Sheetal Cool Products Ltd. (SCPL) AI Stock Analysis

• Market Cap: ₹3.31B
• Dividend Yield: N/A
• Average Volume (3M): 7.20K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 1.07
• Revenue Growth: -3.32%
• EPS Growth: -29.05%
• Country: IN
• Employees: 860
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Packaged Foods
• EPS (TTM): 3.82
• Shares Outstanding: 10,500,000
• 10 Day Avg. Volume: 19,951
• 30 Day Avg. Volume: 7,204
• PEG Ratio: -1.02
• Price to Book (P/B): 2.64
• Price to Sales (P/S): 1.07
• P/FCF Ratio: 17.44
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ₹347.00 ▲(52.66% Upside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

Sheetal Cool Products Ltd. scores a 64, reflecting a mixed financial performance with strong cash flow but declining revenue. Technical analysis indicates caution due to overbought conditions and bearish momentum. Valuation is moderate, with a reasonable P/E ratio but no dividend yield.

Positive Factors

High gross profit margin

A gross margin near 33% signals durable product economics and pricing power in the packaged foods/ice-cream segment. Sustained high gross margins provide a structural buffer against commodity cost swings, support reinvestment in distribution and new SKUs, and protect operating margins over the medium term.

Improved free cash flow and OCF conversion

Substantial improvement in free cash flow and an OCF-to-net-income ratio of 2.30 indicate strong cash generation versus accounting profits. Durable cash conversion enhances capacity to fund capex, service debt, and pursue organic growth or portfolio improvements without relying on external financing across the next 2-6 months.

Manageable leverage and improving ROE

A D/E of 0.57 and rising ROE to 12.64% reflect a balanced capital structure and better capital efficiency. Manageable leverage gives financial flexibility for investments or cyclical shocks, while improving ROE shows management is extracting more profit per unit of equity, a sustainable governance signal.

Negative Factors

Declining revenue

An 8.68% revenue decline in 2025 is a durable structural concern: shrinking top-line reduces economies of scale, limits pricing power, and forces higher reliance on efficiency gains to sustain earnings. Unless reversed, prolonged revenue contraction can erode long-term competitiveness and investment capacity.

Net profit margin compression

A falling net margin from 5.91% to 5.14% indicates margin leakage after gross profit, possibly from higher operating expenses or distribution costs. Persistent compression reduces internal funding for growth and weakens resilience to input-cost shocks, materially affecting long-term profitability sustainability.

Negative EPS growth

A c.17% decline in EPS signals weaker attributable earnings per share and may reflect lower profitability or share dilution. Over a medium-term horizon this undermines shareholder returns and can constrain management's ability to finance initiatives or pay dividends without altering capital allocation or operations.

Sheetal Cool Products Ltd. Business Overview & Revenue Model

Company Description

Sheetal Cool Products Limited engages in the manufacturing and selling of ice cream, milk and milk products, namkeen, bakery, and sweet products in India. It operates in two segments, Milk and Milk Products; and Namkeen Products. The company offers ice creams in cups, candies, bar, stick, pastry pack, kulfi, cones, novelties, sandwich, cakes, tubs, party pack, and catering pack under the Sheetal, Rick cream, and J'adore brand names; and milk and milk products. It also provides wafers, Indian savories, and fryums; frozen foods, such as paratha, chapati, curry, pizza, tikkis, vegetable pulav and biryani, thepla, poha bateta, sabudana khichdi, french fries, Bombay bhel, etc.; and bakery items comprising bread, pav, bun, cookies, rusk, khari, cream roll, frozen vegetables, etc., as well as sweets and various spices. The company was founded in 1987 and is based in Amreli, India.

How the Company Makes Money

SCPL generates revenue primarily through the sale of its cooling products, which include a comprehensive lineup of air conditioners, refrigerators, and industrial cooling systems. The company employs a multi-channel distribution strategy, leveraging partnerships with retailers, wholesalers, and e-commerce platforms to reach a broad customer base. In addition to product sales, SCPL also earns income through after-sales services and maintenance contracts, providing ongoing support and enhancing customer loyalty. Significant partnerships with key suppliers and technology providers further bolster SCPL's operational efficiency and product innovation, contributing to its competitive edge and overall earnings.

Sheetal Cool Products Ltd. Financial Statement Overview

Summary

Sheetal Cool Products Ltd. shows a mixed financial picture. Strong gross profit margin and improved cash flow contrast with declining revenue and net profit margin. Balance sheet indicates moderate financial health with manageable leverage.

Income Statement

Sheetal Cool Products Ltd. has shown a mixed performance in its income statement. The gross profit margin is strong at around 33.04% for 2025, indicating effective cost management. However, the net profit margin has decreased from 5.91% in 2024 to 5.14% in 2025, suggesting pressure on net earnings. Revenue growth was negative in 2025, with a decline of 8.68% from the previous year, which is concerning. The EBIT and EBITDA margins have been relatively stable, reflecting operational efficiency.

