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INVESTMENT INSIGHTS

Check Before You Invest : Machhar Industries Ltd

BSE: 543934 NSE: ISIN: INE01BT01015
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Chemicals

Snapshot

Q.1 Which industry/sub-sector does Machhar Industries Ltd belong to?
Machhar Industries Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.
Q.2 Is Machhar Industries Ltd a good quality company?
Machhar Industries Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Machhar Industries Ltd undervalued or overvalued?
Machhar Industries Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Machhar Industries Ltd a good buy now?
Machhar 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

Q.1 Revenue growth of Machhar Industries Ltd?
Machhar Industries Ltd revenue growth is -7.4% for FY-2025 , which is below its 5 year CAGR of -3.1% , indicating slower growth.
Q.2 Gross Profit margin of Machhar Industries Ltd?
Machhar Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.9% for FY-2025 , which is below its 5 year median of 7.6% , indicating decreasing margins.
Q.3 Operating Profit Margin of Machhar Industries Ltd?
Machhar Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.01% for FY-2025 , which is below its 5 year median of 4.84% indicating decreasing margins.
Q.4 Net Profit Margin of Machhar Industries Ltd?
Machhar Industries Ltd Net Profit Margin is 0.98% for FY-2025 , is below with its 5 year median of 3.78%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 3.9 7.6
Operating Profit Margin 3.01 4.84
Net Profit Margin 0.98 3.78
Q.5 Return on Asset of Machhar Industries Ltd?
Machhar Industries Ltd Return on Asset is 1.24%, which is below its 5 year historical median of 4.73%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Machhar Industries Ltd?
Machhar Industries Ltd Return on equity is 1.67% for FY-2025 , which is below its historical median of 6.2%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Machhar Industries Ltd?
Machhar Industries Ltd Return on capital employed is 4.07% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Machhar Industries Ltd?
Machhar Industries Ltd Cash conversion cycle is 39 days, above its historical median of -2 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.26 1.18
ROE 1.67 6.2
ROCE 4.07 8.71
Cash Conversion Cycle 39 days -2 days
Q.9 Debt to Equity ratio of Machhar Industries Ltd?
Machhar Industries Ltd Debt-to-Equity ratio is 0.26 , which is above with the industry average of 0.13 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Machhar Industries Ltd?
Machhar Industries Ltd Debt to cash flow from operations is 12.18 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Machhar Industries Ltd?
Promoters hold 50.52% of the Machhar Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Machhar Industries Ltd vs industry peers?
Machhar Industries Ltd revenue CAGR is -3.14% , compared to the industry median CAGR of 7.7% , indicating stable growth and maintaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 15.7 202
Gross Profit 0.6 23.6
Operating Profit 0.5 24
Net Profit 0.2 12
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.26 0.93
ROE 1.67 10.18
ROCE 4.07 13.07
Cash Conversion Cycle (days) 39.06 62

Valuation & price assessment

Q.1 Stock return of Machhar Industries Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 37.07% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - - 37.1%
Q.3 Valuation ratios of Machhar Industries 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 50.64 40.40 41.15
Price to Book 2.63 2.25 2.38
Price to Sales 1.68 16.24 1.93
EV to EBITDA 17.84 0.00 13.71

Check more companies

1. Navin Fluorine Intl
2. Godrej Industries
3. Deepak Nitrite
4. Atul
5. Tata Chemicals
6. BASF India
7. Aarti Inds
8. Aether Industries
9. Deepak Fert & Petro
10. Fine Organic Inds.
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