Check Before You Invest : Valencia Nutrition Ltd

Q: Which industry/sub-sector does Valencia Nutrition Ltd belong to?

Valencia Nutrition Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.

Q: Is Valencia Nutrition Ltd a good quality company?

Valencia Nutrition Ltd is a weak quality company, based on a inconsistent 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 Valencia Nutrition Ltd undervalued or overvalued?

Valencia Nutrition 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: 112.57, Historic Median: -. Price to Book, Current: 2.95, Historic Median: 6.05. Price to Sales, Current: 14.27, Historic Median: 14.29. EV to EBITDA, Current: 79.8, Historic Median: -20.33

Q: Is Valencia Nutrition Ltd a good buy now?

Valencia Nutrition 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 Valencia Nutrition Ltd?

Valencia Nutrition Ltd revenue growth is 532.1% for FY-2025, which is above its 5-year CAGR of 29.01%, indicating faster growth.

Q: Gross Profit margin of Valencia Nutrition Ltd?

Valencia Nutrition Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.2% for FY-2025, which is above its 5-year median of -99.8%, indicating increasing margins.

Q: Operating Profit Margin of Valencia Nutrition Ltd?

Valencia Nutrition Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.13% for FY-2025, which is above its 5-year median of -120.8% indicating increasing margins.

Q: Net Profit Margin of Valencia Nutrition Ltd?

Valencia Nutrition Ltd Net Profit Margin is 12.68% for FY-2025, is above its 5-year median of -103.69%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 15.2, Historic Median: -99.8. Operating Profit Margin (%), Current: 10.13, Historic Median: -120.8. Net Profit Margin (%), Current: 12.68, Historic Median: -103.69

Q: Return on Asset of Valencia Nutrition Ltd?

Valencia Nutrition Ltd Return on Asset is 4.84%, which is above its 5-year historical median of -31.53%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Valencia Nutrition Ltd?

Valencia Nutrition Ltd Return on capital employed is 5.91% for FY-2025, which is above its 5-year historical median of -56.34%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Snapshot

Q.1 Which industry/sub-sector does Valencia Nutrition Ltd belong to?

Valencia Nutrition Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.

Q.2 Is Valencia Nutrition Ltd a good quality company?

Valencia Nutrition Ltd is a weak quality company, based on a inconsistent 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 Valencia Nutrition Ltd undervalued or overvalued?

Valencia Nutrition 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	112.57	-
Price to Book	2.95	6.05
Price to Sales	14.27	14.29
EV to EBITDA	79.8	-20.33

Q.4 Is Valencia Nutrition Ltd a good buy now?

Valencia Nutrition 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 Valencia Nutrition Ltd?

Valencia Nutrition Ltd revenue growth is 532.1% for FY-2025, which is above its 5-year CAGR of 29.01%, indicating faster growth.

Q.2 Gross Profit margin of Valencia Nutrition Ltd?

Valencia Nutrition Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.2% for FY-2025, which is above its 5-year median of -99.8%, indicating increasing margins.

Q.3 Operating Profit Margin of Valencia Nutrition Ltd?

Valencia Nutrition Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.13% for FY-2025, which is above its 5-year median of -120.8% indicating increasing margins.

Q.4 Net Profit Margin of Valencia Nutrition Ltd?

Valencia Nutrition Ltd Net Profit Margin is 12.68% for FY-2025, is above its 5-year median of -103.69%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	15.2	-99.8
Operating Profit Margin (%)	10.13	-120.8
Net Profit Margin (%)	12.68	-103.69

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Valencia Nutrition Ltd?

Valencia Nutrition Ltd Return on Asset is 4.84%, which is above its 5-year historical median of -31.53%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Valencia Nutrition Ltd?

Valencia Nutrition Ltd Return on capital employed is 5.91% for FY-2025, which is above its 5-year historical median of -56.34%. 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 Valencia Nutrition Ltd?

Valencia Nutrition Ltd Return on equity is 6.45% for FY-2025, which is above its 5-year historical median of -117.39%, indicating the business is making better use of its shareholders capital.

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

Q.8 Debt to Equity ratio of Valencia Nutrition Ltd?

Valencia Nutrition Ltd Debt-to-Equity ratio is 0.04, which is lower the industry average of 0.49, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of Valencia Nutrition Ltd?

Valencia Nutrition Ltd Debt to cash flow from operations is -0.09, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Valencia Nutrition Ltd?

Q.1 Promoter shareholding and pledge status of Valencia Nutrition Ltd?

Promoters hold 61.91% of the Valencia Nutrition Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Valencia Nutrition Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Valencia Nutrition Ltd vs industry peers?

Valencia Nutrition Ltd revenue CAGR is 29.01%, compared to the industry median CAGR of 6.98%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	532.1	7
Gross Profit Growth (%)	0	13.3
Operating Profit Growth (%)	0	12.6
Net Profit Growth (%)	0	20.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.38	1.2
ROE (%)	6.45	7.22
ROCE (%)	5.91	11.34
Cash Conversion Cycle (days)	223.8	48

Valuation & price assessment

Q.1 Stock return of Valencia Nutrition Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 48.21% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	48.2%	65.2%	39.7%

Q.2 Valuation ratios of Valencia Nutrition Ltd vs historical?

The current P/E ratio of 112.57 is higher than its historical median of , 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	112.57	-	26.55
Price to Book	2.95	6.05	2.53
Price to Sales	14.27	14.29	1.43
EV to EBITDA	79.8	-20.33	14.38

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