Check Before You Invest : Eiko Lifesciences Ltd

BSE: 540204 NSE: ISIN: INE666Q01016

| Sector: Chemicals & Fertilizers | Industry: Chemicals

Snapshot

Q.1 Which industry/sub-sector does Eiko Lifesciences Ltd belong to?

Eiko Lifesciences Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is Eiko Lifesciences Ltd a good quality company?

Eiko Lifesciences Ltd is a quality company, based on a 9-year financial track record.

Q.3 Is Eiko Lifesciences Ltd undervalued or overvalued?

Eiko Lifesciences Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Eiko Lifesciences Ltd a good buy now?

Eiko Lifesciences 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 Eiko Lifesciences Ltd?

Eiko Lifesciences Ltd revenue growth is 16.3% for FY-2025, which is below its 5-year CAGR of NA%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Eiko Lifesciences Ltd?

Eiko Lifesciences Ltd Return on capital employed is 4.5% for FY-2025, which is in line with its 5-year historical median of 4.5%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Eiko Lifesciences Ltd?

Eiko Lifesciences Ltd Return on Asset is 3.08%, which is above its 5-year historical median of 2.74%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Eiko Lifesciences Ltd?

Eiko Lifesciences Ltd Return on equity is 3.25% for FY-2025, which is in line with its 5-year historical median of 3.25%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Eiko Lifesciences Ltd?

Eiko Lifesciences Ltd Cash conversion cycle is 158 days, above its 5-year historical median of 145 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	0.57	0.67
ROE	3.25	3.25
ROCE	4.5	4.5
Cash Conversion Cycle	158 days	145 days

Q.6 Gross Profit margin of Eiko Lifesciences Ltd?

Eiko Lifesciences Ltd Gross profit margin which is the profit after deduction of direct costs, is 8% for FY-2025, which is above its 5-year median of 7.5%, indicating increasing margins.

Q.7 Operating Profit Margin of Eiko Lifesciences Ltd?

Eiko Lifesciences Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.28% for FY-2025, which is in line with its 5-year median of 5.24% indicating stable margins.

Q.8 Net Profit Margin of Eiko Lifesciences Ltd?

Eiko Lifesciences Ltd Net Profit Margin is 5.36% for FY-2025, is above with its 5-year median of 4.2%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	8	7.5
Operating Profit Margin	5.28	5.24
Net Profit Margin	5.36	4.2

Q.9 Debt to Equity ratio of Eiko Lifesciences Ltd?

Eiko Lifesciences Ltd Debt-to-Equity ratio is 0.03, which is lower with the industry average of 0.26, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Eiko Lifesciences Ltd?

Eiko Lifesciences Ltd Debt to cash flow from operations is 0.86, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Eiko Lifesciences Ltd?

Promoters hold 39.91% of the Eiko Lifesciences Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Eiko Lifesciences Ltd vs industry peers?

Eiko Lifesciences Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 9.62%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	16.3	9.6
Gross Profit Growth	58.2	14.3
Operating Profit Growth	6.2	12
Net Profit Growth	132	12.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.57	0.97
ROE	3.25	10.68
ROCE	4.5	13.26
Cash Conversion Cycle (days)	157.97	63

Valuation & price assessment

Q.1 Stock return of Eiko Lifesciences Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of -3.88% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-3.9%	-9.3%	-1.3%

Q.3 Valuation ratios of Eiko Lifesciences 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	21.56	76.62	27.93
Price to Book	1.16	1.54	2.22
Price to Sales	2.17	2.48	1.93
EV to EBITDA	13.42	31.41	14.18

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