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Check Before You Invest : Oriental Trimex Ltd

BSE: 532817 NSE: ORIENTALTL ISIN: INE998H01012
  |   Sector:  Construction & Infrastructure   |   Industry:  Ceramics/Marble/Granite/Sanitaryware

Snapshot

Q.1 Which industry/sub-sector does Oriental Trimex Ltd belong to?
Oriental Trimex Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Ceramics/Marble/Granite/Sanitaryware segment.
Q.2 Is Oriental Trimex Ltd a good quality company?
Oriental Trimex Ltd is a quality company, based on a 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 Oriental Trimex Ltd undervalued or overvalued?
Oriental Trimex 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 8.04 -
Price to Book 0.57 0.70
Price to Sales 2.17 2.43
EV to EBITDA 5.21 -4.16
Q.4 Is Oriental Trimex Ltd a good buy now?
Oriental Trimex 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 Oriental Trimex Ltd?
Oriental Trimex Ltd revenue growth is 475.9% for FY-2025, which is above its 5-year CAGR of -22.43%, indicating faster growth.

Q.2 Gross Profit margin of Oriental Trimex Ltd?
Oriental Trimex Ltd Gross profit margin which is the profit after deduction of direct costs, is -24.3% for FY-2025, which is in line with its 5-year median of -24.3%, indicating stable margins.

Q.3 Operating Profit Margin of Oriental Trimex Ltd?
Oriental Trimex Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -23.4% for FY-2025, which is in line with its 5-year median of -23.4% indicating stable margins.

Q.4 Net Profit Margin of Oriental Trimex Ltd?
Oriental Trimex Ltd Net Profit Margin is 40.75% for FY-2025, is above its 5-year median of -31.65%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -24.3 -24.3
Operating Profit Margin (%) -23.4 -23.4
Net Profit Margin (%) 40.75 -31.65

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Oriental Trimex Ltd?
Oriental Trimex Ltd Return on Asset is 7.6%, which is above its 5-year historical median of -3.72%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Oriental Trimex Ltd?
Oriental Trimex Ltd Return on capital employed is 15.69% for FY-2025, which is above its 5-year historical median of -0.06%. 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 Oriental Trimex Ltd?
Oriental Trimex Ltd Return on equity is 13.73% for FY-2025, which is above its 5-year historical median of -10.33%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Oriental Trimex Ltd?
Oriental Trimex Ltd Cash conversion cycle is 801 days, below its 5-year historical median of 1227 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) 0.19 0.14
ROE (%) 13.73 -10.33
ROCE (%) 15.69 -0.06
Cash Conversion Cycle 801 days 1227 days

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

Q.9 Debt to Equity ratio of Oriental Trimex Ltd?
Oriental Trimex Ltd Debt-to-Equity ratio is 0.03, which is lower the industry average of 0.32, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Oriental Trimex Ltd?
Oriental Trimex Ltd Debt to cash flow from operations is -0.03, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Oriental Trimex Ltd?

Q.1 Promoter shareholding and pledge status of Oriental Trimex Ltd?
Promoters hold 27.21% of the Oriental Trimex Ltd, with 12.50% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Oriental Trimex Ltd vs industry peers?
Oriental Trimex Ltd revenue CAGR is -22.43%, compared to the industry median CAGR of 0.00%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 475.9 0
Gross Profit Growth (%) 0 9
Operating Profit Growth (%) 0 1.1
Net Profit Growth (%) 0 15.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.19 0.55
ROE (%) 13.73 2.33
ROCE (%) 15.69 5.52
Cash Conversion Cycle (days) 800.58 187

Valuation & price assessment

Q.1 Stock return of Oriental Trimex Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -4.9% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-4.9% 4.5% 6.3% -35.9%
Q.2 Valuation ratios of Oriental Trimex Ltd vs historical?
The current P/E ratio of 8.04 is higher than its historical median of , 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 8.04 - 24.16
Price to Book 0.57 0.70 0.90
Price to Sales 2.17 2.43 1.28
EV to EBITDA 5.21 -4.16 10.79

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