Oct 8, 2017

Sanwaria Consumer Ltd in packaged food

Sanwaria Consumer Ltd was called Sanwaria agro earlier. It is one of the largest integrated food processors in India and is engaged in the business of manufacturing and selling of Rice, edible oil and staple food products like Pulses, Sugar, Soya Chunks, Wheat Flour, Rice Flour, Salt, Suji, Maida, Besan, Daliya, Soya Meal etc.

Before more details come here, I request you to go to there website and check their products range.

Mentioned about it on Friday, 6th Oct here so that if investors want to buy then he can buy. It is going on UC from few days but it could be just a start of the journey.

Few highlights - Good and bad:

  • Very High debt. D/E = 2.44
  • Interest Coverage Ratio = 1.75
  • Management quality is important factor but its management quality is not good as 2-3 times it got punished. Management is trying to win confidence. Declared dividend and bonus share in recent past.
  • Result is coming very much better than earlier from Dec 2016. 
  • Current valuation of PE = 10, it is still very cheap.
  • At PE=10 for consumer stock, risk can be taken, I think.
  • Working for Patanjali.
 CMP: Rs 8.85