Check Before You Invest : Shree Oswal Seeds and Chemicals Ltd

Snapshot

Q.1 Which industry/sub-sector does Shree Oswal Seeds and Chemicals Ltd belong to?

Shree Oswal Seeds and Chemicals Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Agriculture segment.

Q.2 Is Shree Oswal Seeds and Chemicals Ltd a good quality company?

Shree Oswal Seeds and Chemicals Ltd is a weak quality company, based on a inconsistent 8-year financial track record.

Q.3 Is Shree Oswal Seeds and Chemicals Ltd undervalued or overvalued?

Shree Oswal Seeds and Chemicals Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Shree Oswal Seeds and Chemicals Ltd a good buy now?

Shree Oswal Seeds and Chemicals 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 Shree Oswal Seeds and Chemicals Ltd?

Shree Oswal Seeds and Chemicals Ltd revenue growth is -3.4% for FY-2025, which is below its 5-year CAGR of 9.26%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Shree Oswal Seeds and Chemicals Ltd?

Shree Oswal Seeds and Chemicals Ltd Return on capital employed is 9.2% for FY-2025, which is below its 5-year historical median of 10.85%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Shree Oswal Seeds and Chemicals Ltd?

Shree Oswal Seeds and Chemicals Ltd Return on Asset is 3.99%, which is below its 5-year historical median of 4.54%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Shree Oswal Seeds and Chemicals Ltd?

Shree Oswal Seeds and Chemicals Ltd Return on equity is 6.64% for FY-2025, which is below its 5-year historical median of 9.6%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Shree Oswal Seeds and Chemicals Ltd?

Shree Oswal Seeds and Chemicals Ltd Cash conversion cycle is 103 days, below its 5-year historical median of 153 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	1.36	1.25
ROE	6.64	9.6
ROCE	9.2	10.85
Cash Conversion Cycle	103 days	153 days

Q.6 Gross Profit margin of Shree Oswal Seeds and Chemicals Ltd?

Shree Oswal Seeds and Chemicals Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.5% for FY-2025, which is below its 5-year median of 5.6%, indicating decreasing margins.

Q.7 Operating Profit Margin of Shree Oswal Seeds and Chemicals Ltd?

Shree Oswal Seeds and Chemicals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.42% for FY-2025, which is below its 5-year median of 3.94% indicating decreasing margins.

Q.8 Net Profit Margin of Shree Oswal Seeds and Chemicals Ltd?

Shree Oswal Seeds and Chemicals Ltd Net Profit Margin is 2.93% for FY-2025, is below with its 5-year median of 3.87%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	4.5	5.6
Operating Profit Margin	3.42	3.94
Net Profit Margin	2.93	3.87

Q.9 Debt to Equity ratio of Shree Oswal Seeds and Chemicals Ltd?

Shree Oswal Seeds and Chemicals Ltd Debt-to-Equity ratio is 0.24, which is lower with the industry average of 0.32, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Shree Oswal Seeds and Chemicals Ltd?

Shree Oswal Seeds and Chemicals Ltd Debt to cash flow from operations is -1.93, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Shree Oswal Seeds and Chemicals Ltd?

Promoters hold 66.63% of the Shree Oswal Seeds and Chemicals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Shree Oswal Seeds and Chemicals Ltd vs industry peers?

Shree Oswal Seeds and Chemicals Ltd revenue CAGR is 9.26%, compared to the industry median CAGR of 5.31%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-3.4	5.3
Gross Profit Growth	33.3	3
Operating Profit Growth	-	0.9
Net Profit Growth	50	4.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.36	0.79
ROE	6.64	8.2
ROCE	9.2	8.34
Cash Conversion Cycle (days)	102.82	82

Valuation & price assessment

Q.1 Stock return of Shree Oswal Seeds and Chemicals Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of -20.1% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-20.1%	-68.3%	-12.6%

Q.3 Valuation ratios of Shree Oswal Seeds and Chemicals Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	30.82	71.01	19.69
Price to Book	2.28	4.90	1.88
Price to Sales	1.05	2.15	2.05
EV to EBITDA	19.04	39.28	12.86

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