Check Before You Invest : Ashapura Minechem Ltd

Snapshot

Q.1 Which industry/sub-sector does Ashapura Minechem Ltd belong to?

Ashapura Minechem Ltd belongs to the Metals & Mining sector, operating specifically within the Mining & Minerals segment.

Q.2 Is Ashapura Minechem Ltd a good quality company?

Ashapura Minechem Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Ashapura Minechem Ltd undervalued or overvalued?

Ashapura Minechem Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Ashapura Minechem Ltd a good buy now?

Ashapura Minechem Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Ashapura Minechem Ltd?

Ashapura Minechem Ltd revenue growth is 11.5% for FY-2025, which is below its 5-year CAGR of 12.53%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Ashapura Minechem Ltd?

Ashapura Minechem Ltd Return on capital employed is 24.93% for FY-2025, which is in line with its 5-year historical median of 24.93%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Ashapura Minechem Ltd?

Ashapura Minechem Ltd Return on Asset is 13.75%, which is above its 5-year historical median of 8.77%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Ashapura Minechem Ltd?

Ashapura Minechem Ltd Return on equity is 33.63% for FY-2025, which is in line with its 5-year historical median of 33.63%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Ashapura Minechem Ltd?

Ashapura Minechem Ltd Cash conversion cycle is 191 days, above its 5-year historical median of 155 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.6	0.6
ROE	33.63	33.63
ROCE	24.93	24.93
Cash Conversion Cycle	191 days	155 days

Q.6 Gross Profit margin of Ashapura Minechem Ltd?

Ashapura Minechem Ltd Gross profit margin which is the profit after deduction of direct costs, is 21.8% for FY-2025, which is above its 5-year median of 15.8%, indicating increasing margins.

Q.7 Operating Profit Margin of Ashapura Minechem Ltd?

Ashapura Minechem Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.72% for FY-2025, which is in line with its 5-year median of 19.07% indicating stable margins.

Q.8 Net Profit Margin of Ashapura Minechem Ltd?

Ashapura Minechem Ltd Net Profit Margin is 22.76% for FY-2025, is above with its 5-year median of 13.2%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	21.8	15.8
Operating Profit Margin	19.72	19.07
Net Profit Margin	22.76	13.2

Q.9 Debt to Equity ratio of Ashapura Minechem Ltd?

Ashapura Minechem Ltd Debt-to-Equity ratio is 0.25, which is lower with the industry average of 0.3, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Ashapura Minechem Ltd?

Ashapura Minechem Ltd Debt to cash flow from operations is -1.67, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Ashapura Minechem Ltd?

Promoters hold 48.03% of the Ashapura Minechem Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Ashapura Minechem Ltd vs industry peers?

Ashapura Minechem Ltd revenue CAGR is 12.53%, compared to the industry median CAGR of 8.83%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	11.5	8.8
Gross Profit Growth	-6.9	21
Operating Profit Growth	-17.1	NAN
Net Profit Growth	-48.8	9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.6	0.44
ROE	33.63	9.11
ROCE	24.93	9.61
Cash Conversion Cycle (days)	190.51	133

Valuation & price assessment

Q.1 Stock return of Ashapura Minechem Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 23.7% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	23.7%	31.7%	66.3%	90.6%

Q.3 Valuation ratios of Ashapura Minechem Ltd vs historical?

The current P/E is higher 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	45.08	30.67	16.78
Price to Book	14.49	23.12	2.02
Price to Sales	13.81	8.96	6.14
EV to EBITDA	45.21	36.92	7.18

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