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Check Before You Invest : Sanstar Ltd

BSE: 544217 NSE: SANSTAR ISIN: INE08NE01025
  |   Sector:  FMCG   |   Industry:  Consumer Food

Snapshot

Q.1 Which industry/sub-sector does Sanstar Ltd belong to?
Sanstar Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.
Q.2 Is Sanstar Ltd a good quality company?
Sanstar Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Sanstar Ltd undervalued or overvalued?
Sanstar Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Sanstar Ltd a good buy now?
Sanstar Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Sanstar Ltd?
Sanstar Ltd revenue growth is -10.7% for FY-2025 , which is below its 5 year CAGR of 0% , indicating slower growth.
Q.2 Gross Profit margin of Sanstar Ltd?
Sanstar Ltd Gross profit margin which is the profit after deduction of direct costs, is 7% for FY-2025 , which is below its 5 year median of 8% , indicating decreasing margins.
Q.3 Operating Profit Margin of Sanstar Ltd?
Sanstar Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.89% for FY-2025 , which is below its 5 year median of 9.17% indicating decreasing margins.
Q.4 Net Profit Margin of Sanstar Ltd?
Sanstar Ltd Net Profit Margin is 4.59% for FY-2025 , is in line with with its 5 year median of 4.59%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 7 8
Operating Profit Margin 5.89 9.17
Net Profit Margin 4.59 4.59
Q.5 Return on Asset of Sanstar Ltd?
Sanstar Ltd Return on Asset is 6.73%, which is below its 5 year historical median of 7.78%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Sanstar Ltd?
Sanstar Ltd Return on equity is 10.34% for FY-2025 , which is below its historical median of 42.19%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Sanstar Ltd?
Sanstar Ltd Return on capital employed is 12.49% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Sanstar Ltd?
Sanstar Ltd Cash conversion cycle is 52 days, above its historical median of 21 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.47 2.52
ROE 10.34 42.19
ROCE 12.49 23.12
Cash Conversion Cycle 52 days 21 days
Q.9 Debt to Equity ratio of Sanstar Ltd?
Sanstar Ltd Debt-to-Equity ratio is 0.04 , which is lower with the industry average of 0.49 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Sanstar Ltd?
Sanstar Ltd Debt to cash flow from operations is 0.7 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sanstar Ltd?
Promoters hold 70.38% of the Sanstar Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sanstar Ltd vs industry peers?
Sanstar Ltd revenue CAGR is 0.00% , compared to the industry median CAGR of 6.97% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 953.4 117.4
Gross Profit 66.7 5
Operating Profit 56 7
Net Profit 44 2.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.47 1.2
ROE 10.34 7.15
ROCE 12.49 10.41
Cash Conversion Cycle (days) 51.66 51

Valuation & price assessment

Q.1 Stock return of Sanstar Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -12.12% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - - -12.1%
Q.3 Valuation ratios of Sanstar Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 79.81 26.27 51.80
Price to Book 2.42 2.69 2.42
Price to Sales 1.96 1.64 1.42
EV to EBITDA 44.5 13.43 14.55

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