Check Before You Invest : Frontier Springs Ltd

Q: Which industry/sub-sector does Frontier Springs Ltd belong to?

Frontier Springs Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.

Q: Is Frontier Springs Ltd a good quality company?

Frontier Springs 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: Is Frontier Springs Ltd undervalued or overvalued?

Frontier Springs Ltd appears 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. Price to Earnings, Current: 34.77, Historic Median: 30.07. Price to Book, Current: 11.05, Historic Median: 3.71. Price to Sales, Current: 6.33, Historic Median: 2.58. EV to EBITDA, Current: 24.28, Historic Median: 19.64

Q: Is Frontier Springs Ltd a good buy now?

Frontier Springs 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

Q: Revenue growth of Frontier Springs Ltd?

Frontier Springs Ltd revenue growth is 70.8% for FY-2025, which is above its 5-year CAGR of 18.29%, indicating faster growth.

Q: Gross Profit margin of Frontier Springs Ltd?

Frontier Springs Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.4% for FY-2025, which is above its 5-year median of 15.5%, indicating increasing margins.

Q: Operating Profit Margin of Frontier Springs Ltd?

Frontier Springs Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.62% for FY-2025, which is above its 5-year median of 15.62% indicating increasing margins.

Q: Net Profit Margin of Frontier Springs Ltd?

Frontier Springs Ltd Net Profit Margin is 14.98% for FY-2025, is above its 5-year median of 9.59%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 18.4, Historic Median: 15.5. Operating Profit Margin (%), Current: 21.62, Historic Median: 15.62. Net Profit Margin (%), Current: 14.98, Historic Median: 9.59

Q: Return on Asset of Frontier Springs Ltd?

Frontier Springs Ltd Return on Asset is 23.68%, which is above its 5-year historical median of 9.67%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Frontier Springs Ltd?

Frontier Springs Ltd Return on capital employed is 42.18% for FY-2025, which is above its 5-year historical median of 18.29%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Frontier Springs Ltd

Snapshot

Q.1 Which industry/sub-sector does Frontier Springs Ltd belong to?

Frontier Springs Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.

Q.2 Is Frontier Springs Ltd a good quality company?

Frontier Springs 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 Frontier Springs Ltd undervalued or overvalued?

Frontier Springs Ltd appears 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	34.77	30.07
Price to Book	11.05	3.71
Price to Sales	6.33	2.58
EV to EBITDA	24.28	19.64

Q.4 Is Frontier Springs Ltd a good buy now?

Frontier Springs 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 Frontier Springs Ltd?

Frontier Springs Ltd revenue growth is 70.8% for FY-2025, which is above its 5-year CAGR of 18.29%, indicating faster growth.

Q.2 Gross Profit margin of Frontier Springs Ltd?

Frontier Springs Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.4% for FY-2025, which is above its 5-year median of 15.5%, indicating increasing margins.

Q.3 Operating Profit Margin of Frontier Springs Ltd?

Frontier Springs Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.62% for FY-2025, which is above its 5-year median of 15.62% indicating increasing margins.

Q.4 Net Profit Margin of Frontier Springs Ltd?

Frontier Springs Ltd Net Profit Margin is 14.98% for FY-2025, is above its 5-year median of 9.59%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	18.4	15.5
Operating Profit Margin (%)	21.62	15.62
Net Profit Margin (%)	14.98	9.59

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Frontier Springs Ltd?

Frontier Springs Ltd Return on Asset is 23.68%, which is above its 5-year historical median of 9.67%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Frontier Springs Ltd?

Frontier Springs Ltd Return on capital employed is 42.18% for FY-2025, which is above its 5-year historical median of 18.29%. 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 Frontier Springs Ltd?

Frontier Springs Ltd Return on equity is 32.53% for FY-2025, which is above its 5-year historical median of 14.07%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Frontier Springs Ltd?

Frontier Springs Ltd Cash conversion cycle is 36 days, below its 5-year historical median of 47 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)	1.87	1.26
ROE (%)	32.53	14.07
ROCE (%)	42.18	18.29
Cash Conversion Cycle	36 days	47 days

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

Q.9 Debt to Equity ratio of Frontier Springs Ltd?

Frontier Springs Ltd Debt-to-Equity ratio is 0.05, which is lower the industry average of 0.31, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Frontier Springs Ltd?

Frontier Springs Ltd Debt to cash flow from operations is 0.27, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Frontier Springs Ltd?

Q.1 Promoter shareholding and pledge status of Frontier Springs Ltd?

Promoters hold 51.76% of the Frontier Springs Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Frontier Springs Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Frontier Springs Ltd vs industry peers?

Frontier Springs Ltd revenue CAGR is 18.29%, compared to the industry median CAGR of 7.56%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	70.8	7.6
Gross Profit Growth (%)	138.1	19.3
Operating Profit Growth (%)	138.1	13.8
Net Profit Growth (%)	169.2	24.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.87	1.27
ROE (%)	32.53	8.04
ROCE (%)	42.18	11.28
Cash Conversion Cycle (days)	36.44	72

Valuation & price assessment

Q.1 Stock return of Frontier Springs Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 70.6% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	70.6%	76.1%	129%	107.3%

Q.2 Valuation ratios of Frontier Springs Ltd vs historical?

The current P/E ratio of 34.77 is higher than its historical median of 30.07, indicating that the stock is trading above 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	34.77	30.07	17.36
Price to Book	11.05	3.71	1.63
Price to Sales	6.33	2.58	0.74
EV to EBITDA	24.28	19.64	10.05

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Check Before You Invest : Frontier Springs Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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