Sapphire Foods India Ltd. (SAPPHIRE) AI Stock Analysis

• Market Cap: ₹91.61B
• Dividend Yield: N/A
• Average Volume (3M): 14.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: 10.18%
• EPS Growth: -104.25%
• Country: IN
• Employees: 12,499
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -0.35
• Shares Outstanding: 321,382,900
• 10 Day Avg. Volume: 9,615
• 30 Day Avg. Volume: 14,639
• PEG Ratio: -7.66
• Price to Book (P/B): 6.74
• Price to Sales (P/S): 3.27
• P/FCF Ratio: 38.74
• 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: ₹335.00
• Price Target Upside: 35.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: ₹256.00 ▲(3.85% Upside)

Sapphire Foods India Ltd. has a mixed outlook. The company's financial performance is strong, driven by revenue growth and a solid gross profit margin. However, technical indicators show bearish momentum, and the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors contribute to a moderate overall stock score.

Positive Factors

Revenue Growth

Sapphire Foods' consistent revenue growth indicates successful market expansion and product adoption, strengthening its market position in the QSR sector.

Brand Leverage

Leveraging established global brands allows Sapphire Foods to benefit from brand recognition and customer loyalty, enhancing competitive advantage and market penetration.

Cash Flow Generation

Strong cash flow generation supports operational stability and provides the company with financial flexibility for future investments and growth initiatives.

Negative Factors

Net Profit Margin Challenges

Declining net profit margins due to rising operational costs suggest a need for efficiency improvements to sustain profitability and shareholder value.

High Leverage

High leverage can pose financial risks, limiting flexibility and increasing vulnerability to economic downturns, necessitating careful debt management.

Free Cash Flow Conversion

Challenges in converting net income to free cash flow highlight potential inefficiencies in cash management, impacting long-term financial health and investment capacity.

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 sales of food and beverages in its restaurant outlets. The company's revenue model is centered around its franchise operations for global brands such as KFC, Pizza Hut, and Taco Bell, allowing it to leverage established brand recognition and customer loyalty. Key revenue streams include dine-in, takeout, and delivery services, with a growing emphasis on online ordering and digital sales channels. Significant partnerships with delivery platforms further enhance its market reach. Additionally, Sapphire benefits from economies of scale in procurement and operational efficiency, contributing positively to its profit margins.

Sapphire Foods India Ltd. Financial Statement Overview

Summary

Sapphire Foods shows strong revenue growth and a robust gross profit margin, but faces challenges with net profit margin and high leverage. Cash flow generation is healthy, though conversion of net income into free cash flow needs improvement.

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	29.40B	28.82B	25.94B	22.66B	17.15B	10.16B
Gross Profit	14.39B	9.89B	9.05B	12.32B	8.25B	4.72B
EBITDA	4.86B	4.77B	4.95B	4.59B	3.43B	1.71B
Net Income	89.40M	192.53M	528.09M	2.33B	464.60M	-984.63M
Balance Sheet
Total Assets	0.00	30.41B	28.40B	25.94B	21.64B	13.49B
Cash, Cash Equivalents and Short-Term Investments	2.28B	2.28B	1.81B	2.88B	4.07B	767.41M
Total Debt	0.00	12.92B	11.64B	9.63B	7.89B	6.45B
Total Liabilities	-13.96B	16.45B	15.00B	13.40B	11.58B	8.70B
Stockholders Equity	13.96B	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: 246.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 246.5 is below the 20-day moving average (MA) of 259.99, below the 50-day MA of 280.25, and below the 200-day MA of 309.12, indicating a bearish trend. The MACD of -9.18 indicates Negative momentum. The RSI at 33.35 is Neutral, neither overbought nor oversold. The STOCH value of 17.50 is Positive, 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	64 Neutral	₹35.40B	42.31	―	0.35%	0.68%	-45.98%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DEVYANI	54 Neutral	₹167.12B	―	―	―	20.91%	-202.35%
WESTLIFE	52 Neutral	₹91.18B	242.50	―	0.13%	6.65%	73.46%
SAPPHIRE	50 Neutral	₹91.61B	-11,976.89	―	―	10.18%	-104.25%
BARBEQUE	45 Neutral	₹7.81B	-19.86	―	―	-1.36%	-516.77%
RBA	41 Neutral	₹39.27B	-18.21	―	―	7.75%	20.28%

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.