Check Before You Invest : Eco Recycling Ltd

Snapshot

Q.1 Which industry/sub-sector does Eco Recycling Ltd belong to?

Eco Recycling Ltd belongs to the Miscellaneous sector, operating specifically within the Environmental Services segment.

Q.2 Is Eco Recycling Ltd a good quality company?

Eco Recycling Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Eco Recycling Ltd undervalued or overvalued?

Eco Recycling Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Eco Recycling Ltd a good buy now?

Eco Recycling 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 Eco Recycling Ltd?

Eco Recycling Ltd revenue growth is 56.9% for FY-2025, which is above its 5-year CAGR of 29.24%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Eco Recycling Ltd?

Eco Recycling Ltd Return on capital employed is 46.1% for FY-2025, which is above its 5-year historical median of 30.91%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Eco Recycling Ltd?

Eco Recycling Ltd Return on Asset is 25.17%, which is above its 5-year historical median of 22.34%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Eco Recycling Ltd?

Eco Recycling Ltd Return on equity is 33.03% for FY-2025, which is in line with its 5-year historical median of 32.09%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Eco Recycling Ltd?

Eco Recycling Ltd Cash conversion cycle is 111 days, above its 5-year historical median of 75 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.47	0.28
ROE	33.03	32.09
ROCE	46.1	30.91
Cash Conversion Cycle	111 days	75 days

Q.6 Gross Profit margin of Eco Recycling Ltd?

Eco Recycling Ltd Gross profit margin which is the profit after deduction of direct costs, is 74.9% for FY-2025, which is in line with its 5-year median of 72.8%, indicating stable margins.

Q.7 Operating Profit Margin of Eco Recycling Ltd?

Eco Recycling Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 70.48% for FY-2025, which is above its 5-year median of 22.97% indicating increasing margins.

Q.8 Net Profit Margin of Eco Recycling Ltd?

Eco Recycling Ltd Net Profit Margin is 53.09% for FY-2025, is in line with with its 5-year median of 53.09%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	74.9	72.8
Operating Profit Margin	70.48	22.97
Net Profit Margin	53.09	53.09

Q.9 Debt to Equity ratio of Eco Recycling Ltd?

Eco Recycling Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.29, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Eco Recycling Ltd?

Eco Recycling Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Eco Recycling Ltd?

Promoters hold 73.35% of the Eco Recycling Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Eco Recycling Ltd vs industry peers?

Eco Recycling Ltd revenue CAGR is 29.24%, compared to the industry median CAGR of 29.24%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	56.9	29.2
Gross Profit Growth	65	22.1
Operating Profit Growth	93.8	15.7
Net Profit Growth	43.8	26.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.47	0.84
ROE	33.03	13.91
ROCE	46.1	13.74
Cash Conversion Cycle (days)	111.19	74

Valuation & price assessment

Q.1 Stock return of Eco Recycling Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 28% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	28%	52.4%	56.5%	-19.5%

Q.3 Valuation ratios of Eco Recycling Ltd vs historical?

The current P/E is lower 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	34.92	41.93	31.76
Price to Book	7.87	7.85	4.86
Price to Sales	17.23	19.51	3.24
EV to EBITDA	24.3	28.68	17.79

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