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Check Before You Invest : Asian Warehousing Ltd

BSE: 543927 NSE: ISIN: INE04Z101016
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Asian Warehousing Ltd belong to?
Asian Warehousing Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Asian Warehousing Ltd a good quality company?
Asian Warehousing 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 Asian Warehousing Ltd undervalued or overvalued?
Asian Warehousing Ltd appears Undervalued, as its key valuation ratios are lower 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 169.31 71.49
Price to Book 3.83 4.68
Price to Sales 5.04 7.62
EV to EBITDA 19.76 21.73
Q.4 Is Asian Warehousing Ltd a good buy now?
Asian Warehousing 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 Asian Warehousing Ltd?
Asian Warehousing Ltd revenue growth is 30.7% for FY-2025, which is above its 5-year CAGR of 0.87%, indicating faster growth.

Q.2 Gross Profit margin of Asian Warehousing Ltd?
Asian Warehousing Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.6% for FY-2025, which is below its 5-year median of 19%, indicating decreasing margins.

Q.3 Operating Profit Margin of Asian Warehousing Ltd?
Asian Warehousing Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 34.99% for FY-2025, which is below its 5-year median of 72.14% indicating decreasing margins.

Q.4 Net Profit Margin of Asian Warehousing Ltd?
Asian Warehousing Ltd Net Profit Margin is 2.82% for FY-2025, is below its 5-year median of 8.95%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 1.6 19
Operating Profit Margin (%) 34.99 72.14
Net Profit Margin (%) 2.82 8.95

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Asian Warehousing Ltd?
Asian Warehousing Ltd Return on Asset is 0.17%, which is below its 5-year historical median of 0.41%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Asian Warehousing Ltd?
Asian Warehousing Ltd Return on capital employed is 5.05% for FY-2025, which is below its 5-year historical median of 9.1%. 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 Asian Warehousing Ltd?
Asian Warehousing Ltd Return on equity is 1.84% for FY-2025, which is below its 5-year historical median of 4.61%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Asian Warehousing Ltd?
Asian Warehousing Ltd Cash conversion cycle is 54 days, in line with its 5-year historical median of 54 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.06 0.05
ROE (%) 1.84 4.61
ROCE (%) 5.05 9.1
Cash Conversion Cycle 54 days 54 days

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

Q.9 Debt to Equity ratio of Asian Warehousing Ltd?
Asian Warehousing Ltd Debt-to-Equity ratio is 2.12, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Asian Warehousing Ltd?
Asian Warehousing Ltd Debt to cash flow from operations is 7.12, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Asian Warehousing Ltd?

Q.1 Promoter shareholding and pledge status of Asian Warehousing Ltd?
Promoters hold 71.03% of the Asian Warehousing Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Asian Warehousing Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Asian Warehousing Ltd vs industry peers?
Asian Warehousing Ltd revenue CAGR is 0.87%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 30.7 -
Gross Profit Growth (%) -90.3 17.9
Operating Profit Growth (%) -35.7 16.4
Net Profit Growth (%) -60 17.3
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.06 0.52
ROE (%) 1.84 2.05
ROCE (%) 5.05 3.6
Cash Conversion Cycle (days) 53.81 46

Valuation & price assessment

Q.1 Stock return of Asian Warehousing Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -22.64% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -22.6%
Q.2 Valuation ratios of Asian Warehousing Ltd vs historical?
The current P/E ratio of 169.31 is higher than its historical median of 71.49, indicating that the stock is trading above 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 169.31 71.49 33.62
Price to Book 3.83 4.68 1.57
Price to Sales 5.04 7.62 2.21
EV to EBITDA 19.76 21.73 14.09

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