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Check Before You Invest : GSP Crop science Ltd

BSE: 544733 NSE: GSPCROP ISIN: INE713R01022
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Pesticides & Agrochemicals

Snapshot

Q.1 Which industry/sub-sector does GSP Crop science Ltd belong to?
GSP Crop science Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Pesticides & Agrochemicals segment.
Q.2 Is GSP Crop science Ltd a good quality company?
GSP Crop science Ltd is a average quality company, based on a somewhat consistent 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 GSP Crop science Ltd undervalued or overvalued?
GSP Crop science 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 26.83 -
Price to Book 3.08 -
Price to Sales 1.44 -
EV to EBITDA 14.94 -
Q.4 Is GSP Crop science Ltd a good buy now?
GSP Crop science 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 GSP Crop science Ltd?
GSP Crop science Ltd revenue growth is 14.9% for FY-2025, which is above its 5-year CAGR of 8.68%, indicating faster growth.

Q.2 Gross Profit margin of GSP Crop science Ltd?
GSP Crop science Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.2% for FY-2025, which is above its 5-year median of 6.8%, indicating increasing margins.

Q.3 Operating Profit Margin of GSP Crop science Ltd?
GSP Crop science Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.47% for FY-2025, which is above its 5-year median of 8.29% indicating increasing margins.

Q.4 Net Profit Margin of GSP Crop science Ltd?
GSP Crop science Ltd Net Profit Margin is 5.37% for FY-2025, is above its 5-year median of 5%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 7.2 6.8
Operating Profit Margin (%) 9.47 8.29
Net Profit Margin (%) 5.37 5

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of GSP Crop science Ltd?
GSP Crop science Ltd Return on Asset is 7.18%, which is in line with its 5-year historical median of 7.12%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of GSP Crop science Ltd?
GSP Crop science Ltd Return on capital employed is 20.98% for FY-2025, which is above its 5-year historical median of 18.72%. 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 GSP Crop science Ltd?
GSP Crop science Ltd Return on equity is 19.6% for FY-2025, which is above its 5-year historical median of 17.34%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of GSP Crop science Ltd?
GSP Crop science Ltd Cash conversion cycle is 63 days, in line with its 5-year historical median of 63 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.59 1.59
ROE (%) 19.6 17.34
ROCE (%) 20.98 18.72
Cash Conversion Cycle 63 days 63 days

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

Q.9 Debt to Equity ratio of GSP Crop science Ltd?
GSP Crop science Ltd Debt-to-Equity ratio is 0.58, which is above the industry average of 0.27, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of GSP Crop science Ltd?
GSP Crop science Ltd Debt to cash flow from operations is 4.92, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of GSP Crop science Ltd?

Q.1 Promoter shareholding and pledge status of GSP Crop science Ltd?
Promoters hold 71.73% of the GSP Crop science Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does GSP Crop science Ltd performance compare with that of its Peers?

Q.1 Revenue growth of GSP Crop science Ltd vs industry peers?
GSP Crop science Ltd revenue CAGR is 8.68%, compared to the industry median CAGR of 8.45%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 14.9 8.5
Gross Profit Growth (%) 53.2 13.9
Operating Profit Growth (%) 31.7 14
Net Profit Growth (%) 72.7 14.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.59 1.19
ROE (%) 19.6 13.63
ROCE (%) 20.98 16.98
Cash Conversion Cycle (days) 63.02 93

Valuation & price assessment

Q.1 Stock return of GSP Crop science Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of GSP Crop science Ltd vs historical?
The current P/E ratio of 26.83 is higher than its historical median of , 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 26.83 - 24.78
Price to Book 3.08 - 2.67
Price to Sales 1.44 - 1.43
EV to EBITDA 14.94 - 12.86

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