Check Before You Invest : Indo Borax & Chemicals Ltd

Snapshot

Q.1 Which industry/sub-sector does Indo Borax & Chemicals Ltd belong to?

Indo Borax & Chemicals Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is Indo Borax & Chemicals Ltd a good quality company?

Indo Borax & Chemicals Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Indo Borax & Chemicals Ltd undervalued or overvalued?

Indo Borax & Chemicals Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Indo Borax & Chemicals Ltd a good buy now?

Indo Borax & Chemicals 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 Indo Borax & Chemicals Ltd?

Indo Borax & Chemicals Ltd revenue growth is -8.4% for FY-2025, which is below its 5-year CAGR of 8.74%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Indo Borax & Chemicals Ltd?

Indo Borax & Chemicals Ltd Return on capital employed is 18.52% for FY-2025, which is below its 5-year historical median of 26.28%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Indo Borax & Chemicals Ltd?

Indo Borax & Chemicals Ltd Return on Asset is 12.58%, which is below its 5-year historical median of 17.63%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Indo Borax & Chemicals Ltd?

Indo Borax & Chemicals Ltd Return on equity is 13.37% for FY-2025, which is below its 5-year historical median of 19.1%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Indo Borax & Chemicals Ltd?

Indo Borax & Chemicals Ltd Cash conversion cycle is 90 days, in line with its 5-year historical median of 90 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	0.53	0.85
ROE	13.37	19.1
ROCE	18.52	26.28
Cash Conversion Cycle	90 days	90 days

Q.6 Gross Profit margin of Indo Borax & Chemicals Ltd?

Indo Borax & Chemicals Ltd Gross profit margin which is the profit after deduction of direct costs, is 34.5% for FY-2025, which is above its 5-year median of 31.9%, indicating increasing margins.

Q.7 Operating Profit Margin of Indo Borax & Chemicals Ltd?

Indo Borax & Chemicals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 26.19% for FY-2025, which is in line with its 5-year median of 27.25% indicating stable margins.

Q.8 Net Profit Margin of Indo Borax & Chemicals Ltd?

Indo Borax & Chemicals Ltd Net Profit Margin is 23.9% for FY-2025, is in line with with its 5-year median of 23.45%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	34.5	31.9
Operating Profit Margin	26.19	27.25
Net Profit Margin	23.9	23.45

Q.9 Debt to Equity ratio of Indo Borax & Chemicals Ltd?

Indo Borax & Chemicals Ltd Debt-to-Equity ratio is 0.00, 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 Indo Borax & Chemicals Ltd?

Indo Borax & Chemicals Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Indo Borax & Chemicals Ltd?

Promoters hold 30.80% of the Indo Borax & Chemicals Ltd, with 100.00% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Indo Borax & Chemicals Ltd vs industry peers?

Indo Borax & Chemicals Ltd revenue CAGR is 8.74%, 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	-8.4	9.6
Gross Profit Growth	11.1	14.3
Operating Profit Growth	7	12
Net Profit Growth	10.5	12.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.53	0.97
ROE	13.37	10.68
ROCE	18.52	13.26
Cash Conversion Cycle (days)	89.61	63

Valuation & price assessment

Q.1 Stock return of Indo Borax & Chemicals Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 23.2% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	23.2%	26%	30.7%	45.3%

Q.3 Valuation ratios of Indo Borax & 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	19.34	12.79	27.93
Price to Book	2.38	2.05	2.22
Price to Sales	4.33	2.84	1.93
EV to EBITDA	14.34	8.11	14.18

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