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Check Before You Invest : Madras Fertilizers Ltd

BSE: 590134 NSE: MADRASFERT ISIN: INE414A01015
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Fertilizers

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 10 year financial track record.
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.
Q.4 Is Madras Fertilizers Ltd a good buy now?
Madras Fertilizers Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Madras Fertilizers Ltd?
Madras Fertilizers Ltd revenue growth is 14.1% for FY-2025 , which is below its 5 year CAGR of 14.5% , indicating slower 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 with its 5 year median of 2.53%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 4.1 4.1
Operating Profit Margin 4.99 8.8
Net Profit Margin 2.53 2.53
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 Equity (ROE) of Madras Fertilizers Ltd?
Madras Fertilizers Ltd Return on equity is 0% for FY-2025 , which is in line with its historical median of 0%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Madras Fertilizers Ltd?
Madras Fertilizers Ltd Return on capital employed is 27.7% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Madras Fertilizers Ltd?
Madras Fertilizers Ltd Cash conversion cycle is 30 days, below its historical median of 71 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.19 1.19
ROE - -
ROCE 27.7 46.5
Cash Conversion Cycle 30 days 71 days
Q.9 Debt to Equity ratio of Madras Fertilizers Ltd?
Madras Fertilizers Ltd Debt-to-Equity ratio is -20.56 , which is lower with the industry average of 0.41 , indicating lower debt levels in the industry.
Q.10 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

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)

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 Industry Median
Revenue 2,541.9 469.9
Gross Profit 104.2 20.4
Operating Profit 127 28
Net Profit 64 13
Operating Efficiency
Current Level Industry Median
Asset Turnover 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 18% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 18% 23.5% 0.2% -13.2%
Q.3 Valuation ratios of Madras Fertilizers 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 154.94 0.00 21.04
Price to Book 41.94 0.00 1.44
Price to Sales 0.51 0.21 0.61
EV to EBITDA 11.83 34.60 7.51

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