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Check Before You Invest : Link Pharma Chem Ltd

BSE: 524748 NSE: ISIN: INE302F01011
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Chemicals

Snapshot

Q.1 Which industry/sub-sector does Link Pharma Chem Ltd belong to?
Link Pharma Chem Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.
Q.2 Is Link Pharma Chem Ltd a good quality company?
Link Pharma Chem 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 Link Pharma Chem Ltd undervalued or overvalued?
Link Pharma Chem 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 99.02 11.21
Price to Book 1.01 1.28
Price to Sales 0.49 0.54
EV to EBITDA 12.14 7.88
Q.4 Is Link Pharma Chem Ltd a good buy now?
Link Pharma Chem 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 Link Pharma Chem Ltd?
Link Pharma Chem Ltd revenue growth is -15% for FY-2025, which is below its 5-year CAGR of -0.03%, indicating slower growth.

Q.2 Gross Profit margin of Link Pharma Chem Ltd?
Link Pharma Chem Ltd Gross profit margin which is the profit after deduction of direct costs, is -1.8% for FY-2025, which is below its 5-year median of 4.7%, indicating decreasing margins.

Q.3 Operating Profit Margin of Link Pharma Chem Ltd?
Link Pharma Chem Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0.51% for FY-2025, which is below its 5-year median of 6.54% indicating decreasing margins.

Q.4 Net Profit Margin of Link Pharma Chem Ltd?
Link Pharma Chem Ltd Net Profit Margin is -4.04% for FY-2025, is below its 5-year median of 1.69%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -1.8 4.7
Operating Profit Margin (%) 0.51 6.54
Net Profit Margin (%) -4.04 1.69

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Link Pharma Chem Ltd?
Link Pharma Chem Ltd Return on Asset is -4.19%, which is below its 5-year historical median of 2.13%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Link Pharma Chem Ltd?
Link Pharma Chem Ltd Return on capital employed is -3.03% for FY-2025, which is below its 5-year historical median of 7.38%. 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 Link Pharma Chem Ltd?
Link Pharma Chem Ltd Return on equity is -7.79% for FY-2025, which is below its 5-year historical median of 4.43%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Link Pharma Chem Ltd?
Link Pharma Chem Ltd Cash conversion cycle is 117 days, above its 5-year historical median of 68 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) 1.04 1.26
ROE (%) -7.79 4.43
ROCE (%) -3.03 7.38
Cash Conversion Cycle 117 days 68 days

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

Q.9 Debt to Equity ratio of Link Pharma Chem Ltd?
Link Pharma Chem Ltd Debt-to-Equity ratio is 0.46, which is above the industry average of 0.13, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Link Pharma Chem Ltd?
Link Pharma Chem Ltd Debt to cash flow from operations is 2.15, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Link Pharma Chem Ltd?

Q.1 Promoter shareholding and pledge status of Link Pharma Chem Ltd?
Promoters hold 52.40% of the Link Pharma Chem Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Link Pharma Chem Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Link Pharma Chem Ltd vs industry peers?
Link Pharma Chem Ltd revenue CAGR is -0.03%, compared to the industry median CAGR of 7.53%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -15 7.5
Gross Profit Growth (%) 0 12.1
Operating Profit Growth (%) 0 11.7
Net Profit Growth (%) 0 9.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.04 0.93
ROE (%) -7.79 10.17
ROCE (%) -3.03 12.96
Cash Conversion Cycle (days) 117.21 62

Valuation & price assessment

Q.1 Stock return of Link Pharma Chem Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 14.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
14.5% -1.7% -9.3% -15.3%
Q.2 Valuation ratios of Link Pharma Chem Ltd vs historical?
The current P/E ratio of 99.02 is higher than its historical median of 11.21, 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 99.02 11.21 28.17
Price to Book 1.01 1.28 2.22
Price to Sales 0.49 0.54 1.93
EV to EBITDA 12.14 7.88 14.20

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