Check Before You Invest : Haryana Leather Chemicals Ltd

BSE: 524080 NSE: ISIN: INE681F01018

| Sector: Chemicals & Fertilizers | Industry: Chemicals

Snapshot

Q.1 Which industry/sub-sector does Haryana Leather Chemicals Ltd belong to?

Haryana Leather Chemicals Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is Haryana Leather Chemicals Ltd a good quality company?

Haryana Leather Chemicals Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Haryana Leather Chemicals Ltd undervalued or overvalued?

Haryana Leather Chemicals Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Haryana Leather Chemicals Ltd a good buy now?

Haryana Leather Chemicals 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

Q.1 Revenue growth of Haryana Leather Chemicals Ltd?

Haryana Leather Chemicals Ltd revenue growth is 10.4% for FY-2025, which is above its 5-year CAGR of 6.96%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Haryana Leather Chemicals Ltd?

Haryana Leather Chemicals Ltd Return on capital employed is 8.04% for FY-2025, which is above its 5-year historical median of 7.11%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Haryana Leather Chemicals Ltd?

Haryana Leather Chemicals Ltd Return on Asset is 4.66%, which is above its 5-year historical median of 4.33%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Haryana Leather Chemicals Ltd?

Haryana Leather Chemicals Ltd Return on equity is 5.47% for FY-2025, which is above its 5-year historical median of 5.17%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Haryana Leather Chemicals Ltd?

Haryana Leather Chemicals Ltd Cash conversion cycle is 68 days, in line with its 5-year historical median of 71 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	0.99	0.98
ROE	5.47	5.17
ROCE	8.04	7.11
Cash Conversion Cycle	68 days	71 days

Q.6 Gross Profit margin of Haryana Leather Chemicals Ltd?

Haryana Leather Chemicals Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.7% for FY-2025, which is in line with its 5-year median of 8.7%, indicating stable margins.

Q.7 Operating Profit Margin of Haryana Leather Chemicals Ltd?

Haryana Leather Chemicals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.41% for FY-2025, which is in line with its 5-year median of 5.41% indicating stable margins.

Q.8 Net Profit Margin of Haryana Leather Chemicals Ltd?

Haryana Leather Chemicals Ltd Net Profit Margin is 4.69% for FY-2025, is in line with with its 5-year median of 4.69%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	8.7	8.7
Operating Profit Margin	5.41	5.41
Net Profit Margin	4.69	4.69

Q.9 Debt to Equity ratio of Haryana Leather Chemicals Ltd?

Haryana Leather Chemicals Ltd Debt-to-Equity ratio is 0.02, which is lower with the industry average of 0.26, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Haryana Leather Chemicals Ltd?

Haryana Leather Chemicals Ltd Debt to cash flow from operations is 3.77, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Haryana Leather Chemicals Ltd?

Promoters hold 41.27% of the Haryana Leather Chemicals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Haryana Leather Chemicals Ltd vs industry peers?

Haryana Leather Chemicals Ltd revenue CAGR is 6.96%, compared to the industry median CAGR of 9.62%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	10.4	9.6
Gross Profit Growth	-34.9	14.3
Operating Profit Growth	-13	12
Net Profit Growth	-50.2	12.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.99	0.97
ROE	5.47	10.68
ROCE	8.04	13.26
Cash Conversion Cycle (days)	67.86	63

Valuation & price assessment

Q.1 Stock return of Haryana Leather Chemicals Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 8.4% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	8.4%	15.6%	13.5%	-12.3%

Q.3 Valuation ratios of Haryana Leather Chemicals 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	17.08	13.30	27.93
Price to Book	0.73	0.63	2.22
Price to Sales	0.65	0.59	1.93
EV to EBITDA	5.27	4.23	14.18

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