of 13.8%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Jhandewalas Foods Ltd?
Jhandewalas Foods Ltd Cash conversion cycle is 29 days, above its 5-year historical median of 24 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) 2.15 1.07
ROE (%) 72.84 13.8
ROCE (%) 23.04 1.25
Cash Conversion Cycle 29 days 24 days

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

Q.9 Debt to Equity ratio of Jhandewalas Foods Ltd?
Jhandewalas Foods Ltd Debt-to-Equity ratio is 1.29, 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 Jhandewalas Foods Ltd?
Jhandewalas Foods Ltd Debt to cash flow from operations is -0.72, which is at a unhealthy level.

Ownership & governance

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

Q.1 Promoter shareholding and pledge status of Jhandewalas Foods Ltd?
Promoters hold 55.27% of the Jhandewalas Foods Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Jhandewalas Foods Ltd vs industry peers?
Jhandewalas Foods Ltd revenue CAGR is 12.36%, compared to the industry median CAGR of 6.98%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 222.7 7
Gross Profit Growth (%) 26.9 13.3
Operating Profit Growth (%) 0 12.6
Net Profit Growth (%) -75.2 20.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 2.15 1.2
ROE (%) 72.84 7.22
ROCE (%) 23.04 11.34
Cash Conversion Cycle (days) 28.62 48

Valuation & price assessment

Q.1 Stock return of Jhandewalas Foods Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 35.21% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 35.2% 71.2% -28.5%
Q.2 Valuation ratios of Jhandewalas Foods Ltd vs historical?
The current P/E ratio of 8.34 is higher than its historical median of , 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 8.34 - 26.55
Price to Book 1.39 -0.23 2.53
Price to Sales 0.59 0.52 1.43
EV to EBITDA 9.7 8.98 14.38

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