Check Before You Invest : Sonalis Consumer Products Ltd

Snapshot

Q.1 Which industry/sub-sector does Sonalis Consumer Products Ltd belong to?

Sonalis Consumer Products Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.

Q.2 Is Sonalis Consumer Products Ltd a good quality company?

Sonalis Consumer Products Ltd is a quality company, based on a 3-year financial track record.

Q.3 Is Sonalis Consumer Products Ltd undervalued or overvalued?

Sonalis Consumer Products Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Sonalis Consumer Products Ltd a good buy now?

Sonalis Consumer Products 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

Q.1 Return on capital employed (ROCE) of Sonalis Consumer Products Ltd?

Sonalis Consumer Products Ltd Return on capital employed is 43.35% for FY-2025, which is above its 3-year historical median of 1.49%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.2 Return on Asset of Sonalis Consumer Products Ltd?

Sonalis Consumer Products Ltd Return on Asset is 8.52%, which is above its 3-year historical median of 0.26%, indicating improved asset utilization efficiency.

Q.3 Return on Equity (ROE) of Sonalis Consumer Products Ltd?

Sonalis Consumer Products Ltd Return on equity is 37.95% for FY-2025, which is above its 3-year historical median of 0.5%, indicating the business is making better use of its shareholders capital.

Q.4 Cash conversion cycle of Sonalis Consumer Products Ltd?

Sonalis Consumer Products Ltd Cash conversion cycle is 16 days, below its 3-year historical median of 83 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover	3.43	2.07
ROE	37.95	0.5
ROCE	43.35	1.49
Cash Conversion Cycle	16 days	83 days

Q.5 Gross Profit margin of Sonalis Consumer Products Ltd?

Sonalis Consumer Products Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.4% for FY-2025, which is above its 3-year median of 2.1%, indicating increasing margins.

Q.6 Operating Profit Margin of Sonalis Consumer Products Ltd?

Sonalis Consumer Products Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.36% for FY-2025, which is above its 3-year median of 2.23% indicating increasing margins.

Q.7 Net Profit Margin of Sonalis Consumer Products Ltd?

Sonalis Consumer Products Ltd Net Profit Margin is 2.49% for FY-2025, is above with its 3-year median of 0.52%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin	3.4	2.1
Operating Profit Margin	3.36	2.23
Net Profit Margin	2.49	0.52

Q.8 Debt to Equity ratio of Sonalis Consumer Products Ltd?

Sonalis Consumer Products Ltd Debt-to-Equity ratio is 0.07, which is lower with the industry average of 0.47, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of Sonalis Consumer Products Ltd?

Sonalis Consumer Products Ltd Debt to cash flow from operations is -0.98, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sonalis Consumer Products Ltd?

Promoters hold 35.91% of the Sonalis Consumer Products Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sonalis Consumer Products Ltd vs industry peers?

Sonalis Consumer Products Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 14.22%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	-	14.2
Gross Profit Growth	7,080	NAN
Operating Profit Growth	11,866.7	19.7
Net Profit Growth	13,150	32.2

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	3.43	1.5
ROE	37.95	11.72
ROCE	43.35	13.42
Cash Conversion Cycle (days)	16.01	61

Valuation & price assessment

Q.1 Stock return of Sonalis Consumer Products Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -8.94% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-8.9%

Q.3 Valuation ratios of Sonalis Consumer Products Ltd vs historical?

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

Q.4 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	9.76	14.39	27.75
Price to Book	2.34	2.50	2.57
Price to Sales	0.24	1.28	1.46
EV to EBITDA	7.21	63.48	15.15

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