Check Before You Invest : Pondy Oxides & Chemicals Ltd

Snapshot

Q.1 Which industry/sub-sector does Pondy Oxides & Chemicals Ltd belong to?

Pondy Oxides & Chemicals Ltd belongs to the Metals & Mining sector, operating specifically within the Metal - Non Ferrous segment.

Q.2 Is Pondy Oxides & Chemicals Ltd a good quality company?

Pondy Oxides & Chemicals Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Pondy Oxides & Chemicals Ltd undervalued or overvalued?

Pondy Oxides & Chemicals Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Pondy Oxides & Chemicals Ltd a good buy now?

Pondy Oxides & Chemicals 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

Q.1 Revenue growth of Pondy Oxides & Chemicals Ltd?

Pondy Oxides & Chemicals Ltd revenue growth is 33% for FY-2025, which is above its 5-year CAGR of 10.7%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Pondy Oxides & Chemicals Ltd?

Pondy Oxides & Chemicals Ltd Return on capital employed is 16.88% for FY-2025, which is in line with its 5-year historical median of 16.88%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Pondy Oxides & Chemicals Ltd?

Pondy Oxides & Chemicals Ltd Return on Asset is 10.91%, which is in line with its 5-year historical median of 10.91%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Pondy Oxides & Chemicals Ltd?

Pondy Oxides & Chemicals Ltd Return on equity is 14.2% for FY-2025, which is in line with its 5-year historical median of 14.2%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Pondy Oxides & Chemicals Ltd?

Pondy Oxides & Chemicals Ltd Cash conversion cycle is 50 days, below its 5-year historical median of 56 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	3.4	3.74
ROE	14.2	14.2
ROCE	16.88	16.88
Cash Conversion Cycle	50 days	56 days

Q.6 Gross Profit margin of Pondy Oxides & Chemicals Ltd?

Pondy Oxides & Chemicals Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.7% for FY-2025, which is in line with its 5-year median of 4.7%, indicating stable margins.

Q.7 Operating Profit Margin of Pondy Oxides & Chemicals Ltd?

Pondy Oxides & Chemicals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.2% for FY-2025, which is in line with its 5-year median of 5.2% indicating stable margins.

Q.8 Net Profit Margin of Pondy Oxides & Chemicals Ltd?

Pondy Oxides & Chemicals Ltd Net Profit Margin is 3.21% for FY-2025, is in line with with its 5-year median of 3.21%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	4.7	4.7
Operating Profit Margin	5.2	5.2
Net Profit Margin	3.21	3.21

Q.9 Debt to Equity ratio of Pondy Oxides & Chemicals Ltd?

Pondy Oxides & Chemicals Ltd Debt-to-Equity ratio is 0.18, which is lower with the industry average of 0.25, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Pondy Oxides & Chemicals Ltd?

Pondy Oxides & Chemicals Ltd Debt to cash flow from operations is -1.3, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Pondy Oxides & Chemicals Ltd?

Promoters hold 39.34% of the Pondy Oxides & Chemicals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Pondy Oxides & Chemicals Ltd vs industry peers?

Pondy Oxides & Chemicals Ltd revenue CAGR is 10.70%, compared to the industry median CAGR of 16.84%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	33	16.8
Gross Profit Growth	57.4	24.7
Operating Profit Growth	40	19.2
Net Profit Growth	62.5	15

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	3.4	2.44
ROE	14.2	5.47
ROCE	16.88	8.46
Cash Conversion Cycle (days)	49.73	56

Valuation & price assessment

Q.1 Stock return of Pondy Oxides & Chemicals Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 49.4% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	49.4%	90.1%	97.1%	80.9%

Q.3 Valuation ratios of Pondy Oxides & Chemicals 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	36.11	14.15	26.99
Price to Book	5.85	2.24	2.29
Price to Sales	1.7	0.38	0.62
EV to EBITDA	22.85	10.63	12.14

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