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Check Before You Invest : Ecoline Exim Ltd

BSE: 0 NSE: ECOLINE ISIN: INE0VBS01016
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Ecoline Exim Ltd belong to?
Ecoline Exim Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Ecoline Exim Ltd a good quality company?
Ecoline Exim 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 Ecoline Exim Ltd undervalued or overvalued?
Ecoline Exim 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 15.51 14.39
Price to Book 1.91 2.87
Price to Sales 1.12 1.01
EV to EBITDA 10.66 10.08
Q.4 Is Ecoline Exim Ltd a good buy now?
Ecoline Exim Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Ecoline Exim Ltd?
Ecoline Exim Ltd revenue growth is -1.1% for FY-2025, which is below its 3-year CAGR of 10.71%, indicating slower growth.

Q.2 Gross Profit margin of Ecoline Exim Ltd?
Ecoline Exim Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.4% for FY-2025, which is in line with its 3-year median of 10.4%, indicating stable margins.

Q.3 Operating Profit Margin of Ecoline Exim Ltd?
Ecoline Exim Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.92% for FY-2025, which is above its 3-year median of 9.31% indicating increasing margins.

Q.4 Net Profit Margin of Ecoline Exim Ltd?
Ecoline Exim Ltd Net Profit Margin is 6.99% for FY-2025, is in line with its 3-year median of 6.99%, indicating stable margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 10.4 10.4
Operating Profit Margin (%) 9.92 9.31
Net Profit Margin (%) 6.99 6.99

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Ecoline Exim Ltd?
Ecoline Exim Ltd Return on Asset is 13.86%, which is below its 3-year historical median of 17.85%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Ecoline Exim Ltd?
Ecoline Exim Ltd Return on capital employed is 22.76% for FY-2025, which is below its 3-year historical median of 29.92%. 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 Ecoline Exim Ltd?
Ecoline Exim Ltd Return on equity is 23.82% for FY-2025, which is below its 3-year historical median of 37.19%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Ecoline Exim Ltd?
Ecoline Exim Ltd Cash conversion cycle is 87 days, above its 3-year historical median of 74 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) 1.98 2.38
ROE (%) 23.82 37.19
ROCE (%) 22.76 29.92
Cash Conversion Cycle 87 days 74 days

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

Q.9 Debt to Equity ratio of Ecoline Exim Ltd?
Ecoline Exim Ltd Debt-to-Equity ratio is 0.45, which is above the industry average of 0.42, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Ecoline Exim Ltd?
Ecoline Exim Ltd Debt to cash flow from operations is -8.01, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Ecoline Exim Ltd?

Q.1 Promoter shareholding and pledge status of Ecoline Exim Ltd?
Promoters hold 74.57% of the Ecoline Exim Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Ecoline Exim Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Ecoline Exim Ltd vs industry peers?
Ecoline Exim Ltd revenue CAGR is 10.71%, compared to the industry median CAGR of 1.04%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) -1.1 1
Gross Profit Growth (%) -12.5 6.9
Operating Profit Growth (%) 8 6.3
Net Profit Growth (%) -13.6 10
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.98 0.97
ROE (%) 23.82 5.2
ROCE (%) 22.76 7.53
Cash Conversion Cycle (days) 86.78 101

Valuation & price assessment

Q.1 Stock return of Ecoline Exim 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 Ecoline Exim Ltd vs historical?
The current P/E ratio of 15.51 is higher than its historical median of 14.39, indicating that the stock is trading above 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 15.51 14.39 21.85
Price to Book 1.91 2.87 1.39
Price to Sales 1.12 1.01 1.29
EV to EBITDA 10.66 10.08 10.21

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