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Check Before You Invest : CJ Gelatine Products Ltd

BSE: 507515 NSE: ISIN: INE557D01015
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Chemicals

Snapshot

Q.1 Which industry/sub-sector does CJ Gelatine Products Ltd belong to?
CJ Gelatine Products Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.
Q.2 Is CJ Gelatine Products Ltd a good quality company?
CJ Gelatine Products Ltd is a quality company, based on a 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 CJ Gelatine Products Ltd undervalued or overvalued?
CJ Gelatine Products Ltd appears 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 5-year
Historic Median
Price to Earnings 159.09 25.53
Price to Book 4.01 3.58
Price to Sales 0.22 0.26
EV to EBITDA 14.38 14.03
Q.4 Is CJ Gelatine Products Ltd a good buy now?
CJ Gelatine Products 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.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of CJ Gelatine Products Ltd?
CJ Gelatine Products Ltd revenue growth is 1% for FY-2025, which is below its 5-year CAGR of 7.86%, indicating slower growth.

Q.2 Gross Profit margin of CJ Gelatine Products Ltd?
CJ Gelatine Products Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.9% for FY-2025, which is below its 5-year median of 2.1%, indicating decreasing margins.

Q.3 Operating Profit Margin of CJ Gelatine Products Ltd?
CJ Gelatine Products Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.09% for FY-2025, which is below its 5-year median of 4.68% indicating decreasing margins.

Q.4 Net Profit Margin of CJ Gelatine Products Ltd?
CJ Gelatine Products Ltd Net Profit Margin is 0.19% for FY-2025, is below its 5-year median of 0.62%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 1.9 2.1
Operating Profit Margin (%) 4.09 4.68
Net Profit Margin (%) 0.19 0.62

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of CJ Gelatine Products Ltd?
CJ Gelatine Products Ltd Return on Asset is 0.25%, which is below its 5-year historical median of 0.65%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of CJ Gelatine Products Ltd?
CJ Gelatine Products Ltd Return on capital employed is 6.46% for FY-2025, which is below its 5-year historical median of 7.3%. 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 CJ Gelatine Products Ltd?
CJ Gelatine Products Ltd Return on equity is 3.57% for FY-2025, which is below its 5-year historical median of 5.66%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of CJ Gelatine Products Ltd?
CJ Gelatine Products Ltd Cash conversion cycle is 184 days, in line with its 5-year historical median of 182 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 (x) 1.28 1.21
ROE (%) 3.57 5.66
ROCE (%) 6.46 7.3
Cash Conversion Cycle 184 days 182 days

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

Q.9 Debt to Equity ratio of CJ Gelatine Products Ltd?
CJ Gelatine Products Ltd Debt-to-Equity ratio is 9.32, which is above the industry average of 0.13, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of CJ Gelatine Products Ltd?
CJ Gelatine Products Ltd Debt to cash flow from operations is 45.71, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of CJ Gelatine Products Ltd?

Q.1 Promoter shareholding and pledge status of CJ Gelatine Products Ltd?
Promoters hold 61.37% of the CJ Gelatine Products Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does CJ Gelatine Products Ltd performance compare with that of its Peers?

Q.1 Revenue growth of CJ Gelatine Products Ltd vs industry peers?
CJ Gelatine Products Ltd revenue CAGR is 7.86%, compared to the industry median CAGR of 7.53%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 1 7.5
Gross Profit Growth (%) -1.3 12.1
Operating Profit Growth (%) -11.5 11.7
Net Profit Growth (%) 0 9.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.28 0.93
ROE (%) 3.57 10.17
ROCE (%) 6.46 12.96
Cash Conversion Cycle (days) 184.49 62

Valuation & price assessment

Q.1 Stock return of CJ Gelatine Products Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 9.7% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
9.7% -4.4% -7.1% 16.3%
Q.2 Valuation ratios of CJ Gelatine Products Ltd vs historical?
The current P/E ratio of 159.09 is higher than its historical median of 25.53, indicating that the stock is trading above 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 159.09 25.53 28.17
Price to Book 4.01 3.58 2.22
Price to Sales 0.22 0.26 1.93
EV to EBITDA 14.38 14.03 14.20

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