SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Marsons Ltd

BSE: 517467 NSE: MARSONS ISIN: INE415B01044
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Electric Equipment

Snapshot

Q.1 Which industry/sub-sector does Marsons Ltd belong to?
Marsons Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.
Q.2 Is Marsons Ltd a good quality company?
Marsons Ltd is a weak quality company, based on a inconsistent 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 Marsons Ltd undervalued or overvalued?
Marsons Ltd appears Undervalued, as its key valuation ratios are lower than 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 84.66 24.95
Price to Book 18.93 19.41
Price to Sales 13.27 30.72
EV to EBITDA 80.69 67.23
Q.4 Is Marsons Ltd a good buy now?
Marsons 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 Marsons Ltd?
Marsons Ltd revenue growth is 2,506.2% for FY-2025, which is above its 5-year CAGR of NA%, indicating faster growth.

Q.2 Gross Profit margin of Marsons Ltd?
Marsons Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.9% for FY-2025, which is in line with its 5-year median of 16.9%, indicating stable margins.

Q.3 Operating Profit Margin of Marsons Ltd?
Marsons Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.98% for FY-2025, which is in line with its 5-year median of 14.98% indicating stable margins.

Q.4 Net Profit Margin of Marsons Ltd?
Marsons Ltd Net Profit Margin is 16.64% for FY-2025, is above its 5-year median of 9.73%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 16.9 16.9
Operating Profit Margin (%) 14.98 14.98
Net Profit Margin (%) 16.64 9.73

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Marsons Ltd?
Marsons Ltd Return on Asset is 30.78%, which is above its 5-year historical median of 2.37%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Marsons Ltd?
Marsons Ltd Return on capital employed is 38.05% for FY-2025, which is above its 5-year historical median of 3.2%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Marsons Ltd?
Marsons Ltd Return on equity is 40.99% for FY-2025, which is above its 5-year historical median of 7.29%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Marsons Ltd?
Marsons Ltd Cash conversion cycle is 74 days, below its 5-year historical median of 585 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.85 0.2
ROE (%) 40.99 7.29
ROCE (%) 38.05 3.2
Cash Conversion Cycle 74 days 585 days

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

Q.9 Debt to Equity ratio of Marsons Ltd?
Marsons Ltd Debt-to-Equity ratio is 0.02, which is lower the industry average of 0.29, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Marsons Ltd?
Marsons Ltd Debt to cash flow from operations is -0.07, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Marsons Ltd?

Q.1 Promoter shareholding and pledge status of Marsons Ltd?
Promoters hold 53.65% of the Marsons Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Marsons Ltd vs industry peers?
Marsons Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 13.19%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 2 13.2
Gross Profit Growth (%) 2,700 27.9
Operating Profit Growth (%) 2,400 28.4
Net Profit Growth (%) 2,700 28.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.85 1.05
ROE (%) 40.99 9.8
ROCE (%) 38.05 13.56
Cash Conversion Cycle (days) 73.85 99

Valuation & price assessment

Q.1 Stock return of Marsons Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 30.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
30.5% 69.5% 198.5% -7.4%
Q.2 Valuation ratios of Marsons Ltd vs historical?
The current P/E ratio of 84.66 is higher than its historical median of 24.95, 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 84.66 24.95 38.08
Price to Book 18.93 19.41 3.97
Price to Sales 13.27 30.72 2.75
EV to EBITDA 80.69 67.23 18.75

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×