Sundrop Brands
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Sundrop Brands is navigating a transformative phase, with management emphasizing operational efficiency and product innovation to drive growth. The integration of Sundrop and Del Monte onto a unified ERP system is expected to enhance margins and streamline operations, aligning with Vista's forecast of stable profit margins and moderate revenue growth. Management's focus on high-potential categories, particularly popcorn and breakfast cereals, supports the revenue outlook, while the commitment to sustainable practices positions the company favorably against rising input costs. However, challenges in the spreads and Italian segments necessitate careful monitoring. The FMCG sector's overall expansion, coupled with a stable macroeconomic environment, provides a supportive backdrop for Sundrop's growth trajectory. Over the next 12-24 months, key opportunities include leveraging e-commerce channels and capitalizing on emerging consumer trends, while headwinds may arise from agricultural supply chain volatility and competitive pricing pressures. Vista's expected upside of approximately 68% reflects confidence in Sundrop's strategic direction and operational improvements, with a 12-month target price of ₹1133.33 and a 24-month target of ₹1323.83
Why We Like This Stock
- Management's focus on integrating Sundrop and Del Monte onto a single ERP system is expected to drive operational efficiency and margin expansion
- The emphasis on high-growth categories like popcorn and breakfast cereals aligns with consumer trends and supports revenue growth
- Sundrop's commitment to sustainable practices enhances its competitive position amid rising input costs
Things To Watch Out For
- Challenges in the spreads and Italian categories could hinder overall revenue performance if not addressed effectively
- Agricultural supply chain volatility poses risks to operational stability and cost management
- Competitive pricing pressures in the FMCG sector may limit margin expansion opportunities
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 760 | 899 | 1,549 | 1,573 | 2,054 |
| Profit Before Tax (Cr.) | 11 | 0 | 27 | 68 | 76 |
| PBT Margin | 1.5% | 0.0% | 174.3% | 4.3% | 3.7% |
| Net Profit (Cr.) | 10 | 0 | 27 | 51 | 57 |
| Earnings Per Share | 2.7 | 0.1 | 7.2 | 13.6 | 15.1 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Sundrop Brands Limited manufactures, markets, trades in, and sells food products and edible oils in India and internationally. It offers ready to cook snacks, such as instant, microwave, and diet popcorn under the ACT II brand, as well as sweet corn, kits, and sauces; ready to eat popcorn and gift box under the ACT II brand, extruded snacks, and nachos; and cereal snacks, chocolate confectionery products, peanut spreads and butters, choco spreads, dips, oats, and almonds under the Sundrop brand, as well as masala oats. The company was formerly known as Agro Tech Foods Limited and changed its name to Sundrop Brands Limited in March 2025. The company was incorporated in 1986 and is based in Gurugram, India.