Check Before You Invest : Asian Star Company Ltd

Snapshot

Q.1 Which industry/sub-sector does Asian Star Company Ltd belong to?

Asian Star Company Ltd belongs to the Consumer Durables sector, operating specifically within the Diamond & Jewellery segment.

Q.2 Is Asian Star Company Ltd a good quality company?

Asian Star Company Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Asian Star Company Ltd undervalued or overvalued?

Asian Star Company Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Asian Star Company Ltd a good buy now?

Asian Star Company 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 Asian Star Company Ltd?

Asian Star Company Ltd revenue growth is -13.4% for FY-2025, which is below its 5-year CAGR of 1.56%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Asian Star Company Ltd?

Asian Star Company Ltd Return on capital employed is 5.21% for FY-2025, which is below its 5-year historical median of 5.93%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Asian Star Company Ltd?

Asian Star Company Ltd Return on Asset is 1.91%, which is below its 5-year historical median of 3.14%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Asian Star Company Ltd?

Asian Star Company Ltd Return on equity is 3.83% for FY-2025, which is below its 5-year historical median of 6.62%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Asian Star Company Ltd?

Asian Star Company Ltd Cash conversion cycle is 167 days, above its 5-year historical median of 150 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	1.15	1.29
ROE	3.83	6.62
ROCE	5.21	5.93
Cash Conversion Cycle	167 days	150 days

Q.6 Gross Profit margin of Asian Star Company Ltd?

Asian Star Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.7% for FY-2025, which is below its 5-year median of 3.1%, indicating decreasing margins.

Q.7 Operating Profit Margin of Asian Star Company Ltd?

Asian Star Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.16% for FY-2025, which is in line with its 5-year median of 3.16% indicating stable margins.

Q.8 Net Profit Margin of Asian Star Company Ltd?

Asian Star Company Ltd Net Profit Margin is 1.66% for FY-2025, is below with its 5-year median of 1.92%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	2.7	3.1
Operating Profit Margin	3.16	3.16
Net Profit Margin	1.66	1.92

Q.9 Debt to Equity ratio of Asian Star Company Ltd?

Asian Star Company Ltd Debt-to-Equity ratio is 0.51, which is lower with the industry average of 0.58, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Asian Star Company Ltd?

Asian Star Company Ltd Debt to cash flow from operations is 3.22, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Asian Star Company Ltd?

Promoters hold 74.66% of the Asian Star Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Asian Star Company Ltd vs industry peers?

Asian Star Company Ltd revenue CAGR is 1.56%, compared to the industry median CAGR of 11.19%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-13.4	11.2
Gross Profit Growth	-34	14.9
Operating Profit Growth	-26.3	17.5
Net Profit Growth	-40.9	13.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.15	1.44
ROE	3.83	7.96
ROCE	5.21	8.31
Cash Conversion Cycle (days)	166.98	132

Valuation & price assessment

Q.1 Stock return of Asian Star Company Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -0.1% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-0.1%	0.3%	-1%	-7.4%

Q.3 Valuation ratios of Asian Star Company 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	36.49	20.97	27.79
Price to Book	1.08	1.30	1.96
Price to Sales	0.5	0.47	1.27
EV to EBITDA	18.68	15.36	16.05

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