Check Before You Invest : Prima Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does Prima Industries Ltd belong to?

Prima Industries Ltd belongs to the FMCG sector, operating specifically within the Animal Feed segment.

Q.2 Is Prima Industries Ltd a good quality company?

Prima Industries Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Prima Industries Ltd undervalued or overvalued?

Prima Industries Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Prima Industries Ltd a good buy now?

Prima Industries 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 Prima Industries Ltd?

Prima Industries Ltd revenue growth is -4.9% for FY-2025, which is above its 5-year CAGR of -15.04%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Prima Industries Ltd?

Prima Industries Ltd Return on capital employed is 0.51% for FY-2025, which is below its 5-year historical median of 5.47%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Prima Industries Ltd?

Prima Industries Ltd Return on Asset is -1.19%, which is below its 5-year historical median of 1.81%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Prima Industries Ltd?

Prima Industries Ltd Return on equity is -4.04% for FY-2025, which is below its 5-year historical median of 5.15%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Prima Industries Ltd?

Prima Industries Ltd Cash conversion cycle is 27 days, above its 5-year historical median of 9 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	0.3	0.32
ROE	-4.04	5.15
ROCE	0.51	5.47
Cash Conversion Cycle	27 days	9 days

Q.6 Gross Profit margin of Prima Industries Ltd?

Prima Industries 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 16.1%, indicating decreasing margins.

Q.7 Operating Profit Margin of Prima Industries Ltd?

Prima Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -6.7% for FY-2025, which is below its 5-year median of 11.48% indicating decreasing margins.

Q.8 Net Profit Margin of Prima Industries Ltd?

Prima Industries Ltd Net Profit Margin is -3.92% for FY-2025, is below with its 5-year median of 5.89%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	4.5	16.1
Operating Profit Margin	-6.7	11.48
Net Profit Margin	-3.92	5.89

Q.9 Debt to Equity ratio of Prima Industries Ltd?

Prima Industries Ltd Debt-to-Equity ratio is 0.15, which is above with the industry average of 0.12, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Prima Industries Ltd?

Prima Industries Ltd Debt to cash flow from operations is -3.02, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Prima Industries Ltd?

Promoters hold 54.50% of the Prima Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Prima Industries Ltd vs industry peers?

Prima Industries Ltd revenue CAGR is -15.04%, compared to the industry median CAGR of 6.14%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-4.9	6.1
Gross Profit Growth	-81.7	8.8
Operating Profit Growth	-737.5	10.7
Net Profit Growth	-166.7	7.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.3	1.76
ROE	-4.04	12.91
ROCE	0.51	11.94
Cash Conversion Cycle (days)	26.68	31

Valuation & price assessment

Q.1 Stock return of Prima Industries Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 8.1% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	8.1%	-2%	4.8%	-7.4%

Q.3 Valuation ratios of Prima Industries 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	47.57	19.93	20.37
Price to Book	2.47	2.94	2.73
Price to Sales	2.43	2.36	1.07
EV to EBITDA	25.57	14.17	14.06

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