Check Before You Invest : Bonlon Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does Bonlon Industries Ltd belong to?

Bonlon Industries Ltd belongs to the Metals & Mining sector, operating specifically within the Metal - Non Ferrous segment.

Q.2 Is Bonlon Industries Ltd a good quality company?

Bonlon Industries Ltd is a quality company, based on a 9-year financial track record.

Q.3 Is Bonlon Industries Ltd undervalued or overvalued?

Bonlon Industries Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Bonlon Industries Ltd a good buy now?

Bonlon Industries 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 Bonlon Industries Ltd?

Bonlon Industries Ltd revenue growth is 44.4% for FY-2025, which is above its 5-year CAGR of 20.67%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Bonlon Industries Ltd?

Bonlon Industries Ltd Return on capital employed is 5.04% for FY-2025, which is above its 5-year historical median of 4.57%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Bonlon Industries Ltd?

Bonlon Industries Ltd Return on Asset is 2.07%, which is above its 5-year historical median of 1.87%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Bonlon Industries Ltd?

Bonlon Industries Ltd Return on equity is 3.35% for FY-2025, which is above its 5-year historical median of 2.95%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Bonlon Industries Ltd?

Bonlon Industries Ltd Cash conversion cycle is 30 days, in line with its 5-year historical median of 30 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	5.18	3.67
ROE	3.35	2.95
ROCE	5.04	4.57
Cash Conversion Cycle	30 days	30 days

Q.6 Gross Profit margin of Bonlon Industries Ltd?

Bonlon Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 0.8% for FY-2025, which is below its 5-year median of 0.9%, indicating decreasing margins.

Q.7 Operating Profit Margin of Bonlon Industries Ltd?

Bonlon Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.11% for FY-2025, which is above its 5-year median of 0.8% indicating increasing margins.

Q.8 Net Profit Margin of Bonlon Industries Ltd?

Bonlon Industries Ltd Net Profit Margin is 0.43% for FY-2025, is below with its 5-year median of 0.54%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	0.8	0.9
Operating Profit Margin	1.11	0.8
Net Profit Margin	0.43	0.54

Q.9 Debt to Equity ratio of Bonlon Industries Ltd?

Bonlon Industries Ltd Debt-to-Equity ratio is 0.38, which is above with the industry average of 0.25, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Bonlon Industries Ltd?

Bonlon Industries Ltd Debt to cash flow from operations is 0.84, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Bonlon Industries Ltd?

Promoters hold 71.21% of the Bonlon Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Bonlon Industries Ltd vs industry peers?

Bonlon Industries Ltd revenue CAGR is 20.67%, compared to the industry median CAGR of 16.84%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	44.4	16.8
Gross Profit Growth	6.5	24.7
Operating Profit Growth	9.9	19.2
Net Profit Growth	15.5	15

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	5.18	2.44
ROE	3.35	5.47
ROCE	5.04	8.46
Cash Conversion Cycle (days)	30.35	56

Valuation & price assessment

Q.1 Stock return of Bonlon Industries Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 21.67% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	21.7%	9.3%	46%

Q.3 Valuation ratios of Bonlon Industries 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	34.55	22.51	26.99
Price to Book	0.94	0.65	2.29
Price to Sales	0.12	0.11	0.62
EV to EBITDA	15.62	12.48	12.14

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