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Check Before You Invest : Kachchh Minerals Ltd

BSE: 531778 NSE: ISIN: INE059E01010
  |   Sector:  Metals & Mining   |   Industry:  Mining & Minerals

Snapshot

Q.1 Which industry/sub-sector does Kachchh Minerals Ltd belong to?
Kachchh Minerals Ltd belongs to the Metals & Mining sector, operating specifically within the Mining & Minerals segment.
Q.2 Is Kachchh Minerals Ltd a good quality company?
Kachchh Minerals Ltd is a quality company, based on a 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 Kachchh Minerals Ltd undervalued or overvalued?
Kachchh Minerals 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 - 26.97
Price to Book 15.04 8.29
Price to Sales - 9.11
EV to EBITDA -16.73 26.78
Q.4 Is Kachchh Minerals Ltd a good buy now?
Kachchh Minerals 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 Kachchh Minerals Ltd?
Kachchh Minerals Ltd revenue growth is -88.9% for FY-2025, which is below its 5-year CAGR of -23.68%, indicating slower growth.

Q.2 Gross Profit margin of Kachchh Minerals Ltd?
Kachchh Minerals Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.7% for FY-2025, which is above its 5-year median of 18.5%, indicating increasing margins.

Q.3 Operating Profit Margin of Kachchh Minerals Ltd?
Kachchh Minerals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.68% for FY-2025, which is below its 5-year median of 14.25% indicating decreasing margins.

Q.4 Net Profit Margin of Kachchh Minerals Ltd?
Kachchh Minerals Ltd Net Profit Margin is 6.09% for FY-2025, is below its 5-year median of 10.93%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 20.7 18.5
Operating Profit Margin (%) 8.68 14.25
Net Profit Margin (%) 6.09 10.93

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Kachchh Minerals Ltd?
Kachchh Minerals Ltd Return on Asset is 0.71%, which is below its 5-year historical median of 7.7%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Kachchh Minerals Ltd?
Kachchh Minerals Ltd Return on capital employed is 2.1% for FY-2025, which is below its 5-year historical median of 8.64%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Kachchh Minerals Ltd?
Kachchh Minerals Ltd Return on equity is 0.93% for FY-2025, which is below its 5-year historical median of 11.33%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Kachchh Minerals Ltd?
Kachchh Minerals Ltd Cash conversion cycle is 489 days, above its 5-year historical median of 317 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.12 0.61
ROE (%) 0.93 11.33
ROCE (%) 2.1 8.64
Cash Conversion Cycle 489 days 317 days

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

Q.9 Debt to Equity ratio of Kachchh Minerals Ltd?
Kachchh Minerals Ltd Debt-to-Equity ratio is 0.13, which is above the industry average of 0.12, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Kachchh Minerals Ltd?
Kachchh Minerals Ltd Debt to cash flow from operations is -6.4, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Kachchh Minerals Ltd?

Q.1 Promoter shareholding and pledge status of Kachchh Minerals Ltd?
Promoters hold 41.78% of the Kachchh Minerals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Kachchh Minerals Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Kachchh Minerals Ltd vs industry peers?
Kachchh Minerals Ltd revenue CAGR is -23.68%, compared to the industry median CAGR of 1.53%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -88.9 1.5
Gross Profit Growth (%) -91 14.6
Operating Profit Growth (%) -95.8 15.6
Net Profit Growth (%) -96.8 13.3
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.12 0.44
ROE (%) 0.93 9.11
ROCE (%) 2.1 9.61
Cash Conversion Cycle (days) 488.87 99

Valuation & price assessment

Q.1 Stock return of Kachchh Minerals Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 31.4% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
31.4% 44.4% 6.5% -23.8%
Q.2 Valuation ratios of Kachchh Minerals Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 26.97, indicating that the stock is trading below 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 - 26.97 16.81
Price to Book 15.04 8.29 2.04
Price to Sales - 9.11 6.16
EV to EBITDA -16.73 26.78 7.12

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