Sapphire Foods India Ltd. (SAPPHIRE) AI Stock Analysis

• Market Cap: ₹103.16B
• Dividend Yield: N/A
• Average Volume (3M): 18.30K
• Price to Earnings (P/E): 1173.7
• Beta (1Y): 0.91
• Revenue Growth: 10.62%
• EPS Growth: -76.06%
• Country: IN
• Employees: 12,499
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -0.10
• Shares Outstanding: 321,382,900
• 10 Day Avg. Volume: 36,782
• 30 Day Avg. Volume: 18,305
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹344.29
• Price Target Upside: 6.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 61 Neutral
• Price Target: ₹350.00 ▲(8.29% Upside)

Sapphire Foods India Ltd. shows strong financial performance with robust revenue growth and a solid gross profit margin. However, the high P/E ratio suggests overvaluation, and technical indicators point to potential short-term weakness. The absence of a dividend yield and high leverage are additional concerns.

Sapphire Foods India Ltd. Business Overview & Revenue Model

Company Description

Sapphire Foods India Limited owns and operates restaurants in India and internationally. It also engages in the franchisee business. As of March 31, 2022, the company owned and operated 263 KFC and 219 Pizza Hut restaurants in India, 90 Pizza Hut and 5 Taco Bell restaurants in Sri Lanka, and 1 KFC and Pizza Hut restaurant in Maldives. Sapphire Foods India Limited was incorporated in 2009 and is based in Mumbai, India.

How the Company Makes Money

Sapphire Foods India Ltd. generates revenue primarily through the sale of food and beverages at its franchised quick-service restaurant outlets. The company earns money by operating over hundreds of KFC, Pizza Hut, and Taco Bell restaurants, benefiting from the strong brand recognition and customer loyalty associated with these global brands. Revenue streams include dine-in, takeaway, and delivery services, with significant contributions from both urban and semi-urban areas. Sapphire Foods also benefits from strategic partnerships with food delivery platforms to expand its reach and enhance customer convenience. The company leverages economies of scale in procurement and operational efficiencies to maintain profitability.

Sapphire Foods India Ltd. Financial Statement Overview

Summary

Sapphire Foods India Ltd. exhibits solid financial performance with strong revenue growth and a robust gross profit margin. The company's balance sheet is supported by a strong equity base, although high leverage remains a concern. Cash flow generation is healthy, but there is a need for improved conversion of net income into free cash flow. Overall, the company is on a positive trajectory with opportunities for margin and efficiency enhancements.

Income Statement

Sapphire Foods has shown a strong revenue growth trajectory, with a notable increase from the previous year. The gross profit margin is robust, indicating effective cost management. However, the net profit margin experienced a decline due to increased operational costs, suggesting a need for efficiency improvements. Overall, the company demonstrates good revenue growth and profitability, but with room for margin enhancements.

Balance Sheet

The company maintains a healthy equity ratio, signifying a strong equity base relative to its assets. However, the debt-to-equity ratio is somewhat elevated, suggesting reliance on debt financing, which could pose risks if not managed properly. Return on equity is positive but could improve with better net income performance.

Cash Flow

Sapphire Foods has shown a positive trend in free cash flow growth, supported by strong operating cash flow. The operating cash flow to net income ratio is healthy, indicating good cash generation from operations. However, the free cash flow to net income ratio suggests some challenges in converting net income into free cash flow, highlighting potential areas for cash management improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	28.82B	28.82B	25.94B	22.66B	17.15B	10.16B
Gross Profit	14.10B	15.89B	9.05B	12.32B	8.25B	4.72B
EBITDA	4.96B	4.77B	4.95B	4.59B	3.43B	1.71B
Net Income	192.53M	192.53M	528.09M	2.33B	464.60M	-984.63M
Balance Sheet
Total Assets	30.41B	30.41B	28.40B	25.94B	21.64B	13.49B
Cash, Cash Equivalents and Short-Term Investments	2.22B	2.22B	1.81B	2.88B	4.07B	767.41M
Total Debt	12.92B	12.92B	11.64B	9.63B	7.89B	6.45B
Total Liabilities	16.45B	16.45B	15.00B	13.40B	11.58B	8.70B
Stockholders Equity	13.98B	13.98B	13.39B	12.56B	10.07B	4.80B
Cash Flow
Free Cash Flow	0.00	2.43B	636.27M	-23.32M	1.10B	800.92M
Operating Cash Flow	0.00	5.08B	4.49B	3.82B	3.95B	1.54B
Investing Cash Flow	0.00	-3.37B	-1.87B	-2.04B	-6.92B	-779.24M
Financing Cash Flow	0.00	-2.11B	-2.12B	-1.95B	3.13B	-515.28M

Sapphire Foods India Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 323.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SAPPHIRE, the sentiment is Negative. The current price of 323.2 is below the 20-day moving average (MA) of 324.95, below the 50-day MA of 326.00, and above the 200-day MA of 319.82, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 48.63 is Neutral, neither overbought nor oversold. The STOCH value of 29.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SAPPHIRE.

Sapphire Foods India Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WONDERLA	74 Outperform	40.58B	39.82	6.34%	0.31%	-3.69%	-33.62%
DEVYANI	65 Neutral	220.39B	-1,845.11	0.84%	―	29.37%	-117.68%
SAPPHIRE	61 Neutral	₹103.16B	1,173.67		―	10.62%	-76.06%
WESTLIFE	59 Neutral	115.29B	1,135.37	2.01%	0.10%	5.80%	-76.79%
RBA	51 Neutral	46.63B	-21.95	-23.80%	―	5.21%	10.60%
BARBEQUE	43 Neutral	9.79B	-24.84	-7.66%	―	-0.97%	-181.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Sapphire Foods India Ltd. Corporate Events

Sapphire Foods Wins Tax Dispute Favorably

Sapphire Foods India Limited announced a favorable outcome in a legal dispute with the Income Tax Department of India concerning its subsidiary, Gamma Pizzakraft Lanka. The appellate authority ruled in favor of the subsidiary, nullifying the tax demand and associated penalties, which means there will be no financial or operational impact on the company or its subsidiary.