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Check Before You Invest : Elango Industries Ltd

BSE: 513452 NSE: ISIN: INE594D01018
  |   Sector:  Metals & Mining   |   Industry:  Steel/Sponge Iron/Pig Iron

Snapshot

Q.1 Which industry/sub-sector does Elango Industries Ltd belong to?
Elango Industries Ltd belongs to the Metals & Mining sector, operating specifically within the Steel/Sponge Iron/Pig Iron segment.
Q.2 Is Elango Industries Ltd a good quality company?
Elango Industries Ltd is a quality company, based on a 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 Elango Industries Ltd undervalued or overvalued?
Elango Industries Ltd appears Somewhat 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 5-year
Historic Median
Price to Earnings - -
Price to Book 1.03 0.92
Price to Sales 15.33 6.25
EV to EBITDA -30.64 -16.55
Q.4 Is Elango Industries Ltd a good buy now?
Elango Industries 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 Elango Industries Ltd?
Elango Industries Ltd revenue growth is -62.8% for FY-2025, which is below its 5-year CAGR of 44.96%, indicating slower growth.

Q.2 Gross Profit margin of Elango Industries Ltd?
Elango Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is -20.6% for FY-2025, which is in line with its 5-year median of -20.6%, indicating stable margins.

Q.3 Operating Profit Margin of Elango Industries Ltd?
Elango Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -20.59% for FY-2025, which is above its 5-year median of -23.04% indicating increasing margins.

Q.4 Net Profit Margin of Elango Industries Ltd?
Elango Industries Ltd Net Profit Margin is -22.61% for FY-2025, is in line with its 5-year median of -22.61%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -20.6 -20.6
Operating Profit Margin (%) -20.59 -23.04
Net Profit Margin (%) -22.61 -22.61

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Elango Industries Ltd?
Elango Industries Ltd Return on Asset is -4.59%, which is below its 5-year historical median of -2.77%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Elango Industries Ltd?
Elango Industries Ltd Return on capital employed is -5.5% for FY-2025, which is below its 5-year historical median of -3.48%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Elango Industries Ltd?
Elango Industries Ltd Return on equity is -5.6% for FY-2025, which is below its 5-year historical median of -3.58%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Elango Industries Ltd?
Elango Industries Ltd Cash conversion cycle is -3 days, below its 5-year historical median of 1 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 (x) 0.2 0.12
ROE (%) -5.6 -3.58
ROCE (%) -5.5 -3.48
Cash Conversion Cycle -3 days 1 days

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

Q.9 Debt to Equity ratio of Elango Industries Ltd?
Elango Industries Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.36, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Elango Industries Ltd?
Elango Industries Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Elango Industries Ltd?

Q.1 Promoter shareholding and pledge status of Elango Industries Ltd?
Promoters hold 35.20% of the Elango Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Elango Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Elango Industries Ltd vs industry peers?
Elango Industries Ltd revenue CAGR is 44.96%, compared to the industry median CAGR of 7.65%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -62.8 7.7
Gross Profit Growth (%) 0 13
Operating Profit Growth (%) 0 14
Net Profit Growth (%) 0 20.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.2 1.81
ROE (%) -5.6 8.94
ROCE (%) -5.5 13.27
Cash Conversion Cycle (days) -3.41 36

Valuation & price assessment

Q.1 Stock return of Elango Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 4.3% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
4.3% 22.6% 7.6% -28.2%
Q.2 Valuation ratios of Elango Industries Ltd vs historical?
The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near its historical average valuation.
Q.3 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 - - 16.39
Price to Book 1.03 0.92 1.83
Price to Sales 15.33 6.25 1.06
EV to EBITDA -30.64 -16.55 10.61

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