Check Before You Invest : Amic Forging Ltd

Q: Which industry/sub-sector does Amic Forging Ltd belong to?

Amic Forging Ltd belongs to the Automobiles sector, operating specifically within the Forgings segment.

Q: Is Amic Forging Ltd a good quality company?

Amic Forging Ltd is a weak quality company, based on a inconsistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Amic Forging Ltd undervalued or overvalued?

Amic Forging Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 56.74, Historic Median: 77.21. Price to Book, Current: 8.51, Historic Median: 19.58. Price to Sales, Current: 16.63, Historic Median: 11.72. EV to EBITDA, Current: 41.02, Historic Median: 51.73

Q: Is Amic Forging Ltd a good buy now?

Amic Forging 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

Q: Gross Profit margin of Amic Forging Ltd?

Amic Forging Ltd Gross profit margin which is the profit after deduction of direct costs, is 39.8% for FY-2025, which is above its 5-year median of 11.9%, indicating increasing margins.

Q: Operating Profit Margin of Amic Forging Ltd?

Amic Forging Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 23.1% for FY-2025, which is above its 5-year median of 11.71% indicating increasing margins.

Q: Net Profit Margin of Amic Forging Ltd?

Amic Forging Ltd Net Profit Margin is 29.31% for FY-2025, is above its 5-year median of 8.34%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 39.8, Historic Median: 11.9. Operating Profit Margin (%), Current: 23.1, Historic Median: 11.71. Net Profit Margin (%), Current: 29.31, Historic Median: 8.34

Q: Return on Asset of Amic Forging Ltd?

Amic Forging Ltd Return on Asset is 29.05%, which is above its 5-year historical median of 17.91%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Amic Forging Ltd?

Amic Forging Ltd Return on capital employed is 47.57% for FY-2025, which is above its 5-year historical median of 40.94%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q: Return on Equity (ROE) of Amic Forging Ltd?

Amic Forging Ltd Return on equity is 43.2% for FY-2025, which is above its 5-year historical median of 32.77%, indicating the business is making better use of its shareholders capital.

Snapshot

Q.1 Which industry/sub-sector does Amic Forging Ltd belong to?

Amic Forging Ltd belongs to the Automobiles sector, operating specifically within the Forgings segment.

Q.2 Is Amic Forging Ltd a good quality company?

Amic Forging Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Amic Forging Ltd undervalued or overvalued?

Amic Forging Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	56.74	77.21
Price to Book	8.51	19.58
Price to Sales	16.63	11.72
EV to EBITDA	41.02	51.73

Q.4 Is Amic Forging Ltd a good buy now?

Amic Forging 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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

Q.1 Gross Profit margin of Amic Forging Ltd?

Amic Forging Ltd Gross profit margin which is the profit after deduction of direct costs, is 39.8% for FY-2025, which is above its 5-year median of 11.9%, indicating increasing margins.

Q.2 Operating Profit Margin of Amic Forging Ltd?

Amic Forging Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 23.1% for FY-2025, which is above its 5-year median of 11.71% indicating increasing margins.

Q.3 Net Profit Margin of Amic Forging Ltd?

Amic Forging Ltd Net Profit Margin is 29.31% for FY-2025, is above its 5-year median of 8.34%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	39.8	11.9
Operating Profit Margin (%)	23.1	11.71
Net Profit Margin (%)	29.31	8.34

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Amic Forging Ltd?

Amic Forging Ltd Return on Asset is 29.05%, which is above its 5-year historical median of 17.91%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Amic Forging Ltd?

Amic Forging Ltd Return on capital employed is 47.57% for FY-2025, which is above its 5-year historical median of 40.94%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Amic Forging Ltd?

Amic Forging Ltd Return on equity is 43.2% for FY-2025, which is above its 5-year historical median of 32.77%, indicating the business is making better use of its shareholders capital.

C: How much debt does the business have and is it at a sustainable level?

Q.7 Debt to Equity ratio of Amic Forging Ltd?

Amic Forging Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.54, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Amic Forging Ltd?

Amic Forging Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Amic Forging Ltd?

Q.1 Promoter shareholding and pledge status of Amic Forging Ltd?

Promoters hold 57.96% of the Amic Forging Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Amic Forging Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Amic Forging Ltd vs industry peers?

Amic Forging Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 10.29%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-	10.3
Gross Profit Growth (%)	152.6	25.5
Operating Profit Growth (%)	75	18.7
Net Profit Growth (%)	157.1	27.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.99	0.92
ROE (%)	43.2	14.91
ROCE (%)	47.57	14.66
Cash Conversion Cycle (days)	51.14	112

Valuation & price assessment

Q.1 Stock return of Amic Forging Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of 19.05% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	19.1%

Q.2 Valuation ratios of Amic Forging Ltd vs historical?

The current P/E ratio of 56.74 is lower than its historical median of 77.21, indicating that the stock is trading below its historical average valuation.

Q.3 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	56.74	77.21	33.04
Price to Book	8.51	19.58	3.77
Price to Sales	16.63	11.72	1.87
EV to EBITDA	41.02	51.73	16.91

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