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Check Before You Invest : Chembond Material Technologies Ltd

BSE: 530871 NSE: CHEMBOND ISIN: INE995D01025
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Chemicals

Snapshot

Q.1 Which industry/sub-sector does Chembond Material Technologies Ltd belong to?
Chembond Material Technologies Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.
Q.2 Is Chembond Material Technologies Ltd a good quality company?
Chembond Material Technologies 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 Chembond Material Technologies Ltd undervalued or overvalued?
Chembond Material Technologies 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 31.5 74.68
Price to Book 1.44 1.48
Price to Sales 1.16 7.04
EV to EBITDA 15.38 47.64
Q.4 Is Chembond Material Technologies Ltd a good buy now?
Chembond Material Technologies Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Chembond Material Technologies Ltd?
Chembond Material Technologies Ltd revenue growth is 11.7% for FY-2025, which is below its 5-year CAGR of 23.94%, indicating slower growth.

Q.2 Gross Profit margin of Chembond Material Technologies Ltd?
Chembond Material Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.8% for FY-2025, which is below its 5-year median of 14.6%, indicating decreasing margins.

Q.3 Operating Profit Margin of Chembond Material Technologies Ltd?
Chembond Material Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.6% for FY-2025, which is in line with its 5-year median of 7.6% indicating stable margins.

Q.4 Net Profit Margin of Chembond Material Technologies Ltd?
Chembond Material Technologies Ltd Net Profit Margin is 10.06% for FY-2025, is in line with its 5-year median of 10.06%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 11.8 14.6
Operating Profit Margin (%) 7.6 7.6
Net Profit Margin (%) 10.06 10.06

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Chembond Material Technologies Ltd?
Chembond Material Technologies Ltd Return on Asset is 8.91%, which is above its 5-year historical median of 3.94%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Chembond Material Technologies Ltd?
Chembond Material Technologies Ltd Return on capital employed is 12.19% for FY-2025, which is above its 5-year historical median of 5.42%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Chembond Material Technologies Ltd?
Chembond Material Technologies Ltd Return on equity is 10.92% for FY-2025, which is above its 5-year historical median of 4.13%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Chembond Material Technologies Ltd?
Chembond Material Technologies Ltd Cash conversion cycle is 53 days, below its 5-year historical median of 120 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.89 0.2
ROE (%) 10.92 4.13
ROCE (%) 12.19 5.42
Cash Conversion Cycle 53 days 120 days

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

Q.9 Debt to Equity ratio of Chembond Material Technologies Ltd?
Chembond Material Technologies Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.13, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Chembond Material Technologies Ltd?
Chembond Material Technologies Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Chembond Material Technologies Ltd?

Q.1 Promoter shareholding and pledge status of Chembond Material Technologies Ltd?
Promoters hold 68.08% of the Chembond Material Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Chembond Material Technologies Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Chembond Material Technologies Ltd vs industry peers?
Chembond Material Technologies Ltd revenue CAGR is 23.94%, compared to the industry median CAGR of 7.53%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 11.7 7.5
Gross Profit Growth (%) -9.1 12.1
Operating Profit Growth (%) 44.4 11.7
Net Profit Growth (%) 21.4 9.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.89 0.93
ROE (%) 10.92 10.17
ROCE (%) 12.19 12.96
Cash Conversion Cycle (days) 52.59 62

Valuation & price assessment

Q.1 Stock return of Chembond Material Technologies Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -2.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-2.1% -2% -19% -33.2%
Q.2 Valuation ratios of Chembond Material Technologies Ltd vs historical?
The current P/E ratio of 31.5 is lower than its historical median of 74.68, 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 31.5 74.68 28.17
Price to Book 1.44 1.48 2.22
Price to Sales 1.16 7.04 1.93
EV to EBITDA 15.38 47.64 14.20

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