Check Before You Invest : Source Natural Foods and Herbal Supplements Ltd

Snapshot

Q.1 Which industry/sub-sector does Source Natural Foods and Herbal Supplements Ltd belong to?

Source Natural Foods and Herbal Supplements Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q.2 Is Source Natural Foods and Herbal Supplements Ltd a good quality company?

Source Natural Foods and Herbal Supplements Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Source Natural Foods and Herbal Supplements Ltd undervalued or overvalued?

Source Natural Foods and Herbal Supplements Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Source Natural Foods and Herbal Supplements Ltd a good buy now?

Source Natural Foods and Herbal Supplements 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 Revenue growth of Source Natural Foods and Herbal Supplements Ltd?

Source Natural Foods and Herbal Supplements Ltd revenue growth is 64.5% for FY-2025, which is above its 5-year CAGR of 27.01%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Source Natural Foods and Herbal Supplements Ltd?

Source Natural Foods and Herbal Supplements Ltd Return on capital employed is 16.68% for FY-2025, which is below its 5-year historical median of 18.02%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Source Natural Foods and Herbal Supplements Ltd?

Source Natural Foods and Herbal Supplements Ltd Return on Asset is 9.53%, which is below its 5-year historical median of 10.54%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Source Natural Foods and Herbal Supplements Ltd?

Source Natural Foods and Herbal Supplements Ltd Return on equity is 13.89% for FY-2025, which is in line with its 5-year historical median of 13.89%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Source Natural Foods and Herbal Supplements Ltd?

Source Natural Foods and Herbal Supplements Ltd Cash conversion cycle is 82 days, below its 5-year historical median of 103 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.64	1.28
ROE	13.89	13.89
ROCE	16.68	18.02
Cash Conversion Cycle	82 days	103 days

Q.6 Gross Profit margin of Source Natural Foods and Herbal Supplements Ltd?

Source Natural Foods and Herbal Supplements Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.2% for FY-2025, which is below its 5-year median of 16.9%, indicating decreasing margins.

Q.7 Operating Profit Margin of Source Natural Foods and Herbal Supplements Ltd?

Source Natural Foods and Herbal Supplements Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.45% for FY-2025, which is below its 5-year median of 16.79% indicating decreasing margins.

Q.8 Net Profit Margin of Source Natural Foods and Herbal Supplements Ltd?

Source Natural Foods and Herbal Supplements Ltd Net Profit Margin is 6.46% for FY-2025, is below with its 5-year median of 10.72%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	9.2	16.9
Operating Profit Margin	11.45	16.79
Net Profit Margin	6.46	10.72

Q.9 Debt to Equity ratio of Source Natural Foods and Herbal Supplements Ltd?

Source Natural Foods and Herbal Supplements Ltd Debt-to-Equity ratio is 0.33, which is above with the industry average of 0.27, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Source Natural Foods and Herbal Supplements Ltd?

Source Natural Foods and Herbal Supplements Ltd Debt to cash flow from operations is 113.14, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Source Natural Foods and Herbal Supplements Ltd?

Promoters hold 74.37% of the Source Natural Foods and Herbal Supplements Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Source Natural Foods and Herbal Supplements Ltd vs industry peers?

Source Natural Foods and Herbal Supplements Ltd revenue CAGR is 27.01%, compared to the industry median CAGR of 8.30%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	64.5	8.3
Gross Profit Growth	7.7	14.7
Operating Profit Growth	15.2	11.4
Net Profit Growth	66.7	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.64	0.81
ROE	13.89	9.49
ROCE	16.68	11.91
Cash Conversion Cycle (days)	82.36	85

Valuation & price assessment

Q.1 Stock return of Source Natural Foods and Herbal Supplements Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 13.4% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	13.4%	-3.2%	12.9%	-17.6%

Q.3 Valuation ratios of Source Natural Foods and Herbal Supplements Ltd vs historical?

The current P/E is similar 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	30.06	30.82	31.09
Price to Book	3.41	4.26	2.85
Price to Sales	1.28	3.02	2.79
EV to EBITDA	15.02	18.41	15.87

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