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INVESTMENT INSIGHTS

Check Before You Invest : Laffans Petrochemicals Ltd

BSE: 524522 NSE: ISIN: INE919B01011
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Laffans Petrochemicals Ltd belong to?
Laffans Petrochemicals Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Laffans Petrochemicals Ltd a good quality company?
Laffans Petrochemicals Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Laffans Petrochemicals Ltd undervalued or overvalued?
Laffans Petrochemicals Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Laffans Petrochemicals Ltd a good buy now?
Laffans Petrochemicals 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 Laffans Petrochemicals Ltd?
Laffans Petrochemicals Ltd revenue growth is 34.7% for FY-2025 , which is above its 5 year CAGR of -7.7% , indicating faster growth.
Q.2 Gross Profit margin of Laffans Petrochemicals Ltd?
Laffans Petrochemicals Ltd Gross profit margin which is the profit after deduction of direct costs, is 39.4% for FY-2025 , which is above its 5 year median of 36.1% , indicating increasing margins.
Q.3 Operating Profit Margin of Laffans Petrochemicals Ltd?
Laffans Petrochemicals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -29.18% for FY-2025 , which is below its 5 year median of -24.49% indicating decreasing margins.
Q.4 Net Profit Margin of Laffans Petrochemicals Ltd?
Laffans Petrochemicals Ltd Net Profit Margin is 24.55% for FY-2025 , is above with its 5 year median of 19.85%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 39.4 36.1
Operating Profit Margin -29.18 -24.49
Net Profit Margin 24.55 19.85
Q.5 Return on Asset of Laffans Petrochemicals Ltd?
Laffans Petrochemicals Ltd Return on Asset is 3%, which is in line with its 5 year historical median of 3%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Laffans Petrochemicals Ltd?
Laffans Petrochemicals Ltd Return on equity is 3.2% for FY-2025 , which is in line with its historical median of 3.2%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Laffans Petrochemicals Ltd?
Laffans Petrochemicals Ltd Return on capital employed is 4.2% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Laffans Petrochemicals Ltd?
Laffans Petrochemicals Ltd Cash conversion cycle is 21 days, above its historical median of 3 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.12 0.26
ROE 3.2 3.2
ROCE 4.2 4.2
Cash Conversion Cycle 21 days 3 days
Q.9 Debt to Equity ratio of Laffans Petrochemicals Ltd?
Laffans Petrochemicals Ltd Debt-to-Equity ratio is 0.01 , which is lower with the industry average of 0.03 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Laffans Petrochemicals Ltd?
Laffans Petrochemicals Ltd Debt to cash flow from operations is -0.07 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Laffans Petrochemicals Ltd?
Promoters hold 57.32% of the Laffans Petrochemicals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Laffans Petrochemicals Ltd vs industry peers?
Laffans Petrochemicals Ltd revenue CAGR is -7.70% , compared to the industry median CAGR of 0% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 8.2 13.3
Gross Profit 3.2 0.4
Operating Profit -2.4 0
Net Profit 2 0.3
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.12 0.5
ROE 3.2 2.03
ROCE 4.2 3.6
Cash Conversion Cycle (days) 20.87 41

Valuation & price assessment

Q.1 Stock return of Laffans Petrochemicals Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 15.4% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 15.4% 13.5% -5.5% -11.9%
Q.3 Valuation ratios of Laffans Petrochemicals 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 20.2 4.73 21.75
Price to Book 0.37 0.26 1.55
Price to Sales 5.72 0.95 1.87
EV to EBITDA 12.17 2.51 13.67

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