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Check Before You Invest : Sunil Agro Foods Ltd

BSE: 530953 NSE: ISIN: INE224D01012
  |   Sector:  FMCG   |   Industry:  Consumer Food

Snapshot

Q.1 Which industry/sub-sector does Sunil Agro Foods Ltd belong to?
Sunil Agro Foods Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.
Q.2 Is Sunil Agro Foods Ltd a good quality company?
Sunil Agro Foods 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 Sunil Agro Foods Ltd undervalued or overvalued?
Sunil Agro Foods Ltd appears Undervalued, as its key valuation ratios are lower 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 103.91 48.20
Price to Book 1.46 2.61
Price to Sales 0.11 0.20
EV to EBITDA 11.62 14.03
Q.4 Is Sunil Agro Foods Ltd a good buy now?
Sunil Agro Foods 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 Sunil Agro Foods Ltd?
Sunil Agro Foods Ltd revenue growth is 0.8% for FY-2025, which is below its 5-year CAGR of 10.58%, indicating slower growth.

Q.2 Gross Profit margin of Sunil Agro Foods Ltd?
Sunil Agro Foods Ltd Gross profit margin which is the profit after deduction of direct costs, is 0.1% for FY-2025, which is below its 5-year median of 1.3%, indicating decreasing margins.

Q.3 Operating Profit Margin of Sunil Agro Foods Ltd?
Sunil Agro Foods Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.23% for FY-2025, which is below its 5-year median of 2.57% indicating decreasing margins.

Q.4 Net Profit Margin of Sunil Agro Foods Ltd?
Sunil Agro Foods Ltd Net Profit Margin is -0.48% for FY-2025, is below its 5-year median of 0.42%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 0.1 1.3
Operating Profit Margin (%) 1.23 2.57
Net Profit Margin (%) -0.48 0.42

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Sunil Agro Foods Ltd?
Sunil Agro Foods Ltd Return on Asset is -1.23%, which is below its 5-year historical median of 1.25%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Sunil Agro Foods Ltd?
Sunil Agro Foods Ltd Return on capital employed is 3.51% for FY-2025, which is below its 5-year historical median of 8.45%. 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 Sunil Agro Foods Ltd?
Sunil Agro Foods Ltd Return on equity is -6.65% for FY-2025, which is below its 5-year historical median of 5.62%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Sunil Agro Foods Ltd?
Sunil Agro Foods Ltd Cash conversion cycle is 61 days, in line with its 5-year historical median of 60 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) 2.58 2.81
ROE (%) -6.65 5.62
ROCE (%) 3.51 8.45
Cash Conversion Cycle 61 days 60 days

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

Q.9 Debt to Equity ratio of Sunil Agro Foods Ltd?
Sunil Agro Foods Ltd Debt-to-Equity ratio is 2.03, which is above the industry average of 0.49, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Sunil Agro Foods Ltd?
Sunil Agro Foods Ltd Debt to cash flow from operations is 3.36, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Sunil Agro Foods Ltd?

Q.1 Promoter shareholding and pledge status of Sunil Agro Foods Ltd?
Promoters hold 72.30% of the Sunil Agro Foods Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Sunil Agro Foods Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Sunil Agro Foods Ltd vs industry peers?
Sunil Agro Foods Ltd revenue CAGR is 10.58%, compared to the industry median CAGR of 7.03%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 0.8 7
Gross Profit Growth (%) -92.2 13.3
Operating Profit Growth (%) -51.6 12.6
Net Profit Growth (%) -223.9 20.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 2.58 1.2
ROE (%) -6.65 7.22
ROCE (%) 3.51 11.34
Cash Conversion Cycle (days) 61.25 48

Valuation & price assessment

Q.1 Stock return of Sunil Agro Foods Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 6.2% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
6.2% 17.5% -19.1% -15.1%
Q.2 Valuation ratios of Sunil Agro Foods Ltd vs historical?
The current P/E ratio of 103.91 is higher than its historical median of 48.20, 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 103.91 48.20 26.55
Price to Book 1.46 2.61 2.53
Price to Sales 0.11 0.20 1.43
EV to EBITDA 11.62 14.03 14.38

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