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Check Before You Invest : Foseco Crucible (India) Ltd

BSE: 523160 NSE: ISIN: INE599F01020
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Refractories

Snapshot

Q.1 Which industry/sub-sector does Foseco Crucible (India) Ltd belong to?
Foseco Crucible (India) Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Refractories segment.
Q.2 Is Foseco Crucible (India) Ltd a good quality company?
Foseco Crucible (India) Ltd is a good quality company, based on a consistently good 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 Foseco Crucible (India) Ltd undervalued or overvalued?
Foseco Crucible (India) 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 36.93 33.98
Price to Book 4.93 5.30
Price to Sales 4.02 4.42
EV to EBITDA 11.49 17.38
Q.4 Is Foseco Crucible (India) Ltd a good buy now?
Foseco Crucible (India) 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 Foseco Crucible (India) Ltd?
Foseco Crucible (India) Ltd revenue growth is 3.7% for FY-2025, which is below its 5-year CAGR of 6.26%, indicating slower growth.

Q.2 Gross Profit margin of Foseco Crucible (India) Ltd?
Foseco Crucible (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 27.7% for FY-2025, which is in line with its 5-year median of 26.4%, indicating stable margins.

Q.3 Operating Profit Margin of Foseco Crucible (India) Ltd?
Foseco Crucible (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 23.51% for FY-2025, which is above its 5-year median of 19.91% indicating increasing margins.

Q.4 Net Profit Margin of Foseco Crucible (India) Ltd?
Foseco Crucible (India) Ltd Net Profit Margin is 15.81% for FY-2025, is above its 5-year median of 13.99%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 27.7 26.4
Operating Profit Margin (%) 23.51 19.91
Net Profit Margin (%) 15.81 13.99

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Foseco Crucible (India) Ltd?
Foseco Crucible (India) Ltd Return on Asset is 16.14%, which is above its 5-year historical median of 14.11%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Foseco Crucible (India) Ltd?
Foseco Crucible (India) Ltd Return on capital employed is 30.42% for FY-2025, which is above its 5-year historical median of 25.8%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Foseco Crucible (India) Ltd?
Foseco Crucible (India) Ltd Return on equity is 21.18% for FY-2025, which is above its 5-year historical median of 18.4%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Foseco Crucible (India) Ltd?
Foseco Crucible (India) Ltd Cash conversion cycle is 3 days, below its 5-year historical median of 39 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) 1.02 1.01
ROE (%) 21.18 18.4
ROCE (%) 30.42 25.8
Cash Conversion Cycle 3 days 39 days

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

Q.9 Debt to Equity ratio of Foseco Crucible (India) Ltd?
Foseco Crucible (India) Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.11, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Foseco Crucible (India) Ltd?
Foseco Crucible (India) Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Foseco Crucible (India) Ltd?

Q.1 Promoter shareholding and pledge status of Foseco Crucible (India) Ltd?
Promoters hold 76.77% of the Foseco Crucible (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Foseco Crucible (India) Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Foseco Crucible (India) Ltd vs industry peers?
Foseco Crucible (India) Ltd revenue CAGR is 6.26%, compared to the industry median CAGR of 4.42%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 3.7 4.4
Gross Profit Growth (%) 9.1 12.4
Operating Profit Growth (%) 7.9 12.3
Net Profit Growth (%) 21.7 14.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.02 0.85
ROE (%) 21.18 13.08
ROCE (%) 30.42 14.66
Cash Conversion Cycle (days) 3.17 95

Valuation & price assessment

Q.1 Valuation ratios of Foseco Crucible (India) Ltd vs historical?
The current P/E ratio of 36.93 is higher than its historical median of 33.98, indicating that the stock is trading above its historical average valuation.
Q.2 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 36.93 33.98 34.18
Price to Book 4.93 5.30 3.58
Price to Sales 4.02 4.42 3.86
EV to EBITDA 11.49 17.38 15.61
Q.3 Stock return of Foseco Crucible (India) Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 19% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
19% 7% 5.2% -20.1%

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