Why is United Foodbrands Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 3.82%
- Poor long term growth as Net Sales has grown by an annual rate of 13.24% over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.34 times
2
Flat results in Dec 25
- ROCE(HY) Lowest at 2.54%
- DEBT-EQUITY RATIO(HY) Highest at 2.52 times
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -44.57% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is United Foodbrand for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
United Foodbrand
-44.57%
-1.08
41.32%
Sensex
7.18%
0.64
11.21%
Quality key factors
Factor
Value
Sales Growth (5y)
13.24%
EBIT Growth (5y)
32.38%
EBIT to Interest (avg)
0.52
Debt to EBITDA (avg)
4.62
Net Debt to Equity (avg)
2.45
Sales to Capital Employed (avg)
1.01
Tax Ratio
5.57%
Dividend Payout Ratio
0
Pledged Shares
0.64%
Institutional Holding
26.13%
ROCE (avg)
2.17%
ROE (avg)
1.67%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
46
Price to Book Value
2.14
EV to EBIT
146.59
EV to EBITDA
7.57
EV to Capital Employed
1.33
EV to Sales
1.23
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
0.91%
ROE (Latest)
-16.58%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Movement
2What is working for the Company
NET SALES(Q)
Highest at Rs 376.57 cr
-6What is not working for the Company
ROCE(HY)
Lowest at 2.54%
DEBT-EQUITY RATIO(HY)
Highest at 2.52 times
Loading Valuation Snapshot...
Here's what is working for United Foodbrand
Net Sales - Quarterly
Highest at Rs 376.57 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 376.57 cr has Grown at 23.1% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 305.85 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for United Foodbrand
Debt-Equity Ratio - Half Yearly
Highest at 2.52 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






