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Check Before You Invest : Cubex Tubings Ltd

BSE: 526027 NSE: CUBEXTUB ISIN: INE144D01012
  |   Sector:  Metals & Mining   |   Industry:  Metal - Non Ferrous

Snapshot

Q.1 Which industry/sub-sector does Cubex Tubings Ltd belong to?
Cubex Tubings Ltd belongs to the Metals & Mining sector, operating specifically within the Metal - Non Ferrous segment.
Q.2 Is Cubex Tubings Ltd a good quality company?
Cubex Tubings 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 Cubex Tubings Ltd undervalued or overvalued?
Cubex Tubings Ltd appears 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 17.47 21.43
Price to Book 1.56 1.20
Price to Sales 0.45 0.45
EV to EBITDA 11.46 11.84
Q.4 Is Cubex Tubings Ltd a good buy now?
Cubex Tubings Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 Cubex Tubings Ltd?
Cubex Tubings Ltd revenue growth is 21% for FY-2025, which is below its 5-year CAGR of 34.86%, indicating slower growth.

Q.2 Gross Profit margin of Cubex Tubings Ltd?
Cubex Tubings Ltd Gross profit margin which is the profit after deduction of direct costs, is 3% for FY-2025, which is above its 5-year median of 2.6%, indicating increasing margins.

Q.3 Operating Profit Margin of Cubex Tubings Ltd?
Cubex Tubings Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.63% for FY-2025, which is above its 5-year median of 3.12% indicating increasing margins.

Q.4 Net Profit Margin of Cubex Tubings Ltd?
Cubex Tubings Ltd Net Profit Margin is 2.49% for FY-2025, is above its 5-year median of 1.81%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 3 2.6
Operating Profit Margin (%) 3.63 3.12
Net Profit Margin (%) 2.49 1.81

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Cubex Tubings Ltd?
Cubex Tubings Ltd Return on Asset is 5.44%, which is above its 5-year historical median of 2.74%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Cubex Tubings Ltd?
Cubex Tubings Ltd Return on capital employed is 10.92% for FY-2025, which is above its 5-year historical median of 6.74%. 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 Cubex Tubings Ltd?
Cubex Tubings Ltd Return on equity is 9.19% for FY-2025, which is above its 5-year historical median of 4.18%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Cubex Tubings Ltd?
Cubex Tubings Ltd Cash conversion cycle is 62 days, below its 5-year historical median of 68 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) 2.56 2.31
ROE (%) 9.19 4.18
ROCE (%) 10.92 6.74
Cash Conversion Cycle 62 days 68 days

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

Q.9 Debt to Equity ratio of Cubex Tubings Ltd?
Cubex Tubings Ltd Debt-to-Equity ratio is 0.44, which is above the industry average of 0.39, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Cubex Tubings Ltd?
Cubex Tubings Ltd Debt to cash flow from operations is -43.11, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Cubex Tubings Ltd?

Q.1 Promoter shareholding and pledge status of Cubex Tubings Ltd?
Promoters hold 44.42% of the Cubex Tubings Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Cubex Tubings Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Cubex Tubings Ltd vs industry peers?
Cubex Tubings Ltd revenue CAGR is 34.86%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 21 -
Gross Profit Growth (%) 28.6 24.7
Operating Profit Growth (%) 42.9 15.9
Net Profit Growth (%) 75 22.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 2.56 2.38
ROE (%) 9.19 4.28
ROCE (%) 10.92 8.46
Cash Conversion Cycle (days) 62.49 51

Valuation & price assessment

Q.1 Stock return of Cubex Tubings Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 23.6% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
23.6% 26% 32.5% -1.4%
Q.2 Valuation ratios of Cubex Tubings Ltd vs historical?
The current P/E ratio of 17.47 is lower than its historical median of 21.43, 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 17.47 21.43 27.16
Price to Book 1.56 1.20 2.29
Price to Sales 0.45 0.45 0.62
EV to EBITDA 11.46 11.84 12.16

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