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Check Before You Invest : ARC Insulation & Insulators Ltd

BSE: 0 NSE: ARCIIL ISIN: INE0YDV01010
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Plastic Products

Snapshot

Q.1 Which industry/sub-sector does ARC Insulation & Insulators Ltd belong to?
ARC Insulation & Insulators Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.
Q.2 Is ARC Insulation & Insulators Ltd a good quality company?
ARC Insulation & Insulators Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is ARC Insulation & Insulators Ltd undervalued or overvalued?
ARC Insulation & Insulators Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is ARC Insulation & Insulators Ltd a good buy now?
ARC Insulation & Insulators 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 ARC Insulation & Insulators Ltd?
ARC Insulation & Insulators Ltd revenue growth is 15% for FY-2025 , which is above its 5 year CAGR of 0% , indicating faster growth.
Q.2 Gross Profit margin of ARC Insulation & Insulators Ltd?
ARC Insulation & Insulators Ltd Gross profit margin which is the profit after deduction of direct costs, is 38.3% for FY-2025 , which is above its 5 year median of 28% , indicating increasing margins.
Q.3 Operating Profit Margin of ARC Insulation & Insulators Ltd?
ARC Insulation & Insulators Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 38.87% for FY-2025 , which is above its 5 year median of 28.39% indicating increasing margins.
Q.4 Net Profit Margin of ARC Insulation & Insulators Ltd?
ARC Insulation & Insulators Ltd Net Profit Margin is 26.18% for FY-2025 , is above with its 5 year median of 18.59%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 38.3 28
Operating Profit Margin 38.87 28.39
Net Profit Margin 26.18 18.59
Q.5 Return on Asset of ARC Insulation & Insulators Ltd?
ARC Insulation & Insulators Ltd Return on Asset is 27.9%, which is above its 5 year historical median of 23.85%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of ARC Insulation & Insulators Ltd?
ARC Insulation & Insulators Ltd Return on equity is 45.47% for FY-2025 , which is below its historical median of 55.2%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of ARC Insulation & Insulators Ltd?
ARC Insulation & Insulators Ltd Return on capital employed is 52.65% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of ARC Insulation & Insulators Ltd?
ARC Insulation & Insulators Ltd Cash conversion cycle is 77 days, above its historical median of 68 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.07 1.33
ROE 45.47 55.2
ROCE 52.65 52.82
Cash Conversion Cycle 77 days 68 days
Q.9 Debt to Equity ratio of ARC Insulation & Insulators Ltd?
ARC Insulation & Insulators Ltd Debt-to-Equity ratio is 0.24 , which is lower with the industry average of 0.26 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of ARC Insulation & Insulators Ltd?
ARC Insulation & Insulators Ltd Debt to cash flow from operations is 17.78 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of ARC Insulation & Insulators Ltd?
Promoters hold 64.51% of the ARC Insulation & Insulators Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of ARC Insulation & Insulators Ltd vs industry peers?
ARC Insulation & Insulators Ltd revenue CAGR is 0.00% , compared to the industry median CAGR of 4.83% , indicating stable growth and maintaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 32.7 82.5
Gross Profit 12.5 4.5
Operating Profit 12.7 5.5
Net Profit 8.6 2.4
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.07 1.05
ROE 45.47 5.96
ROCE 52.65 8.72
Cash Conversion Cycle (days) 76.83 77

Valuation & price assessment

Q.1 Stock return of ARC Insulation & Insulators Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - - -
Q.3 Valuation ratios of ARC Insulation & Insulators Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 5.69 9.32 38.68
Price to Book 1.72 1.37 1.89
Price to Sales 1.49 2.44 1.26
EV to EBITDA 4.1 6.47 11.07

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