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Check Before You Invest : Master Components Ltd

BSE: 0 NSE: MASTER ISIN: INE0OJM01017
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Plastic Products

Snapshot

Q.1 Which industry/sub-sector does Master Components Ltd belong to?
Master Components Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.
Q.2 Is Master Components Ltd a good quality company?
Master Components 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 Master Components Ltd undervalued or overvalued?
Master Components 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 18.27 25.25
Price to Book 4.61 4.34
Price to Sales 1.83 3.05
EV to EBITDA 11.12 18.80
Q.4 Is Master Components Ltd a good buy now?
Master Components 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 Master Components Ltd?
Master Components Ltd revenue growth is 67.7% for FY-2025, which is above its 5-year CAGR of 23.03%, indicating faster growth.

Q.2 Gross Profit margin of Master Components Ltd?
Master Components Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.8% for FY-2025, which is in line with its 5-year median of 15.7%, indicating stable margins.

Q.3 Operating Profit Margin of Master Components Ltd?
Master Components Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.32% for FY-2025, which is in line with its 5-year median of 15.32% indicating stable margins.

Q.4 Net Profit Margin of Master Components Ltd?
Master Components Ltd Net Profit Margin is 15.31% for FY-2025, is above its 5-year median of 8.26%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 15.8 15.7
Operating Profit Margin (%) 15.32 15.32
Net Profit Margin (%) 15.31 8.26

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Master Components Ltd?
Master Components Ltd Return on Asset is 18.72%, which is above its 5-year historical median of 10.88%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Master Components Ltd?
Master Components Ltd Return on capital employed is 31.49% for FY-2025, which is above its 5-year historical median of 20.45%. 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 Master Components Ltd?
Master Components Ltd Return on equity is 24.74% for FY-2025, which is above its 5-year historical median of 15.44%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Master Components Ltd?
Master Components Ltd Cash conversion cycle is 67 days, below its 5-year historical median of 85 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) 1.22 1.22
ROE (%) 24.74 15.44
ROCE (%) 31.49 20.45
Cash Conversion Cycle 67 days 85 days

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

Q.9 Debt to Equity ratio of Master Components Ltd?
Master Components Ltd Debt-to-Equity ratio is 0.14, which is lower the industry average of 0.25, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Master Components Ltd?
Master Components Ltd Debt to cash flow from operations is 2.38, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Master Components Ltd?

Q.1 Promoter shareholding and pledge status of Master Components Ltd?
Promoters hold 67.10% of the Master Components Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Master Components Ltd vs industry peers?
Master Components Ltd revenue CAGR is 23.03%, compared to the industry median CAGR of 4.71%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 67.7 4.7
Gross Profit Growth (%) 40 14.3
Operating Profit Growth (%) 50 10.1
Net Profit Growth (%) 100 18.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.22 1.06
ROE (%) 24.74 5.91
ROCE (%) 31.49 8.75
Cash Conversion Cycle (days) 66.58 77

Valuation & price assessment

Q.1 Stock return of Master Components Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -0.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -0.1%
Q.2 Valuation ratios of Master Components Ltd vs historical?
The current P/E ratio of 18.27 is lower than its historical median of 25.25, indicating that the stock is trading below 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 18.27 25.25 22.05
Price to Book 4.61 4.34 1.89
Price to Sales 1.83 3.05 1.33
EV to EBITDA 11.12 18.80 10.86

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