Foods and Inns Ltd

Foods and Inns Ltd maintains a debt-to-equity ratio of 1.18, indicating a moderate reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 1.35, suggesting it can cover its short-term liabilities but with limited buffer. The operating cash flow is negative at -218.12 million INR, and capital expenditures are significant at -641.60 million INR, indicating ongoing investment in operations. The company's return on equity is 1.31%, and return on assets is 0.51%, both below the typical thresholds for strong performance in the food processing industry.

The company's profitability is modest, with a net income of 52.26 million INR and an operating income of 337.67 million INR. The gross profit margin is 26.46%, which is in line with the industry average. However, the return on equity and return on assets are below the median for the industry, indicating that the company is not generating strong returns relative to its equity and asset base.

Foods and Inns Ltd's revenue is concentrated in a single business segment, with no disclosed geographic diversification. The company's total revenue is 3.45 billion INR, and there is no information on revenue by region or product line. This lack of diversification could expose the company to regional or product-specific risks.

The company's growth trajectory is uncertain, with no specific guidance provided for the current or next fiscal year. The operating cash flow is negative, and capital expenditures are high, which may indicate that the company is investing in expansion or modernization. However, the lack of positive cash flow could constrain future growth unless these investments yield returns.

The company faces moderate liquidity risk due to its negative operating cash flow and high capital expenditures. The debt-to-equity ratio of 1.18 suggests that the company is leveraged, and the risk of dilution is assessed as low. There are no immediate signs of equity dilution, and the number of shares outstanding has not changed between basic and diluted figures.

There are no recent filings or transcripts that provide additional insight into the company's operations or strategic direction. The analyst estimates are uniform, with a mean price target of 74.00 INR and a mean recommendation of 4.00, indicating a neutral stance from analysts.

Net income surged 80.7% CAGR over four years, demonstrating strong historical profitability growth despite recent revenue stagnation.

Free cash flow turned positive in FY2025, marking a significant improvement from negative cash flows in prior years.

Analyst consensus suggests 19.9% upside potential, with a mean price target of INR 74 versus the current market price.

Net income increased 14.2% year-over-year in FY2025, showing resilience in profitability despite a slight revenue decline.

Debt-to-equity ratio of 1.18 is in the bottom quartile of the cohort, signaling significantly higher leverage risk than peers.

The company faces high credit risk, posing a significant threat to financial stability and potential default probabilities.

Return on equity of 1.3% is well below the cohort median of 5.0%, reflecting poor capital efficiency relative to peers.

Cash conversion ratio of -4.17 is in the bottom quartile, highlighting severe inefficiencies in converting earnings to cash.

Revenue INR 9.92B, −2,8% YoY; Operating income −5,3% YoY.

• ▍Revenue INR 9.92B, −2,8% YoY
• ▍Operating income −5,3% YoY
• ▍Net income +14,2% YoY
• ▍Free cash flow +123,1% YoY
• ▍Net margin 4.2%

Revenue INR 10.20B, +2,5% YoY; Operating income +19,2% YoY.

• ▍Revenue INR 10.20B, +2,5% YoY
• ▍Operating income +19,2% YoY
• ▍Net income −22,6% YoY
• ▍Free cash flow −270,0% YoY
• ▍Net margin 3.6%

Revenue INR 9.96B, +57,5% YoY; Operating income +130,5% YoY.

• ▍Revenue INR 9.96B, +57,5% YoY
• ▍Operating income +130,5% YoY
• ▍Net income +210,1% YoY
• ▍Free cash flow +82,4% YoY
• ▍Net margin 4.8%

Revenue INR 6.32B, +70,5% YoY; Operating income +306,8% YoY.

• ▍Revenue INR 6.32B, +70,5% YoY
• ▍Operating income +306,8% YoY
• ▍Net income +289,1% YoY
• ▍Free cash flow −298,0% YoY
• ▍Net margin 2.4%

Revenue INR 3.71B; Operating income INR 93.1M.

• ▍Revenue INR 3.71B
• ▍Operating income INR 93.1M
• ▍Net margin 1.1%