Check Before You Invest : Associated Ceramics Ltd

Snapshot

Q.1 Which industry/sub-sector does Associated Ceramics Ltd belong to?

Associated Ceramics Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Refractories segment.

Q.2 Is Associated Ceramics Ltd a good quality company?

Associated Ceramics Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Associated Ceramics Ltd undervalued or overvalued?

Associated Ceramics Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Associated Ceramics Ltd a good buy now?

Associated Ceramics 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 Associated Ceramics Ltd?

Associated Ceramics Ltd revenue growth is 3.4% for FY-2025, which is below its 5-year CAGR of 4.42%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Associated Ceramics Ltd?

Associated Ceramics Ltd Return on capital employed is 13.79% for FY-2025, which is below its 5-year historical median of 18.49%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Associated Ceramics Ltd?

Associated Ceramics Ltd Return on Asset is 4.63%, which is below its 5-year historical median of 11.31%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Associated Ceramics Ltd?

Associated Ceramics Ltd Return on equity is 9.69% for FY-2025, which is below its 5-year historical median of 17.72%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Associated Ceramics Ltd?

Associated Ceramics Ltd Cash conversion cycle is 83 days, below its 5-year historical median of 92 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.9	1.04
ROE	9.69	17.72
ROCE	13.79	18.49
Cash Conversion Cycle	83 days	92 days

Q.6 Gross Profit margin of Associated Ceramics Ltd?

Associated Ceramics Ltd Gross profit margin which is the profit after deduction of direct costs, is 16% for FY-2025, which is in line with its 5-year median of 16%, indicating stable margins.

Q.7 Operating Profit Margin of Associated Ceramics Ltd?

Associated Ceramics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.67% for FY-2025, which is in line with its 5-year median of 13.94% indicating stable margins.

Q.8 Net Profit Margin of Associated Ceramics Ltd?

Associated Ceramics Ltd Net Profit Margin is 5.15% for FY-2025, is below with its 5-year median of 8.2%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	16	16
Operating Profit Margin	13.67	13.94
Net Profit Margin	5.15	8.2

Q.9 Debt to Equity ratio of Associated Ceramics Ltd?

Associated Ceramics Ltd Debt-to-Equity ratio is 0.06, which is lower with the industry average of 0.16, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Associated Ceramics Ltd?

Associated Ceramics Ltd Debt to cash flow from operations is 0.27, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Associated Ceramics Ltd?

Promoters hold 55.34% of the Associated Ceramics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Associated Ceramics Ltd vs industry peers?

Associated Ceramics Ltd revenue CAGR is 4.42%, compared to the industry median CAGR of 6.93%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	3.4	6.9
Gross Profit Growth	27.3	12.4
Operating Profit Growth	16	12.3
Net Profit Growth	151.2	14.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.9	0.87
ROE	9.69	16.04
ROCE	13.79	14.66
Cash Conversion Cycle (days)	83.12	97

Valuation & price assessment

Q.1 Stock return of Associated Ceramics Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 98.45% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	98.5%	-16.9%

Q.3 Valuation ratios of Associated Ceramics Ltd vs historical?

The current P/E is lower 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	14.63	24.85	34.29
Price to Book	1.44	1.97	3.59
Price to Sales	0.79	1.08	3.87
EV to EBITDA	4.91	7.22	15.61

Check more companies

1. Vesuvius India

2. RHI Magnesita

3. Raghav Productivity

4. IFGL Refractories

5. Monolithisch India

6. Foseco Crucible Ind

7. Orient Ceratech

8. Refractory Shapes

9. Nilachal Refactories

10. Lerthai Finance

Check trending companies

1. Force Motors Ltd.

2. KEI Industries Ltd.

3. Aadhar Housing Finance Ltd.

4. State Bank Of India

5. Power Finance Corporation Ltd.