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Check Before You Invest : Kunststoffe Industries Ltd

BSE: 523594 NSE: ISIN: INE638D01021
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Plastic Products

Snapshot

Q.1 Which industry/sub-sector does Kunststoffe Industries Ltd belong to?
Kunststoffe Industries Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.
Q.2 Is Kunststoffe Industries Ltd a good quality company?
Kunststoffe Industries 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 Kunststoffe Industries Ltd undervalued or overvalued?
Kunststoffe Industries Ltd appears Somewhat Undervalued, as its key valuation ratios are lower 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 9.9 14.91
Price to Book 1.29 1.99
Price to Sales 1.41 1.42
EV to EBITDA 4.06 6.78
Q.4 Is Kunststoffe Industries Ltd a good buy now?
Kunststoffe Industries 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 Kunststoffe Industries Ltd?
Kunststoffe Industries Ltd revenue growth is -9.5% for FY-2025, which is below its 5-year CAGR of 5.09%, indicating slower growth.

Q.2 Gross Profit margin of Kunststoffe Industries Ltd?
Kunststoffe Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.7% for FY-2025, which is above its 5-year median of 14.8%, indicating increasing margins.

Q.3 Operating Profit Margin of Kunststoffe Industries Ltd?
Kunststoffe Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.67% for FY-2025, which is in line with its 5-year median of 11.67% indicating stable margins.

Q.4 Net Profit Margin of Kunststoffe Industries Ltd?
Kunststoffe Industries Ltd Net Profit Margin is 6.42% for FY-2025, is below its 5-year median of 8.85%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 16.7 14.8
Operating Profit Margin (%) 11.67 11.67
Net Profit Margin (%) 6.42 8.85

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Kunststoffe Industries Ltd?
Kunststoffe Industries Ltd Return on Asset is 5.19%, which is below its 5-year historical median of 8.17%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Kunststoffe Industries Ltd?
Kunststoffe Industries Ltd Return on capital employed is 17.96% for FY-2025, which is in line with its 5-year historical median of 18.34%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Kunststoffe Industries Ltd?
Kunststoffe Industries Ltd Return on equity is 7.39% for FY-2025, which is below its 5-year historical median of 14.75%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Kunststoffe Industries Ltd?
Kunststoffe Industries Ltd Cash conversion cycle is -48 days, in line with its 5-year historical median of -48 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 (x) 0.81 0.99
ROE (%) 7.39 14.75
ROCE (%) 17.96 18.34
Cash Conversion Cycle -48 days -48 days

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

Q.9 Debt to Equity ratio of Kunststoffe Industries Ltd?
Kunststoffe Industries 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 Kunststoffe Industries Ltd?
Kunststoffe Industries Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Kunststoffe Industries Ltd?

Q.1 Promoter shareholding and pledge status of Kunststoffe Industries Ltd?
Promoters hold 29.62% of the Kunststoffe Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Kunststoffe Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Kunststoffe Industries Ltd vs industry peers?
Kunststoffe Industries Ltd revenue CAGR is 5.09%, compared to the industry median CAGR of 4.71%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -9.5 4.7
Gross Profit Growth (%) 6.9 14.3
Operating Profit Growth (%) 2.2 10.1
Net Profit Growth (%) -28.4 18.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.81 1.06
ROE (%) 7.39 5.91
ROCE (%) 17.96 8.75
Cash Conversion Cycle (days) -48.39 77

Valuation & price assessment

Q.1 Stock return of Kunststoffe Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 3.7% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
3.7% 0.7% -1.1% 1.6%
Q.2 Valuation ratios of Kunststoffe Industries Ltd vs historical?
The current P/E ratio of 9.9 is lower than its historical median of 14.91, 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 9.9 14.91 22.05
Price to Book 1.29 1.99 1.89
Price to Sales 1.41 1.42 1.33
EV to EBITDA 4.06 6.78 10.86

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