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Check Before You Invest : Kaiser Corporation Ltd

BSE: 531780 NSE: ISIN: INE229G01022
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Plastic Products

Snapshot

Q.1 Which industry/sub-sector does Kaiser Corporation Ltd belong to?
Kaiser Corporation Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.
Q.2 Is Kaiser Corporation Ltd a good quality company?
Kaiser Corporation 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 Kaiser Corporation Ltd undervalued or overvalued?
Kaiser Corporation Ltd appears Fair, as its key valuation ratios are in line with 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 450.28 -
Price to Book 7.25 11.80
Price to Sales 44.58 92.24
EV to EBITDA 358.94 943.27
Q.4 Is Kaiser Corporation Ltd a good buy now?
Kaiser Corporation 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 Kaiser Corporation Ltd?
Kaiser Corporation Ltd revenue growth is 15% for FY-2025, which is above its 5-year CAGR of 0.89%, indicating faster growth.

Q.2 Gross Profit margin of Kaiser Corporation Ltd?
Kaiser Corporation Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.2% for FY-2025, which is above its 5-year median of 8.7%, indicating increasing margins.

Q.3 Operating Profit Margin of Kaiser Corporation Ltd?
Kaiser Corporation Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.81% for FY-2025, which is in line with its 5-year median of 4.81% indicating stable margins.

Q.4 Net Profit Margin of Kaiser Corporation Ltd?
Kaiser Corporation Ltd Net Profit Margin is 8.77% for FY-2025, is above its 5-year median of 6.68%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 10.2 8.7
Operating Profit Margin (%) 4.81 4.81
Net Profit Margin (%) 8.77 6.68

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Kaiser Corporation Ltd?
Kaiser Corporation Ltd Return on Asset is 1.24%, which is above its 5-year historical median of 0.76%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Kaiser Corporation Ltd?
Kaiser Corporation Ltd Return on capital employed is 1.42% for FY-2025, which is above its 5-year historical median of 1.17%. 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 Kaiser Corporation Ltd?
Kaiser Corporation Ltd Return on equity is 1.26% for FY-2025, which is above its 5-year historical median of 0.79%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Kaiser Corporation Ltd?
Kaiser Corporation Ltd Cash conversion cycle is 54 days, below its 5-year historical median of 114 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.14 0.12
ROE (%) 1.26 0.79
ROCE (%) 1.42 1.17
Cash Conversion Cycle 54 days 114 days

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

Q.9 Debt to Equity ratio of Kaiser Corporation Ltd?
Kaiser Corporation Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.25, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Kaiser Corporation Ltd?
Kaiser Corporation Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Kaiser Corporation Ltd?

Q.1 Promoter shareholding and pledge status of Kaiser Corporation Ltd?
Promoters hold 26.60% of the Kaiser Corporation Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Kaiser Corporation Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Kaiser Corporation Ltd vs industry peers?
Kaiser Corporation Ltd revenue CAGR is 0.89%, compared to the industry median CAGR of 4.71%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 15 4.7
Gross Profit Growth (%) 16.7 14.3
Operating Profit Growth (%) -25 10.1
Net Profit Growth (%) - 18.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.14 1.06
ROE (%) 1.26 5.91
ROCE (%) 1.42 8.75
Cash Conversion Cycle (days) 54.03 77

Valuation & price assessment

Q.1 Stock return of Kaiser Corporation Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 7.8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
7.8% 80% -38.8% -2.2%
Q.2 Valuation ratios of Kaiser Corporation Ltd vs historical?
The current P/E ratio of 450.28 is higher than its historical median of , indicating that the stock is trading above 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 450.28 - 22.05
Price to Book 7.25 11.80 1.89
Price to Sales 44.58 92.24 1.33
EV to EBITDA 358.94 943.27 10.86

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