Check Before You Invest : Madras Fertilizers Ltd

Q: Which industry/sub-sector does Madras Fertilizers Ltd belong to?

Madras Fertilizers Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Fertilizers segment.

Q: Is Madras Fertilizers Ltd a good quality company?

Madras Fertilizers Ltd is a average quality company, based on a somewhat consistent 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: Is Madras Fertilizers Ltd undervalued or overvalued?

Madras Fertilizers 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. Price to Earnings, Current: 158.19, Historic Median: 10.19. Price to Book, Current: 42.82, Historic Median: -2.79. Price to Sales, Current: 0.52, Historic Median: 0.42. EV to EBITDA, Current: 12.09, Historic Median: 9.98

Q: Is Madras Fertilizers Ltd a good buy now?

Madras Fertilizers Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Madras Fertilizers Ltd?

Madras Fertilizers Ltd revenue growth is 14.1% for FY-2025, which is in line with its 5-year CAGR of 14.49%, indicating stable growth.

Q: Gross Profit margin of Madras Fertilizers Ltd?

Madras Fertilizers Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.1% for FY-2025, which is in line with its 5-year median of 4.1%, indicating stable margins.

Q: Operating Profit Margin of Madras Fertilizers Ltd?

Madras Fertilizers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.99% for FY-2025, which is below its 5-year median of 8.8% indicating decreasing margins.

Q: Net Profit Margin of Madras Fertilizers Ltd?

Madras Fertilizers Ltd Net Profit Margin is 2.53% for FY-2025, is in line with its 5-year median of 2.53%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 4.1, Historic Median: 4.1. Operating Profit Margin (%), Current: 4.99, Historic Median: 8.8. Net Profit Margin (%), Current: 2.53, Historic Median: 2.53

Q: Return on Asset of Madras Fertilizers Ltd?

Madras Fertilizers Ltd Return on Asset is 3.01%, which is in line with its 5-year historical median of 3.01%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Madras Fertilizers Ltd?

Madras Fertilizers Ltd Return on capital employed is 27.7% for FY-2025, which is below its 5-year historical median of 46.5%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Madras Fertilizers Ltd

Snapshot

Q.1 Which industry/sub-sector does Madras Fertilizers Ltd belong to?

Madras Fertilizers Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Fertilizers segment.

Q.2 Is Madras Fertilizers Ltd a good quality company?

Madras Fertilizers Ltd is a average quality company, based on a somewhat consistent 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 Madras Fertilizers Ltd undervalued or overvalued?

Madras Fertilizers 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	158.19	10.19
Price to Book	42.82	-2.79
Price to Sales	0.52	0.42
EV to EBITDA	12.09	9.98

Q.4 Is Madras Fertilizers Ltd a good buy now?

Madras Fertilizers Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Madras Fertilizers Ltd?

Madras Fertilizers Ltd revenue growth is 14.1% for FY-2025, which is in line with its 5-year CAGR of 14.49%, indicating stable growth.

Q.2 Gross Profit margin of Madras Fertilizers Ltd?

Madras Fertilizers Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.1% for FY-2025, which is in line with its 5-year median of 4.1%, indicating stable margins.

Q.3 Operating Profit Margin of Madras Fertilizers Ltd?

Madras Fertilizers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.99% for FY-2025, which is below its 5-year median of 8.8% indicating decreasing margins.

Q.4 Net Profit Margin of Madras Fertilizers Ltd?

Madras Fertilizers Ltd Net Profit Margin is 2.53% for FY-2025, is in line with its 5-year median of 2.53%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	4.1	4.1
Operating Profit Margin (%)	4.99	8.8
Net Profit Margin (%)	2.53	2.53

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Madras Fertilizers Ltd?

Madras Fertilizers Ltd Return on Asset is 3.01%, which is in line with its 5-year historical median of 3.01%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Madras Fertilizers Ltd?

Madras Fertilizers Ltd Return on capital employed is 27.7% for FY-2025, which is below its 5-year historical median of 46.5%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Cash conversion cycle of Madras Fertilizers Ltd?

Madras Fertilizers Ltd Cash conversion cycle is 30 days, below its 5-year historical median of 71 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

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

Q.8 Debt to Equity ratio of Madras Fertilizers Ltd?

Madras Fertilizers Ltd Debt-to-Equity ratio is -20.56, which is lower the industry average of 0.41, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of Madras Fertilizers Ltd?

Madras Fertilizers Ltd Debt to cash flow from operations is 5.71, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Madras Fertilizers Ltd?

Q.1 Promoter shareholding and pledge status of Madras Fertilizers Ltd?

Promoters hold 85.27% of the Madras Fertilizers Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Madras Fertilizers Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Madras Fertilizers Ltd vs industry peers?

Madras Fertilizers Ltd revenue CAGR is 14.49%, compared to the industry median CAGR of 8.22%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	14.1	8.2
Gross Profit Growth (%)	43.1	13.5
Operating Profit Growth (%)	23.3	7
Net Profit Growth (%)	966.7	14.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.19	1.19
ROE (%)	-	7.02
ROCE (%)	27.7	9.34
Cash Conversion Cycle (days)	29.99	68

Valuation & price assessment

Q.1 Stock return of Madras Fertilizers Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 17.5% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	17.5%	18.7%	-2.2%	-15.6%

Q.2 Valuation ratios of Madras Fertilizers Ltd vs historical?

The current P/E ratio of 158.19 is higher than its historical median of 10.19, 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	158.19	10.19	13.55
Price to Book	42.82	-2.79	1.43
Price to Sales	0.52	0.42	0.63
EV to EBITDA	12.09	9.98	7.82

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Check Before You Invest : Madras Fertilizers Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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