Check Before You Invest : Alfa Ica (India) Ltd

Snapshot

Q.1 Which industry/sub-sector does Alfa Ica (India) Ltd belong to?

Alfa Ica (India) Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Laminates/Decoratives segment.

Q.2 Is Alfa Ica (India) Ltd a good quality company?

Alfa Ica (India) Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Alfa Ica (India) Ltd undervalued or overvalued?

Alfa Ica (India) Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Alfa Ica (India) Ltd a good buy now?

Alfa Ica (India) Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Alfa Ica (India) Ltd?

Alfa Ica (India) Ltd revenue growth is 14.7% for FY-2025, which is above its 5-year CAGR of 6.83%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Alfa Ica (India) Ltd?

Alfa Ica (India) Ltd Return on capital employed is 10.15% for FY-2025, which is below its 5-year historical median of 10.91%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Alfa Ica (India) Ltd?

Alfa Ica (India) Ltd Return on Asset is 3.09%, which is below its 5-year historical median of 3.95%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Alfa Ica (India) Ltd?

Alfa Ica (India) Ltd Return on equity is 6.39% for FY-2025, which is below its 5-year historical median of 8.02%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Alfa Ica (India) Ltd?

Alfa Ica (India) Ltd Cash conversion cycle is 91 days, below its 5-year historical median of 98 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.69	1.62
ROE	6.39	8.02
ROCE	10.15	10.91
Cash Conversion Cycle	91 days	98 days

Q.6 Gross Profit margin of Alfa Ica (India) Ltd?

Alfa Ica (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.2% for FY-2025, which is below its 5-year median of 4.6%, indicating decreasing margins.

Q.7 Operating Profit Margin of Alfa Ica (India) Ltd?

Alfa Ica (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.64% for FY-2025, which is in line with its 5-year median of 5.91% indicating stable margins.

Q.8 Net Profit Margin of Alfa Ica (India) Ltd?

Alfa Ica (India) Ltd Net Profit Margin is 1.83% for FY-2025, is below with its 5-year median of 2.26%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	4.2	4.6
Operating Profit Margin	5.64	5.91
Net Profit Margin	1.83	2.26

Q.9 Debt to Equity ratio of Alfa Ica (India) Ltd?

Alfa Ica (India) Ltd Debt-to-Equity ratio is 0.82, which is above with the industry average of 0.76, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Alfa Ica (India) Ltd?

Alfa Ica (India) Ltd Debt to cash flow from operations is 10.17, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Alfa Ica (India) Ltd?

Promoters hold 71.12% of the Alfa Ica (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Alfa Ica (India) Ltd vs industry peers?

Alfa Ica (India) Ltd revenue CAGR is 6.83%, compared to the industry median CAGR of 8.11%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	14.7	8.1
Gross Profit Growth	1.6	6
Operating Profit Growth	9.9	8.3
Net Profit Growth	-14.3	3.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.69	1.05
ROE	6.39	8.85
ROCE	10.15	10.91
Cash Conversion Cycle (days)	90.59	117

Valuation & price assessment

Q.1 Stock return of Alfa Ica (India) Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 13.3% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	13.3%	21%	19%	-5.7%

Q.3 Valuation ratios of Alfa Ica (India) Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	12.16	14.15	24.31
Price to Book	1.2	1.13	2.16
Price to Sales	0.36	0.34	1.05
EV to EBITDA	7	8.04	14.85

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