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Check Before You Invest : Beardsell Ltd

BSE: 539447 NSE: BEARDSELL ISIN: INE520H01022
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Plastic Products

Snapshot

Q.1 Which industry/sub-sector does Beardsell Ltd belong to?
Beardsell Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.
Q.2 Is Beardsell Ltd a good quality company?
Beardsell 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 Beardsell Ltd undervalued or overvalued?
Beardsell Ltd appears Fair, as its key valuation ratios are in line with 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 10.85 15.57
Price to Book 1.08 1.55
Price to Sales 0.36 0.46
EV to EBITDA 4.89 6.72
Q.4 Is Beardsell Ltd a good buy now?
Beardsell 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 Beardsell Ltd?
Beardsell Ltd revenue growth is 8.2% for FY-2025, which is below its 5-year CAGR of 12.51%, indicating slower growth.

Q.2 Gross Profit margin of Beardsell Ltd?
Beardsell Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.5% for FY-2025, which is in line with its 5-year median of 7.4%, indicating stable margins.

Q.3 Operating Profit Margin of Beardsell Ltd?
Beardsell Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.98% for FY-2025, which is in line with its 5-year median of 7.81% indicating stable margins.

Q.4 Net Profit Margin of Beardsell Ltd?
Beardsell Ltd Net Profit Margin is 3.82% for FY-2025, is above its 5-year median of 3.43%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 7.5 7.4
Operating Profit Margin (%) 7.98 7.81
Net Profit Margin (%) 3.82 3.43

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Beardsell Ltd?
Beardsell Ltd Return on Asset is 6.11%, which is above its 5-year historical median of 5.52%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Beardsell Ltd?
Beardsell Ltd Return on capital employed is 15.63% for FY-2025, which is in line with its 5-year historical median of 15.63%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Beardsell Ltd?
Beardsell Ltd Return on equity is 12.59% for FY-2025, which is in line with its 5-year historical median of 12.19%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Beardsell Ltd?
Beardsell Ltd Cash conversion cycle is 54 days, above its 5-year historical median of 46 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 (x) 1.6 1.6
ROE (%) 12.59 12.19
ROCE (%) 15.63 15.63
Cash Conversion Cycle 54 days 46 days

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

Q.9 Debt to Equity ratio of Beardsell Ltd?
Beardsell Ltd Debt-to-Equity ratio is 0.30, which is above the industry average of 0.25, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Beardsell Ltd?
Beardsell Ltd Debt to cash flow from operations is 1.74, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Beardsell Ltd?

Q.1 Promoter shareholding and pledge status of Beardsell Ltd?
Promoters hold 52.68% of the Beardsell Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Beardsell Ltd vs industry peers?
Beardsell Ltd revenue CAGR is 12.51%, compared to the industry median CAGR of 4.71%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 8.2 4.7
Gross Profit Growth (%) 4.2 14.3
Operating Profit Growth (%) 10.7 10.1
Net Profit Growth (%) 20.7 18.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.6 1.06
ROE (%) 12.59 5.91
ROCE (%) 15.63 8.75
Cash Conversion Cycle (days) 53.63 77

Valuation & price assessment

Q.1 Stock return of Beardsell Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 7% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
7% 26.1% 17.9% 1.9%
Q.2 Valuation ratios of Beardsell Ltd vs historical?
The current P/E ratio of 10.85 is lower than its historical median of 15.57, indicating that the stock is trading below 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 10.85 15.57 22.05
Price to Book 1.08 1.55 1.89
Price to Sales 0.36 0.46 1.33
EV to EBITDA 4.89 6.72 10.86

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