Check Before You Invest : Simran Farms Ltd

Q: Which industry/sub-sector does Simran Farms Ltd belong to?

Simran Farms Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Agriculture segment.

Q: Is Simran Farms Ltd a good quality company?

Simran Farms 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: Is Simran Farms Ltd undervalued or overvalued?

Simran Farms 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. Price to Earnings, Current: -, Historic Median: 8.03. Price to Book, Current: 1.41, Historic Median: 1.81. Price to Sales, Current: 0.09, Historic Median: 0.12. EV to EBITDA, Current: 40.88, Historic Median: 7.14

Q: Is Simran Farms Ltd a good buy now?

Simran Farms 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

Q: Revenue growth of Simran Farms Ltd?

Simran Farms Ltd revenue growth is 71.5% for FY-2025, which is above its 5-year CAGR of 24.31%, indicating faster growth.

Q: Gross Profit margin of Simran Farms Ltd?

Simran Farms Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.2% for FY-2025, which is below its 5-year median of 1.3%, indicating decreasing margins.

Q: Operating Profit Margin of Simran Farms Ltd?

Simran Farms Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.08% for FY-2025, which is below its 5-year median of 1.83% indicating decreasing margins.

Q: Net Profit Margin of Simran Farms Ltd?

Simran Farms Ltd Net Profit Margin is 0.69% for FY-2025, is below its 5-year median of 0.95%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 1.2, Historic Median: 1.3. Operating Profit Margin (%), Current: 1.08, Historic Median: 1.83. Net Profit Margin (%), Current: 0.69, Historic Median: 0.95

Q: Return on Asset of Simran Farms Ltd?

Simran Farms Ltd Return on Asset is 3.59%, which is in line with its 5-year historical median of 3.59%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Simran Farms Ltd?

Simran Farms Ltd Return on capital employed is 12.28% for FY-2025, which is in line with its 5-year historical median of 12.28%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Simran Farms Ltd

Snapshot

Q.1 Which industry/sub-sector does Simran Farms Ltd belong to?

Simran Farms Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Agriculture segment.

Q.2 Is Simran Farms Ltd a good quality company?

Simran Farms 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 Simran Farms Ltd undervalued or overvalued?

Simran Farms 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	-	8.03
Price to Book	1.41	1.81
Price to Sales	0.09	0.12
EV to EBITDA	40.88	7.14

Q.4 Is Simran Farms Ltd a good buy now?

Simran Farms 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 Simran Farms Ltd?

Simran Farms Ltd revenue growth is 71.5% for FY-2025, which is above its 5-year CAGR of 24.31%, indicating faster growth.

Q.2 Gross Profit margin of Simran Farms Ltd?

Simran Farms Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.2% for FY-2025, which is below its 5-year median of 1.3%, indicating decreasing margins.

Q.3 Operating Profit Margin of Simran Farms Ltd?

Simran Farms Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.08% for FY-2025, which is below its 5-year median of 1.83% indicating decreasing margins.

Q.4 Net Profit Margin of Simran Farms Ltd?

Simran Farms Ltd Net Profit Margin is 0.69% for FY-2025, is below its 5-year median of 0.95%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	1.2	1.3
Operating Profit Margin (%)	1.08	1.83
Net Profit Margin (%)	0.69	0.95

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Simran Farms Ltd?

Simran Farms Ltd Return on Asset is 3.59%, which is in line with its 5-year historical median of 3.59%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Simran Farms Ltd?

Simran Farms Ltd Return on capital employed is 12.28% for FY-2025, which is in line with its 5-year historical median of 12.28%. 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 Simran Farms Ltd?

Simran Farms Ltd Return on equity is 17.47% for FY-2025, which is in line with its 5-year historical median of 17.47%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Simran Farms Ltd?

Simran Farms Ltd Cash conversion cycle is 17 days, in line with its 5-year historical median of 17 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)	5.17	3.91
ROE (%)	17.47	17.47
ROCE (%)	12.28	12.28
Cash Conversion Cycle	17 days	17 days

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

Q.9 Debt to Equity ratio of Simran Farms Ltd?

Simran Farms Ltd Debt-to-Equity ratio is 1.15, which is above the industry average of 0.13, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Simran Farms Ltd?

Simran Farms Ltd Debt to cash flow from operations is -3.71, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Simran Farms Ltd?

Q.1 Promoter shareholding and pledge status of Simran Farms Ltd?

Promoters hold 42.27% of the Simran Farms Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Simran Farms Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Simran Farms Ltd vs industry peers?

Simran Farms Ltd revenue CAGR is 24.31%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	71.5	0
Gross Profit Growth (%)	335.7	15.2
Operating Profit Growth (%)	380.8	21.2
Net Profit Growth (%)	1,771	8.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	5.17	0.53
ROE (%)	17.47	7.6
ROCE (%)	12.28	8.57
Cash Conversion Cycle (days)	17.41	73

Valuation & price assessment

Q.1 Stock return of Simran Farms Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 20.9% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	20.9%	6.4%	16.9%	-7.6%

Q.2 Valuation ratios of Simran Farms Ltd vs historical?

The current P/E ratio of 0 is lower than its historical median of 8.03, 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	-	8.03	20.70
Price to Book	1.41	1.81	1.93
Price to Sales	0.09	0.12	1.89
EV to EBITDA	40.88	7.14	13.08

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Check Before You Invest : Simran Farms Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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