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Check Before You Invest : Devson Catalyst Ltd

BSE: 544823 NSE: ISIN: INE2KRP01017
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Chemicals

Snapshot

Q.1 Which industry/sub-sector does Devson Catalyst Ltd belong to?
Devson Catalyst Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.
Q.2 Is Devson Catalyst Ltd a good quality company?
Devson Catalyst Ltd is a average quality company, based on a somewhat consistent 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 Devson Catalyst Ltd undervalued or overvalued?
Devson Catalyst 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 3-year
Historic Median
Price to Earnings 22.79 22.98
Price to Book 3.92 3.96
Price to Sales 5.12 5.16
EV to EBITDA 16.02 16.15
Q.4 Is Devson Catalyst Ltd a good buy now?
Devson Catalyst 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 Devson Catalyst Ltd?
Devson Catalyst Ltd revenue growth is 4.9% for FY-2026, which is below its 3-year CAGR of 19.69%, indicating slower growth.

Q.2 Gross Profit margin of Devson Catalyst Ltd?
Devson Catalyst Ltd Gross profit margin which is the profit after deduction of direct costs, is 31.2% for FY-2026, which is above its 3-year median of 20.5%, indicating increasing margins.

Q.3 Operating Profit Margin of Devson Catalyst Ltd?
Devson Catalyst Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 30.06% for FY-2026, which is above its 3-year median of 20.81% indicating increasing margins.

Q.4 Net Profit Margin of Devson Catalyst Ltd?
Devson Catalyst Ltd Net Profit Margin is 22.45% for FY-2026, is above its 3-year median of 14.42%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 31.2 20.5
Operating Profit Margin (%) 30.06 20.81
Net Profit Margin (%) 22.45 14.42

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Devson Catalyst Ltd?
Devson Catalyst Ltd Return on Asset is 36.29%, which is above its 3-year historical median of 31.4%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Devson Catalyst Ltd?
Devson Catalyst Ltd Return on capital employed is 57.81% for FY-2026, which is above its 3-year historical median of 51.95%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Devson Catalyst Ltd?
Devson Catalyst Ltd Return on equity is 45.97% for FY-2026, which is in line with its 3-year historical median of 44.76%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Devson Catalyst Ltd?
Devson Catalyst Ltd Cash conversion cycle is 107 days, above its 3-year historical median of 71 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 1.62 2.18
ROE (%) 45.97 44.76
ROCE (%) 57.81 51.95
Cash Conversion Cycle 107 days 71 days

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

Q.9 Debt to Equity ratio of Devson Catalyst Ltd?
Devson Catalyst Ltd Debt-to-Equity ratio is 0.07, 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 Devson Catalyst Ltd?
Devson Catalyst Ltd Debt to cash flow from operations is 0.55, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Devson Catalyst Ltd?

Q.1 Promoter shareholding and pledge status of Devson Catalyst Ltd?
Promoters hold 73.59% of the Devson Catalyst Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Devson Catalyst Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Devson Catalyst Ltd vs industry peers?
Devson Catalyst Ltd revenue CAGR is 19.69%, compared to the industry median CAGR of 3.19%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 4.9 3.2
Gross Profit Growth (%) 54.6 6.3
Operating Profit Growth (%) 54.6 4.5
Net Profit Growth (%) 62.5 2.2
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.62 0.93
ROE (%) 45.97 7.49
ROCE (%) 57.81 10.12
Cash Conversion Cycle (days) 106.71 61

Valuation & price assessment

Q.1 Stock return of Devson Catalyst Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Devson Catalyst Ltd vs historical?
The current P/E ratio of 22.79 is in line with than its historical median of 22.98, indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 22.79 22.98 32.16
Price to Book 3.92 3.96 2.28
Price to Sales 5.12 5.16 1.89
EV to EBITDA 16.02 16.15 15.86

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