Check Before You Invest : Caprolactam Chemicals Ltd

BSE: 507486 NSE: ISIN: INE470N01010

| Sector: Chemicals & Fertilizers | Industry: Chemicals

Snapshot

Q.1 Which industry/sub-sector does Caprolactam Chemicals Ltd belong to?

Caprolactam Chemicals Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is Caprolactam Chemicals Ltd a good quality company?

Caprolactam Chemicals Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Caprolactam Chemicals Ltd undervalued or overvalued?

Caprolactam Chemicals Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Caprolactam Chemicals Ltd a good buy now?

Caprolactam Chemicals 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 Caprolactam Chemicals Ltd?

Caprolactam Chemicals Ltd revenue growth is -3.2% for FY-2025, which is below its 5-year CAGR of 0.7%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Caprolactam Chemicals Ltd?

Caprolactam Chemicals Ltd Return on capital employed is -0.44% for FY-2025, which is below its 5-year historical median of 6.87%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Caprolactam Chemicals Ltd?

Caprolactam Chemicals Ltd Return on Asset is -5.46%, which is below its 5-year historical median of 1.7%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Caprolactam Chemicals Ltd?

Caprolactam Chemicals Ltd Return on equity is -13.66% for FY-2025, which is below its 5-year historical median of 3.63%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Caprolactam Chemicals Ltd?

Caprolactam Chemicals Ltd Cash conversion cycle is 89 days, above its 5-year historical median of 15 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	0.52	0.6
ROE	-13.66	3.63
ROCE	-0.44	6.87
Cash Conversion Cycle	89 days	15 days

Q.6 Gross Profit margin of Caprolactam Chemicals Ltd?

Caprolactam Chemicals Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.4% for FY-2025, which is below its 5-year median of 26.7%, indicating decreasing margins.

Q.7 Operating Profit Margin of Caprolactam Chemicals Ltd?

Caprolactam Chemicals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 22.61% for FY-2025, which is below its 5-year median of 31.23% indicating decreasing margins.

Q.8 Net Profit Margin of Caprolactam Chemicals Ltd?

Caprolactam Chemicals Ltd Net Profit Margin is -10.52% for FY-2025, is below with its 5-year median of 2.84%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	13.4	26.7
Operating Profit Margin	22.61	31.23
Net Profit Margin	-10.52	2.84

Q.9 Debt to Equity ratio of Caprolactam Chemicals Ltd?

Caprolactam Chemicals Ltd Debt-to-Equity ratio is 1.80, which is above with the industry average of 0.26, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Caprolactam Chemicals Ltd?

Caprolactam Chemicals Ltd Debt to cash flow from operations is -14.01, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Caprolactam Chemicals Ltd?

Promoters hold 54.50% of the Caprolactam Chemicals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Caprolactam Chemicals Ltd vs industry peers?

Caprolactam Chemicals Ltd revenue CAGR is 0.70%, compared to the industry median CAGR of 9.62%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-3.2	9.6
Gross Profit Growth	-51.4	14.3
Operating Profit Growth	-30	12
Net Profit Growth	-455	12.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.52	0.97
ROE	-13.66	10.68
ROCE	-0.44	13.26
Cash Conversion Cycle (days)	89.27	63

Valuation & price assessment

Q.1 Stock return of Caprolactam Chemicals Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 16.6% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	16.6%	9.6%	-10.1%	18.6%

Q.3 Valuation ratios of Caprolactam Chemicals 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	49.52	46.10	27.93
Price to Book	4.07	5.14	2.22
Price to Sales	2.57	3.71	1.93
EV to EBITDA	10.56	13.34	14.18

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