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Check Before You Invest : Elgi Rubber Company Ltd

BSE: 590023 NSE: ELGIRUBCO ISIN: INE819L01012
  |   Sector:  Agriculture & Allied activities   |   Industry:  Rubber Products

Snapshot

Q.1 Which industry/sub-sector does Elgi Rubber Company Ltd belong to?
Elgi Rubber Company Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Rubber Products segment.
Q.2 Is Elgi Rubber Company Ltd a good quality company?
Elgi Rubber Company Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Elgi Rubber Company Ltd undervalued or overvalued?
Elgi Rubber Company Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Elgi Rubber Company Ltd a good buy now?
Elgi Rubber Company 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 Elgi Rubber Company Ltd?
Elgi Rubber Company Ltd revenue growth is -0.7% for FY-2025 , which is below its 5 year CAGR of 0.8% , indicating slower growth.
Q.2 Gross Profit margin of Elgi Rubber Company Ltd?
Elgi Rubber Company Ltd Gross profit margin which is the profit after deduction of direct costs, is -0.8% for FY-2025 , which is below its 5 year median of 4.7% , indicating decreasing margins.
Q.3 Operating Profit Margin of Elgi Rubber Company Ltd?
Elgi Rubber Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.75% for FY-2025 , which is below its 5 year median of 4.34% indicating decreasing margins.
Q.4 Net Profit Margin of Elgi Rubber Company Ltd?
Elgi Rubber Company Ltd Net Profit Margin is -1.14% for FY-2025 , is below with its 5 year median of 0.31%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin -0.8 4.7
Operating Profit Margin 3.75 4.34
Net Profit Margin -1.14 0.31
Q.5 Return on Asset of Elgi Rubber Company Ltd?
Elgi Rubber Company Ltd Return on Asset is -0.85%, which is below its 5 year historical median of 0.22%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Elgi Rubber Company Ltd?
Elgi Rubber Company Ltd Return on equity is -2.36% for FY-2025 , which is below its historical median of 0.59%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Elgi Rubber Company Ltd?
Elgi Rubber Company Ltd Return on capital employed is 4.47% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Elgi Rubber Company Ltd?
Elgi Rubber Company Ltd Cash conversion cycle is 127 days, above its historical median of 120 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.74 0.74
ROE -2.36 0.59
ROCE 4.47 4.47
Cash Conversion Cycle 127 days 120 days
Q.9 Debt to Equity ratio of Elgi Rubber Company Ltd?
Elgi Rubber Company Ltd Debt-to-Equity ratio is 1.51 , which is above with the industry average of 0.44 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Elgi Rubber Company Ltd?
Elgi Rubber Company Ltd Debt to cash flow from operations is -33.35 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Elgi Rubber Company Ltd?
Promoters hold 65.03% of the Elgi Rubber Company Ltd, with 21.51% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Elgi Rubber Company Ltd vs industry peers?
Elgi Rubber Company Ltd revenue CAGR is 0.83% , compared to the industry median CAGR of 10.28% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 383.9 93.7
Gross Profit -3.1 5.3
Operating Profit 6 8
Net Profit -4 3
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.74 1.31
ROE -2.36 5.31
ROCE 4.47 7.92
Cash Conversion Cycle (days) 126.85 76

Valuation & price assessment

Q.1 Stock return of Elgi Rubber Company Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 15.86% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 15.9% 14.7% -11.9%
Q.3 Valuation ratios of Elgi Rubber Company Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 22.28 21.65
Price to Book 6.64 6.33 2.61
Price to Sales 0.72 0.66 1.25
EV to EBITDA -47.19 10.20 13.94

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