Check Before You Invest : Sundrop Brands Ltd

Q: Which industry/sub-sector does Sundrop Brands Ltd belong to?

Sundrop Brands Ltd belongs to the FMCG sector, operating specifically within the Edible Oil segment.

Q: Is Sundrop Brands Ltd a good quality company?

Sundrop Brands Ltd is a average quality company, based on a somewhat consistent 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 Sundrop Brands Ltd undervalued or overvalued?

Sundrop Brands Ltd appears Somewhat overvalued, as its key valuation ratios are higher than 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: 121.66, Historic Median: 112.30. Price to Book, Current: 1.72, Historic Median: 4.21. Price to Sales, Current: 2.88, Historic Median: 2.57. EV to EBITDA, Current: 58.15, Historic Median: 46.83

Q: Is Sundrop Brands Ltd a good buy now?

Sundrop Brands 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

Q: Revenue growth of Sundrop Brands Ltd?

Sundrop Brands Ltd revenue growth is 4.6% for FY-2025, which is above its 5-year CAGR of -1.03%, indicating faster growth.

Q: Gross Profit margin of Sundrop Brands Ltd?

Sundrop Brands Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.7% for FY-2025, which is below its 5-year median of 4.6%, indicating decreasing margins.

Q: Operating Profit Margin of Sundrop Brands Ltd?

Sundrop Brands Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.46% for FY-2025, which is below its 5-year median of 5.28% indicating decreasing margins.

Q: Net Profit Margin of Sundrop Brands Ltd?

Sundrop Brands Ltd Net Profit Margin is -13.96% for FY-2025, is below its 5-year median of 1.77%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 2.7, Historic Median: 4.6. Operating Profit Margin (%), Current: 2.46, Historic Median: 5.28. Net Profit Margin (%), Current: -13.96, Historic Median: 1.77

Q: Return on Asset of Sundrop Brands Ltd?

Sundrop Brands Ltd Return on Asset is -10.13%, which is below its 5-year historical median of 2.36%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Sundrop Brands Ltd?

Sundrop Brands Ltd Return on capital employed is -14.65% for FY-2025, which is below its 5-year historical median of 4.55%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Sundrop Brands Ltd

BSE: 500215 NSE: SUNDROP ISIN: INE209A01019

| Sector: FMCG | Industry: Edible Oil

Snapshot

Q.1 Which industry/sub-sector does Sundrop Brands Ltd belong to?

Sundrop Brands Ltd belongs to the FMCG sector, operating specifically within the Edible Oil segment.

Q.2 Is Sundrop Brands Ltd a good quality company?

Sundrop Brands Ltd is a average quality company, based on a somewhat consistent 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 Sundrop Brands Ltd undervalued or overvalued?

Sundrop Brands Ltd appears Somewhat overvalued, as its key valuation ratios are higher than 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	121.66	112.30
Price to Book	1.72	4.21
Price to Sales	2.88	2.57
EV to EBITDA	58.15	46.83

Q.4 Is Sundrop Brands Ltd a good buy now?

Sundrop Brands 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

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 Sundrop Brands Ltd?

Sundrop Brands Ltd revenue growth is 4.6% for FY-2025, which is above its 5-year CAGR of -1.03%, indicating faster growth.

Q.2 Gross Profit margin of Sundrop Brands Ltd?

Sundrop Brands Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.7% for FY-2025, which is below its 5-year median of 4.6%, indicating decreasing margins.

Q.3 Operating Profit Margin of Sundrop Brands Ltd?

Sundrop Brands Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.46% for FY-2025, which is below its 5-year median of 5.28% indicating decreasing margins.

Q.4 Net Profit Margin of Sundrop Brands Ltd?

Sundrop Brands Ltd Net Profit Margin is -13.96% for FY-2025, is below its 5-year median of 1.77%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	2.7	4.6
Operating Profit Margin (%)	2.46	5.28
Net Profit Margin (%)	-13.96	1.77

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Sundrop Brands Ltd?

Sundrop Brands Ltd Return on Asset is -10.13%, which is below its 5-year historical median of 2.36%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Sundrop Brands Ltd?

Sundrop Brands Ltd Return on capital employed is -14.65% for FY-2025, which is below its 5-year historical median of 4.55%. 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 Sundrop Brands Ltd?

Sundrop Brands Ltd Return on equity is -11.43% for FY-2025, which is below its 5-year historical median of 3.22%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Sundrop Brands Ltd?

Sundrop Brands Ltd Cash conversion cycle is 47 days, in line with its 5-year historical median of 47 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)	0.79	1.42
ROE (%)	-11.43	3.22
ROCE (%)	-14.65	4.55
Cash Conversion Cycle	47 days	47 days

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

Q.9 Debt to Equity ratio of Sundrop Brands Ltd?

Sundrop Brands Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.15, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Sundrop Brands Ltd?

Sundrop Brands Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Sundrop Brands Ltd?

Q.1 Promoter shareholding and pledge status of Sundrop Brands Ltd?

Promoters hold 38.91% of the Sundrop Brands Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Sundrop Brands Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Sundrop Brands Ltd vs industry peers?

Sundrop Brands Ltd revenue CAGR is -1.03%, compared to the industry median CAGR of 5.73%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	4.6	5.7
Gross Profit Growth (%)	-25.8	18.9
Operating Profit Growth (%)	-38.7	15.6
Net Profit Growth (%)	-1,210	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.79	2.52
ROE (%)	-11.43	7.9
ROCE (%)	-14.65	11.17
Cash Conversion Cycle (days)	47.19	45

Valuation & price assessment

Q.1 Stock return of Sundrop Brands Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 3.7% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	3.7%	-7.4%	-4.7%	-12.8%

Q.2 Valuation ratios of Sundrop Brands Ltd vs historical?

The current P/E ratio of 121.66 is higher than its historical median of 112.30, indicating that the stock is trading above 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	121.66	112.30	29.43
Price to Book	1.72	4.21	2.26
Price to Sales	2.88	2.57	0.65
EV to EBITDA	58.15	46.83	16.89

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Check Before You Invest : Sundrop Brands 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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