Check Before You Invest : ARC Insulation & Insulators Ltd

Q: 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: Is ARC Insulation & Insulators Ltd a good quality company?

ARC Insulation & Insulators Ltd is a quality company, based on a 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 ARC Insulation & Insulators Ltd undervalued or overvalued?

ARC Insulation & Insulators Ltd appears Fair, as its key valuation ratios are in line with 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: 6.73, Historic Median: 7.83. Price to Book, Current: 2.04, Historic Median: 2.27. Price to Sales, Current: 1.76, Historic Median: 2.05. EV to EBITDA, Current: 4.78, Historic Median: 5.49

Q: 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

Q: Revenue growth of ARC Insulation & Insulators Ltd?

ARC Insulation & Insulators Ltd revenue growth is 15% for FY-2025, which is below its 3-year CAGR of 41.54%, indicating slower growth.

Q: 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 3-year median of 31.7%, indicating increasing margins.

Q: 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 3-year median of 31.98% indicating increasing margins.

Q: Net Profit Margin of ARC Insulation & Insulators Ltd?

ARC Insulation & Insulators Ltd Net Profit Margin is 26.18% for FY-2025, is above its 3-year median of 21.45%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 38.3, Historic Median: 31.7. Operating Profit Margin (%), Current: 38.87, Historic Median: 31.98. Net Profit Margin (%), Current: 26.18, Historic Median: 21.45

Q: Return on Asset of ARC Insulation & Insulators Ltd?

ARC Insulation & Insulators Ltd Return on Asset is 27.9%, which is in line with its 3-year historical median of 27.9%, indicating stable asset utilization efficiency.

Q: 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 in line with its 3-year historical median of 52.65%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : ARC Insulation & Insulators Ltd

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 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 ARC Insulation & Insulators Ltd undervalued or overvalued?

ARC Insulation & Insulators Ltd appears Fair, as its key valuation ratios are in line with 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	3-year Historic Median
Price to Earnings	6.73	7.83
Price to Book	2.04	2.27
Price to Sales	1.76	2.05
EV to EBITDA	4.78	5.49

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

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.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of ARC Insulation & Insulators Ltd?

ARC Insulation & Insulators Ltd revenue growth is 15% for FY-2025, which is below its 3-year CAGR of 41.54%, indicating slower 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 3-year median of 31.7%, 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 3-year median of 31.98% 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 its 3-year median of 21.45%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin (%)	38.3	31.7
Operating Profit Margin (%)	38.87	31.98
Net Profit Margin (%)	26.18	21.45

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of ARC Insulation & Insulators Ltd?

ARC Insulation & Insulators Ltd Return on Asset is 27.9%, which is in line with its 3-year historical median of 27.9%, indicating stable asset utilization efficiency.

Q.6 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 in line with its 3-year historical median of 52.65%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 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 3-year historical median of 52.45%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of ARC Insulation & Insulators Ltd?

ARC Insulation & Insulators Ltd Cash conversion cycle is 77 days, above its 3-year historical median of 62 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover (x)	1.07	1.41
ROE (%)	45.47	52.45
ROCE (%)	52.65	52.65
Cash Conversion Cycle	77 days	62 days

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

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 the industry average of 0.25, 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

D: Promoter shareholding and pledge status of ARC Insulation & Insulators Ltd?

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)

E: How does ARC Insulation & Insulators Ltd performance compare with that of its Peers?

Q.1 Revenue growth of ARC Insulation & Insulators Ltd vs industry peers?

ARC Insulation & Insulators Ltd revenue CAGR is 41.54%, compared to the industry median CAGR of 4.30%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth (%)	15	4.3
Gross Profit Growth (%)	38.8	16.7
Operating Profit Growth (%)	40.4	11
Net Profit Growth (%)	40.5	20.5

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover (x)	1.07	1.11
ROE (%)	45.47	7.63
ROCE (%)	52.65	10.63
Cash Conversion Cycle (days)	76.83	75

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.

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

Q.2 Valuation ratios of ARC Insulation & Insulators Ltd vs historical?

The current P/E ratio of 6.73 is lower than its historical median of 7.83, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	6.73	7.83	25.87
Price to Book	2.04	2.27	1.92
Price to Sales	1.76	2.05	1.59
EV to EBITDA	4.78	5.49	13.18

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Check Before You Invest : ARC Insulation & Insulators Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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