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Check Before You Invest : IP Rings Ltd

BSE: 523638 NSE: IPRINGLTD ISIN: INE558A01019
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does IP Rings Ltd belong to?
IP Rings Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is IP Rings Ltd a good quality company?
IP Rings Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is IP Rings Ltd undervalued or overvalued?
IP Rings Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is IP Rings Ltd a good buy now?
IP Rings 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 IP Rings Ltd?
IP Rings Ltd revenue growth is -4.2% for FY-2025 , which is below its 5 year CAGR of 8.9% , indicating slower growth.
Q.2 Gross Profit margin of IP Rings Ltd?
IP Rings Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.3% for FY-2025 , which is below its 5 year median of 5.7% , indicating decreasing margins.
Q.3 Operating Profit Margin of IP Rings Ltd?
IP Rings Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.3% for FY-2025 , which is below its 5 year median of 8.04% indicating decreasing margins.
Q.4 Net Profit Margin of IP Rings Ltd?
IP Rings Ltd Net Profit Margin is -1.05% for FY-2025 , is below with its 5 year median of 0.54%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 4.3 5.7
Operating Profit Margin 7.3 8.04
Net Profit Margin -1.05 0.54
Q.5 Return on Asset of IP Rings Ltd?
IP Rings Ltd Return on Asset is -1.05%, which is below its 5 year historical median of 0.56%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of IP Rings Ltd?
IP Rings Ltd Return on equity is -3.05% for FY-2025 , which is below its historical median of 1.56%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of IP Rings Ltd?
IP Rings Ltd Return on capital employed is 3.68% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of IP Rings Ltd?
IP Rings Ltd Cash conversion cycle is 62 days, below its historical median of 65 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.99 0.99
ROE -3.05 1.56
ROCE 3.68 6.21
Cash Conversion Cycle 62 days 65 days
Q.9 Debt to Equity ratio of IP Rings Ltd?
IP Rings Ltd Debt-to-Equity ratio is 0.96 , which is above with the industry average of 0.4 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of IP Rings Ltd?
IP Rings Ltd Debt to cash flow from operations is 5.12 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of IP Rings Ltd?
Promoters hold 56.58% of the IP Rings Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of IP Rings Ltd vs industry peers?
IP Rings Ltd revenue CAGR is 8.92% , compared to the industry median CAGR of 11.82% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 303.4 492.3
Gross Profit 13 44.4
Operating Profit 22 47
Net Profit -3 23.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.99 1.23
ROE -3.05 11.57
ROCE 3.68 13.36
Cash Conversion Cycle (days) 61.5 47

Valuation & price assessment

Q.1 Stock return of IP Rings Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 3.4% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 3.4% 7% 11.1% -14.9%
Q.3 Valuation ratios of IP Rings 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 72.47 0.00 39.31
Price to Book 1.36 0.63 2.88
Price to Sales 0.42 0.40 1.29
EV to EBITDA 7.19 10.93 11.85

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