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Check Before You Invest : Aritas Vinyl Ltd

BSE: 544683 NSE: ISIN: INE1D8001016
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Aritas Vinyl Ltd belong to?
Aritas Vinyl Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Aritas Vinyl Ltd a good quality company?
Aritas Vinyl 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 Aritas Vinyl Ltd undervalued or overvalued?
Aritas Vinyl Ltd appears 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 3-year
Historic Median
Price to Earnings 7.19 7.78
Price to Book 0.56 0.61
Price to Sales 0.3 0.33
EV to EBITDA 7.47 7.74
Q.4 Is Aritas Vinyl Ltd a good buy now?
Aritas Vinyl 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 Aritas Vinyl Ltd?
Aritas Vinyl Ltd revenue growth is 42% for FY-2025, which is below its 3-year CAGR of 47.44%, indicating slower growth.

Q.2 Gross Profit margin of Aritas Vinyl Ltd?
Aritas Vinyl Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.5% for FY-2025, which is above its 3-year median of 4.1%, indicating increasing margins.

Q.3 Operating Profit Margin of Aritas Vinyl Ltd?
Aritas Vinyl Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.69% for FY-2025, which is above its 3-year median of 6.29% indicating increasing margins.

Q.4 Net Profit Margin of Aritas Vinyl Ltd?
Aritas Vinyl Ltd Net Profit Margin is 4.23% for FY-2025, is above its 3-year median of 2.42%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 6.5 4.1
Operating Profit Margin (%) 8.69 6.29
Net Profit Margin (%) 4.23 2.42

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Aritas Vinyl Ltd?
Aritas Vinyl Ltd Return on Asset is 4.82%, which is above its 3-year historical median of 2.48%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Aritas Vinyl Ltd?
Aritas Vinyl Ltd Return on capital employed is 13.14% for FY-2025, which is above its 3-year historical median of 8.43%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Aritas Vinyl Ltd?
Aritas Vinyl Ltd Return on equity is 31.99% for FY-2025, which is in line with its 3-year historical median of 32.14%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Aritas Vinyl Ltd?
Aritas Vinyl Ltd Cash conversion cycle is 136 days, in line with its 3-year historical median of 136 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 1.14 1.08
ROE (%) 31.99 32.14
ROCE (%) 13.14 8.43
Cash Conversion Cycle 136 days 136 days

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

Q.9 Debt to Equity ratio of Aritas Vinyl Ltd?
Aritas Vinyl Ltd Debt-to-Equity ratio is 1.82, which is above the industry average of 0.42, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Aritas Vinyl Ltd?
Aritas Vinyl Ltd Debt to cash flow from operations is 4.25, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Aritas Vinyl Ltd?

Q.1 Promoter shareholding and pledge status of Aritas Vinyl Ltd?
Promoters hold 27.99% of the Aritas Vinyl Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Aritas Vinyl Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Aritas Vinyl Ltd vs industry peers?
Aritas Vinyl Ltd revenue CAGR is 47.44%, compared to the industry median CAGR of 1.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 42 1
Gross Profit Growth (%) 124.6 6.8
Operating Profit Growth (%) 96.1 6.1
Net Profit Growth (%) 147.3 10
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.14 0.97
ROE (%) 31.99 4.83
ROCE (%) 13.14 7.46
Cash Conversion Cycle (days) 135.91 101

Valuation & price assessment

Q.1 Stock return of Aritas Vinyl 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 Aritas Vinyl Ltd vs historical?
The current P/E ratio of 7.19 is lower than its historical median of 7.78, 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 7.19 7.78 21.85
Price to Book 0.56 0.61 1.39
Price to Sales 0.3 0.33 1.29
EV to EBITDA 7.47 7.74 10.21

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