Check Before You Invest : Permanent Magnets Ltd

Snapshot

Q.1 Which industry/sub-sector does Permanent Magnets Ltd belong to?

Permanent Magnets Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.

Q.2 Is Permanent Magnets Ltd a good quality company?

Permanent Magnets Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Permanent Magnets Ltd undervalued or overvalued?

Permanent Magnets Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Permanent Magnets Ltd a good buy now?

Permanent Magnets 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

Q.1 Revenue growth of Permanent Magnets Ltd?

Permanent Magnets Ltd revenue growth is -1% for FY-2025, which is below its 5-year CAGR of 13.37%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Permanent Magnets Ltd?

Permanent Magnets Ltd Return on capital employed is 15.11% for FY-2025, which is below its 5-year historical median of 35.09%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Permanent Magnets Ltd?

Permanent Magnets Ltd Return on Asset is 8.24%, which is below its 5-year historical median of 18.43%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Permanent Magnets Ltd?

Permanent Magnets Ltd Return on equity is 10.9% for FY-2025, which is below its 5-year historical median of 26.04%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Permanent Magnets Ltd?

Permanent Magnets Ltd Cash conversion cycle is 121 days, above its 5-year historical median of 107 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.08	1.25
ROE	10.9	26.04
ROCE	15.11	35.09
Cash Conversion Cycle	121 days	107 days

Q.6 Gross Profit margin of Permanent Magnets Ltd?

Permanent Magnets Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.8% for FY-2025, which is below its 5-year median of 21.5%, indicating decreasing margins.

Q.7 Operating Profit Margin of Permanent Magnets Ltd?

Permanent Magnets Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.67% for FY-2025, which is below its 5-year median of 20.68% indicating decreasing margins.

Q.8 Net Profit Margin of Permanent Magnets Ltd?

Permanent Magnets Ltd Net Profit Margin is 7.6% for FY-2025, is below with its 5-year median of 13.83%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	14.8	21.5
Operating Profit Margin	13.67	20.68
Net Profit Margin	7.6	13.83

Q.9 Debt to Equity ratio of Permanent Magnets Ltd?

Permanent Magnets Ltd Debt-to-Equity ratio is 0.08, which is lower with the industry average of 0.51, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Permanent Magnets Ltd?

Permanent Magnets Ltd Debt to cash flow from operations is 0.32, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Permanent Magnets Ltd?

Promoters hold 58.01% of the Permanent Magnets Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Permanent Magnets Ltd vs industry peers?

Permanent Magnets Ltd revenue CAGR is 13.37%, compared to the industry median CAGR of 16.95%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-1	17
Gross Profit Growth	-21.1	27.6
Operating Profit Growth	-22.9	NAN
Net Profit Growth	-34.8	28.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.08	1.06
ROE	10.9	10.12
ROCE	15.11	13.84
Cash Conversion Cycle (days)	120.73	104

Valuation & price assessment

Q.1 Stock return of Permanent Magnets Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 50.7% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	50.7%	25.4%	-3.9%	16.3%

Q.3 Valuation ratios of Permanent Magnets Ltd vs historical?

The current P/E is higher 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	43.53	35.31	37.99
Price to Book	4.87	5.47	3.99
Price to Sales	3.81	3.78	2.75
EV to EBITDA	19.77	18.70	18.70

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