Check Before You Invest : Sapphire Foods India Ltd

BSE: 543397 NSE: SAPPHIRE ISIN: INE806T01020

| Sector: FMCG | Industry: Consumer Food

Snapshot

Q.1 Which industry/sub-sector does Sapphire Foods India Ltd belong to?

Sapphire Foods India Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.

Q.2 Is Sapphire Foods India Ltd a good quality company?

Sapphire Foods India Ltd is a average quality company, based on a somewhat consistent 7-year financial track record.

Q.3 Is Sapphire Foods India Ltd undervalued or overvalued?

Sapphire Foods India Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Sapphire Foods India Ltd a good buy now?

Sapphire Foods India 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

Q.1 Revenue growth of Sapphire Foods India Ltd?

Sapphire Foods India Ltd revenue growth is 11.1% for FY-2025, which is below its 5-year CAGR of 16.54%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Sapphire Foods India Ltd?

Sapphire Foods India Ltd Return on capital employed is 9.68% for FY-2025, which is below its 5-year historical median of 12.81%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.3 Return on Asset of Sapphire Foods India Ltd?

Sapphire Foods India Ltd Return on Asset is 0.59%, which is below its 5-year historical median of 2%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Sapphire Foods India Ltd?

Sapphire Foods India Ltd Return on equity is 1.25% for FY-2025, which is below its 5-year historical median of 4.1%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Sapphire Foods India Ltd?

Sapphire Foods India Ltd Cash conversion cycle is -17 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	1.02	0.98
ROE	1.25	4.1
ROCE	9.68	12.81
Cash Conversion Cycle	-17 days	-24 days

Q.6 Gross Profit margin of Sapphire Foods India Ltd?

Sapphire Foods India Ltd Gross profit margin which is the profit after deduction of direct costs, is 14% for FY-2025, which is below its 5-year median of 15.2%, indicating decreasing margins.

Q.7 Operating Profit Margin of Sapphire Foods India Ltd?

Sapphire Foods India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.54% for FY-2025, which is below its 5-year median of 17.79% indicating decreasing margins.

Q.8 Net Profit Margin of Sapphire Foods India Ltd?

Sapphire Foods India Ltd Net Profit Margin is 0.58% for FY-2025, is below with its 5-year median of 2%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	14	15.2
Operating Profit Margin	16.54	17.79
Net Profit Margin	0.58	2

Q.9 Debt to Equity ratio of Sapphire Foods India Ltd?

Sapphire Foods India Ltd Debt-to-Equity ratio is 0.01, which is lower with the industry average of 0.59, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Sapphire Foods India Ltd?

Sapphire Foods India Ltd Debt to cash flow from operations is 0.04, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sapphire Foods India Ltd?

Promoters hold 26.07% of the Sapphire Foods India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sapphire Foods India Ltd vs industry peers?

Sapphire Foods India Ltd revenue CAGR is 16.54%, compared to the industry median CAGR of 10.95%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	11.1	11
Gross Profit Growth	2	12
Operating Profit Growth	3.5	NAN
Net Profit Growth	-67.3	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.02	1.33
ROE	1.25	9.91
ROCE	9.68	11.48
Cash Conversion Cycle (days)	-17.39	62

Valuation & price assessment

Q.1 Stock return of Sapphire Foods India Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of -7.79% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-7.8%	-35.6%

Q.3 Valuation ratios of Sapphire Foods India Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	-	80.85	26.64
Price to Book	4.74	7.00	2.52
Price to Sales	2.11	3.66	1.43
EV to EBITDA	13.02	18.80	14.44

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