Balance Sheet

The balance sheet indicates a moderate level of financial health. The debt-to-equity ratio stands at 0.57 for 2025, showing manageable leverage. Return on equity improved to 12.64% in 2025, up from 11.20% in 2024, suggesting efficient use of equity capital. However, the equity ratio remains stable at around 52.23%, suggesting that half of the company's assets are financed by equity.

Cash Flow

Cash flow analysis shows a positive trajectory with improved free cash flow from negative figures in previous years to a positive 42.77% growth in 2025. The operating cash flow to net income ratio is robust at 2.30 in 2025, demonstrating strong cash generation capability relative to net income. Free cash flow to net income ratio is healthy at 1.20, indicating good cash flow management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.10B	3.22B	3.53B	3.40B	3.27B	2.32B
Gross Profit	973.23M	1.06B	779.91M	1.13B	799.33M	672.79M
EBITDA	341.52M	369.99M	456.16M	448.76M	406.12M	296.88M
Net Income	144.78M	165.69M	208.41M	204.54M	183.35M	60.96M
Balance Sheet
Total Assets	0.00	2.51B	2.35B	2.27B	1.96B	1.76B
Cash, Cash Equivalents and Short-Term Investments	100.23M	100.23M	50.42M	20.74M	9.43M	40.79M
Total Debt	0.00	752.00M	835.69M	857.77M	741.92M	713.40M
Total Liabilities	-1.31B	1.20B	1.20B	1.33B	1.23B	1.21B
Stockholders Equity	1.31B	1.31B	1.15B	936.88M	732.24M	547.96M
Cash Flow
Free Cash Flow	0.00	198.40M	139.00M	-31.94M	-7.69M	-99.98M
Operating Cash Flow	0.00	380.79M	299.11M	176.23M	58.45M	64.91M
Investing Cash Flow	0.00	-181.70M	-157.03M	-207.40M	-69.13M	-162.43M
Financing Cash Flow	0.00	-149.28M	-111.06M	41.15M	-20.68M	132.72M

Sheetal Cool Products Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 227.30
• 50DMA: Negative
• 100DMA: Positive
• 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:SCPL, the sentiment is Neutral. The current price of 227.3 is below the 20-day moving average (MA) of 329.72, below the 50-day MA of 316.88, and below the 200-day MA of 282.12, indicating a neutral trend. The MACD of 2.60 indicates Positive momentum. The RSI at 46.73 is Neutral, neither overbought nor oversold. The STOCH value of 35.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:SCPL.

Sheetal Cool Products Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INCREDIBLE	66 Neutral	₹1.64B	12.75	―	―	10.59%	82.10%
SCPL	64 Neutral	₹3.31B	21.08	―	―	-3.32%	-29.05%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
FCONSUMER	40 Underperform	₹718.93M	-1.44	―	―	11.54%	34.32%

Sheetal Cool Products Ltd. Corporate Events

Sheetal Cool Products Allots Convertible Warrants, Plans Shift of Registered Office to Ahmedabad

Sheetal Cool Products Ltd. has approved the allotment of 840,000 convertible warrants on a preferential basis to non-promoter investors after receiving 25% of the total subscription amount, raising about Rs 6.67 crore in initial proceeds. The move strengthens the company’s capital structure and brings in new non-promoter funding, which could support expansion and operational initiatives.

The board also cleared the appointment of M/s Pitroda Nayan & Co. as secretarial auditor for a five-year term, subject to shareholder approval, and proposed shifting its registered office from Amreli to Ahmedabad within the same registrar’s jurisdiction. These governance and administrative changes, along with a planned postal ballot for shareholder approvals, indicate efforts to professionalise compliance and reposition the company’s corporate base in a major commercial hub.

Sheetal Cool Products Announces Resignation of Company Secretary and Compliance Officer

Sheetal Cool Products Limited has announced that its Company Secretary and Compliance Officer, Mr. Bharat Trivedi, has resigned from his position with immediate effect, citing personal and unavoidable circumstances. The change, effective from the close of business on January 3, 2026, represents a shift in the company’s key managerial personnel and will require the appointment of a new compliance head to oversee regulatory and corporate governance obligations under SEBI’s listing regulations.

Sheetal Cool Products Announces Resignation of Secretarial Auditor

Sheetal Cool Products Limited has announced that M/s. Chetan Patel & Associates has resigned from the role of Secretarial Auditor of the company with immediate effect, effective January 3, 2026. The change, disclosed under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements, signals a shift in the company’s compliance and governance oversight arrangements, and the market will watch for the appointment of a new secretarial auditor and any implications this transition may have for the company’s regulatory reporting and corporate governance processes.