United Foodbrands (UFBL)
TurnaroundFairStock Score: 9/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹754.9 |
| Market Cap | ₹2,952.99 Cr |
| P/E Ratio | 0 |
| ROCE | 4.57% |
| ROE | -16.74% |
| Dividend Yield | 0% |
| Profit Growth | -256.73% |
| Debt/Equity | 2.76 |
| Sales Growth | 43.4% |
| Promoter Holding | 34.56% |
| 52-Week Range | ₹172.34 — ₹853 |
| Sector | Leisure Services |
| Book Value | ₹79.38 |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
Let's be blunt: United Foodbrands fails my first test—don't lose money. This is a business with a price-to-earnings ratio of zero because it doesn't earn anything; the latest quarter shows net profit of -₹8 Cr on sales of ₹377 Cr. Profit growth is -256.73%—that is not a stumble, it is deterioration. Return on equity is -16.74%, meaning every rupee of equity is being eroded. The balance sheet worries me more: debt/equity at 2.42 with negative profits is a dangerous mix. The only bright spot is the top line: sales grew 14.50%, and quarterly revenue of ₹377 Cr against a ₹927 Cr market cap gives a rough annualised price-to-sales under 1. That suggests the market has already punished the stock. It trades 63% off its 52-week high of ₹842.70, but still well above the low of ₹172.34. That wide range tells me this is a volatile, speculative business. Book value is ₹103.54, yet price is ₹314.93—3.04 times book. I do not pay 3 times book for a company earning -16.74% on equity. The ROE alone would make Graham turn away. Positive ROCE of 4.57% is too thin; it barely covers the cost of capital, and with 2.42 times leverage, minority shareholders stand behind creditors. Promoters hold only 34.56%. In India, I want owners with a large, committed stake, especially when a company is burning cash. Dividend yield is zero, so the only return possible is from a successful turnaround. FairStock Score of 2/100 and Piotroski F-score of 4/9 confirm the financial position is weak. I would watch this from the sidelines. If management can close the loss gap, reduce debt, and show sustained profit, the turnaround case becomes interesting. Until then, this is not a Buffett-Graham stock; it is a speculation.
The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer