MoneyWorks4Me

Check Before You Invest : Caprihans India Ltd

BSE: 509486 NSE: CAPRIHANS ISIN: INE479A01018
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Plastic Products

Snapshot

Q.1 Which industry/sub-sector does Caprihans India Ltd belong to?
Caprihans India Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.
Q.2 Is Caprihans India Ltd a good quality company?
Caprihans India Ltd is a weak quality company, based on a inconsistent 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 Caprihans India Ltd undervalued or overvalued?
Caprihans India Ltd appears Somewhat 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 0-year
Historic Median
Price to Earnings - 59.93
Price to Book -1.83 10.73
Price to Sales 0.28 5.43
EV to EBITDA 8.96 32.95
Q.4 Is Caprihans India Ltd a good buy now?
Caprihans India 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.

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

Q.1 Debt to Equity ratio of Caprihans India Ltd?
Caprihans India Ltd Debt-to-Equity ratio is -4.81, which is lower the industry average of , indicating lower debt levels in the industry.

Q.2 Debt to cash flow from operations of Caprihans India Ltd?
Caprihans India Ltd Debt to cash flow from operations is 7.58, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Caprihans India Ltd?

Q.1 Promoter shareholding and pledge status of Caprihans India Ltd?
Promoters hold 55.99% of the Caprihans India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Caprihans India Ltd vs industry peers?
Caprihans India Ltd revenue CAGR is %, compared to the industry median CAGR of 11.75%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 0-year
Industry Median
Revenue Growth (%) - 11.8
Gross Profit Growth (%) 0 9.5
Operating Profit Growth (%) -18.2 9.1
Net Profit Growth (%) 0 9.4
Operating Efficiency
Current Level 0-year
Industry Median
Asset Turnover (x) 0.57 1.19
ROE (%) - 20.53
ROCE (%) - 27.46
Cash Conversion Cycle (days) 75.26 37

Valuation & price assessment

Q.1 Stock return of Caprihans India Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 2.4% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
2.4% -1.9% -20.3% -9.1%
Q.2 Valuation ratios of Caprihans India Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 59.93, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 0-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings - 59.93 -
Price to Book -1.83 10.73 -
Price to Sales 0.28 5.43 -
EV to EBITDA 8.96 32.95 -

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