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INVESTMENT INSIGHTS

Check Before You Invest : Indokem Ltd

BSE: 504092 NSE: INDOKEM ISIN: INE716F01012
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Chemicals

Snapshot

Q.1 Which industry/sub-sector does Indokem Ltd belong to?
Indokem Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.
Q.2 Is Indokem Ltd a good quality company?
Indokem Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Indokem Ltd undervalued or overvalued?
Indokem Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Indokem Ltd a good buy now?
Indokem 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 Indokem Ltd?
Indokem Ltd revenue growth is 10.1% for FY-2025 , which is below its 5 year CAGR of 11.4% , indicating slower growth.
Q.2 Gross Profit margin of Indokem Ltd?
Indokem Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.9% for FY-2025 , which is in line with its 5 year median of 1.9% , indicating stable margins.
Q.3 Operating Profit Margin of Indokem Ltd?
Indokem Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.25% for FY-2025 , which is in line with its 5 year median of 3.25% indicating stable margins.
Q.4 Net Profit Margin of Indokem Ltd?
Indokem Ltd Net Profit Margin is 0.6% for FY-2025 , is in line with with its 5 year median of 0.6%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 1.9 1.9
Operating Profit Margin 3.25 3.25
Net Profit Margin 0.6 0.6
Q.5 Return on Asset of Indokem Ltd?
Indokem Ltd Return on Asset is 0.74%, which is in line with its 5 year historical median of 0.74%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Indokem Ltd?
Indokem Ltd Return on equity is 2.81% for FY-2025 , which is in line with its historical median of 2.81%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Indokem Ltd?
Indokem Ltd Return on capital employed is 6.59% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Indokem Ltd?
Indokem Ltd Cash conversion cycle is 39 days, below its historical median of 51 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.24 1.24
ROE 2.81 2.81
ROCE 6.59 6.59
Cash Conversion Cycle 39 days 51 days
Q.9 Debt to Equity ratio of Indokem Ltd?
Indokem Ltd Debt-to-Equity ratio is 0.66 , which is above with the industry average of 0.13 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Indokem Ltd?
Indokem Ltd Debt to cash flow from operations is 5.5 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Indokem Ltd?
Promoters hold 68.67% of the Indokem Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Indokem Ltd vs industry peers?
Indokem Ltd revenue CAGR is 11.39% , compared to the industry median CAGR of 7.7% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 153.7 202
Gross Profit 2.9 23.6
Operating Profit 5 24
Net Profit 1 12
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.24 0.93
ROE 2.81 10.18
ROCE 6.59 13.07
Cash Conversion Cycle (days) 38.83 62

Valuation & price assessment

Q.1 Stock return of Indokem Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 58.3% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 58.3% 72.5% 75.4% 174.6%
Q.3 Valuation ratios of Indokem Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 267.59 14.36 41.15
Price to Book 39.38 1.04 2.38
Price to Sales 8.84 0.42 1.93
EV to EBITDA 133.13 8.37 13.71

Check more companies

1. Navin Fluorine Intl
2. Godrej Industries
3. Deepak Nitrite
4. Atul
5. Tata Chemicals
6. BASF India
7. Aarti Inds
8. Aether Industries
9. Deepak Fert & Petro
10. Fine Organic Inds.
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