Check Before You Invest : Eastern Treads Ltd

Snapshot

Q.1 Which industry/sub-sector does Eastern Treads Ltd belong to?

Eastern Treads Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Rubber Products segment.

Q.2 Is Eastern Treads Ltd a good quality company?

Eastern Treads Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Eastern Treads Ltd undervalued or overvalued?

Eastern Treads Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Eastern Treads Ltd a good buy now?

Eastern Treads 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 Eastern Treads Ltd?

Eastern Treads Ltd revenue growth is 1.2% for FY-2025, which is above its 5-year CAGR of -4.9%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Eastern Treads Ltd?

Eastern Treads Ltd Return on capital employed is -7.96% for FY-2025, which is in line with its 5-year historical median of -7.96%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Eastern Treads Ltd?

Eastern Treads Ltd Return on Asset is -8.78%, which is in line with its 5-year historical median of -8.78%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Eastern Treads Ltd?

Eastern Treads Ltd Return on equity is 0% for FY-2025, which is above its 5-year historical median of -19.47%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Eastern Treads Ltd?

Eastern Treads Ltd Cash conversion cycle is 53 days, below its 5-year historical median of 93 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	1.78	1.53
ROE	-	-19.47
ROCE	-7.96	-7.96
Cash Conversion Cycle	53 days	93 days

Q.6 Gross Profit margin of Eastern Treads Ltd?

Eastern Treads Ltd Gross profit margin which is the profit after deduction of direct costs, is -4.8% for FY-2025, which is in line with its 5-year median of -4.8%, indicating stable margins.

Q.7 Operating Profit Margin of Eastern Treads Ltd?

Eastern Treads Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -3.6% for FY-2025, which is in line with its 5-year median of -3.6% indicating stable margins.

Q.8 Net Profit Margin of Eastern Treads Ltd?

Eastern Treads Ltd Net Profit Margin is -5.03% for FY-2025, is in line with with its 5-year median of -5.03%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-4.8	-4.8
Operating Profit Margin	-3.6	-3.6
Net Profit Margin	-5.03	-5.03

Q.9 Debt to Equity ratio of Eastern Treads Ltd?

Eastern Treads Ltd Debt-to-Equity ratio is -1.95, which is lower with the industry average of 0.58, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Eastern Treads Ltd?

Eastern Treads Ltd Debt to cash flow from operations is 72.93, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Eastern Treads Ltd?

Promoters hold 65.48% of the Eastern Treads Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Eastern Treads Ltd vs industry peers?

Eastern Treads Ltd revenue CAGR is -4.90%, compared to the industry median CAGR of 12.4%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	1.2	12.4
Gross Profit Growth	0	17.6
Operating Profit Growth	-1,769.2	12.6
Net Profit Growth	0	15.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.78	1.32
ROE	-	6.21
ROCE	-7.96	7.92
Cash Conversion Cycle (days)	53.32	79

Valuation & price assessment

Q.1 Stock return of Eastern Treads Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -14.3% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-14.3%	-13.7%	-4.3%	-19.7%

Q.3 Valuation ratios of Eastern Treads Ltd vs historical?

The current P/E is higher 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	-	-6.16	25.66
Price to Book	-0.84	-1.36	2.71
Price to Sales	0.23	0.31	1.32
EV to EBITDA	22.59	-9.27	13.76

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