SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Crimson Metal Engineering Company Ltd

BSE: 526977 NSE: ISIN: INE318P01016
  |   Sector:  Metals & Mining   |   Industry:  Steel & Iron Products

Snapshot

Q.1 Which industry/sub-sector does Crimson Metal Engineering Company Ltd belong to?
Crimson Metal Engineering Company Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.
Q.2 Is Crimson Metal Engineering Company Ltd a good quality company?
Crimson Metal Engineering Company 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 Crimson Metal Engineering Company Ltd undervalued or overvalued?
Crimson Metal Engineering Company Ltd appears Somewhat overvalued, as its key valuation ratios are higher 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 190.89 10.94
Price to Book 3.75 0.66
Price to Sales 2.4 0.48
EV to EBITDA 8.77 7.03
Q.4 Is Crimson Metal Engineering Company Ltd a good buy now?
Crimson Metal Engineering Company 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 Crimson Metal Engineering Company Ltd?
Crimson Metal Engineering Company Ltd revenue growth is 15.6% for FY-2025, which is above its 5-year CAGR of 5.71%, indicating faster growth.

Q.2 Gross Profit margin of Crimson Metal Engineering Company Ltd?
Crimson Metal Engineering Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 23.5% for FY-2025, which is above its 5-year median of 22.1%, indicating increasing margins.

Q.3 Operating Profit Margin of Crimson Metal Engineering Company Ltd?
Crimson Metal Engineering Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 44.28% for FY-2025, which is below its 5-year median of 48.36% indicating decreasing margins.

Q.4 Net Profit Margin of Crimson Metal Engineering Company Ltd?
Crimson Metal Engineering Company Ltd Net Profit Margin is 1.41% for FY-2025, is below its 5-year median of 3.98%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 23.5 22.1
Operating Profit Margin (%) 44.28 48.36
Net Profit Margin (%) 1.41 3.98

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Crimson Metal Engineering Company Ltd?
Crimson Metal Engineering Company Ltd Return on Asset is 0.41%, which is below its 5-year historical median of 0.94%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Crimson Metal Engineering Company Ltd?
Crimson Metal Engineering Company Ltd Return on capital employed is 8.16% for FY-2025, which is in line with its 5-year historical median of 8.16%. 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 Crimson Metal Engineering Company Ltd?
Crimson Metal Engineering Company Ltd Return on equity is 2.44% for FY-2025, which is below its 5-year historical median of 4.9%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Crimson Metal Engineering Company Ltd?
Crimson Metal Engineering Company Ltd Cash conversion cycle is -5 days, below its 5-year historical median of 224 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) 0.29 0.26
ROE (%) 2.44 4.9
ROCE (%) 8.16 8.16
Cash Conversion Cycle -5 days 224 days

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

Q.9 Debt to Equity ratio of Crimson Metal Engineering Company Ltd?
Crimson Metal Engineering Company Ltd Debt-to-Equity ratio is 4.37, which is above the industry average of 0.31, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Crimson Metal Engineering Company Ltd?
Crimson Metal Engineering Company Ltd Debt to cash flow from operations is -68.38, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Crimson Metal Engineering Company Ltd?

Q.1 Promoter shareholding and pledge status of Crimson Metal Engineering Company Ltd?
Promoters hold 43.48% of the Crimson Metal Engineering Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Crimson Metal Engineering Company Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Crimson Metal Engineering Company Ltd vs industry peers?
Crimson Metal Engineering Company Ltd revenue CAGR is 5.71%, compared to the industry median CAGR of 7.56%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 15.6 7.6
Gross Profit Growth (%) 12.5 19.3
Operating Profit Growth (%) 11.9 13.8
Net Profit Growth (%) 0 24.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.29 1.27
ROE (%) 2.44 8.04
ROCE (%) 8.16 11.28
Cash Conversion Cycle (days) -5.28 72

Valuation & price assessment

Q.1 Stock return of Crimson Metal Engineering Company Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 20.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
20.5% 42.9% 72.8% 367.4%
Q.2 Valuation ratios of Crimson Metal Engineering Company Ltd vs historical?
The current P/E ratio of 190.89 is higher than its historical median of 10.94, 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 190.89 10.94 17.36
Price to Book 3.75 0.66 1.63
Price to Sales 2.4 0.48 0.74
EV to EBITDA 8.77 7.03 10.05

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through: