Check Before You Invest : Citichem India Ltd

BSE: 544324 NSE: ISIN: INE0A8401016

| Sector: Miscellaneous | Industry: Trading

Snapshot

Q.1 Which industry/sub-sector does Citichem India Ltd belong to?

Citichem India Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.

Q.2 Is Citichem India Ltd a good quality company?

Citichem India Ltd is a quality company, based on a 6-year financial track record.

Q.3 Is Citichem India Ltd undervalued or overvalued?

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

Q.4 Is Citichem India Ltd a good buy now?

Citichem 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

Q.1 Revenue growth of Citichem India Ltd?

Citichem India Ltd revenue growth is 177.3% for FY-2025, which is above its 5-year CAGR of -15.65%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Citichem India Ltd?

Citichem India Ltd Return on capital employed is 11.55% for FY-2025, which is in line with its 5-year historical median of 11.55%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Citichem India Ltd?

Citichem India Ltd Return on Asset is 1.76%, which is above its 5-year historical median of 0.42%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Citichem India Ltd?

Citichem India Ltd Return on equity is 8.9% for FY-2025, which is in line with its 5-year historical median of 8.9%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Citichem India Ltd?

Citichem India Ltd Cash conversion cycle is -579 days, below its 5-year historical median of -4 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	0.78	0.78
ROE	8.9	8.9
ROCE	11.55	11.55
Cash Conversion Cycle	-579 days	-4 days

Q.6 Gross Profit margin of Citichem India Ltd?

Citichem India Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.1% for FY-2025, which is above its 5-year median of 2.5%, indicating increasing margins.

Q.7 Operating Profit Margin of Citichem India Ltd?

Citichem India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.97% for FY-2025, which is above its 5-year median of 2.79% indicating increasing margins.

Q.8 Net Profit Margin of Citichem India Ltd?

Citichem India Ltd Net Profit Margin is 2.26% for FY-2025, is above with its 5-year median of 1.73%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	3.1	2.5
Operating Profit Margin	2.97	2.79
Net Profit Margin	2.26	1.73

Q.9 Debt to Equity ratio of Citichem India Ltd?

Citichem India Ltd Debt-to-Equity ratio is 0.27, which is above with the industry average of 0.17, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Citichem India Ltd?

Citichem India Ltd Debt to cash flow from operations is -0.47, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Citichem India Ltd?

Promoters hold 61.54% of the Citichem India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Citichem India Ltd vs industry peers?

Citichem India Ltd revenue CAGR is -15.65%, compared to the industry median CAGR of 12.68%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	177.3	12.7
Gross Profit Growth	-3.5	17.4
Operating Profit Growth	-9.5	16.7
Net Profit Growth	-11.5	17.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.78	0.81
ROE	8.9	2.6
ROCE	11.55	3.8
Cash Conversion Cycle (days)	-578.95	61

Valuation & price assessment

Q.1 Stock return of Citichem India Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -36.69% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-36.7%

Q.3 Valuation ratios of Citichem India Ltd vs historical?

The current P/E is lower 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	9.75	14.94	33.44
Price to Book	0.6	0.91	1.58
Price to Sales	0.22	0.92	2.20
EV to EBITDA	6.53	9.60	14.05

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