Check Before You Invest : Electrotherm (India) Ltd

Snapshot

Q.1 Which industry/sub-sector does Electrotherm (India) Ltd belong to?

Electrotherm (India) Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.

Q.2 Is Electrotherm (India) Ltd a good quality company?

Electrotherm (India) Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Electrotherm (India) Ltd undervalued or overvalued?

Electrotherm (India) Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Electrotherm (India) Ltd a good buy now?

Electrotherm (India) 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

Q.1 Revenue growth of Electrotherm (India) Ltd?

Electrotherm (India) Ltd revenue growth is -3.7% for FY-2025, which is below its 5-year CAGR of 7.73%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Electrotherm (India) Ltd?

Electrotherm (India) Ltd Return on capital employed is 42.97% for FY-2025, which is above its 5-year historical median of 9.21%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Electrotherm (India) Ltd?

Electrotherm (India) Ltd Return on Asset is 23.38%, which is above its 5-year historical median of 3.32%, indicating improved asset utilization efficiency.

Q.4 Cash conversion cycle of Electrotherm (India) Ltd?

Electrotherm (India) Ltd Cash conversion cycle is 31 days, below its 5-year historical median of 40 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

Q.5 Gross Profit margin of Electrotherm (India) Ltd?

Electrotherm (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.1% for FY-2025, which is above its 5-year median of 7.1%, indicating increasing margins.

Q.6 Operating Profit Margin of Electrotherm (India) Ltd?

Electrotherm (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.98% for FY-2025, which is in line with its 5-year median of 6.98% indicating stable margins.

Q.7 Net Profit Margin of Electrotherm (India) Ltd?

Electrotherm (India) Ltd Net Profit Margin is 10.41% for FY-2025, is above with its 5-year median of 2.51%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	8.1	7.1
Operating Profit Margin	6.98	6.98
Net Profit Margin	10.41	2.51

Q.8 Debt to Equity ratio of Electrotherm (India) Ltd?

Electrotherm (India) Ltd Debt-to-Equity ratio is -10.75, which is lower with the industry average of 0.35, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of Electrotherm (India) Ltd?

Electrotherm (India) Ltd Debt to cash flow from operations is 3.71, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Electrotherm (India) Ltd?

Promoters hold 29.90% of the Electrotherm (India) Ltd, with 7.87% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Electrotherm (India) Ltd vs industry peers?

Electrotherm (India) Ltd revenue CAGR is 7.73%, compared to the industry median CAGR of 11.40%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-3.7	11.4
Gross Profit Growth	-8.5	19.8
Operating Profit Growth	-31.9	13.9
Net Profit Growth	34.5	25.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	2.25	1.33
ROE	-	9.64
ROCE	42.97	12.04
Cash Conversion Cycle (days)	30.94	80

Valuation & price assessment

Q.1 Stock return of Electrotherm (India) Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 25.9% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	25.9%	43.7%	130.1%	-28.9%

Q.3 Valuation ratios of Electrotherm (India) 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	6.54	3.13	17.26
Price to Book	-7.14	-0.47	1.63
Price to Sales	0.27	0.07	0.74
EV to EBITDA	26.12	8.10	10.03

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