Check Before You Invest : Quality RO Industries Ltd

Snapshot

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

Quality RO Industries Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.

Q.2 Is Quality RO Industries Ltd a good quality company?

Quality RO Industries Ltd is a quality company, based on a 4-year financial track record.

Q.3 Is Quality RO Industries Ltd undervalued or overvalued?

Quality RO Industries Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Quality RO Industries Ltd a good buy now?

Quality RO 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 Quality RO Industries Ltd?

Quality RO Industries Ltd revenue growth is 10.3% for FY-2025, which is below its 3-year CAGR of 137.47%, indicating slower growth.

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

Quality RO Industries Ltd Return on capital employed is 18.49% for FY-2025, which is in line with its 3-year historical median of 18.49%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Quality RO Industries Ltd?

Quality RO Industries Ltd Return on Asset is 11.11%, which is in line with its 3-year historical median of 11.11%, indicating stable asset utilization efficiency.

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

Quality RO Industries Ltd Return on equity is 14.15% for FY-2025, which is in line with its 3-year historical median of 14.15%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Quality RO Industries Ltd?

Quality RO Industries Ltd Cash conversion cycle is 106 days, above its 3-year historical median of 78 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover	0.98	0.98
ROE	14.15	14.15
ROCE	18.49	18.49
Cash Conversion Cycle	106 days	78 days

Q.6 Gross Profit margin of Quality RO Industries Ltd?

Quality RO Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 19.6% for FY-2025, which is in line with its 3-year median of 19.6%, indicating stable margins.

Q.7 Operating Profit Margin of Quality RO Industries Ltd?

Quality RO Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.24% for FY-2025, which is in line with its 3-year median of 20.32% indicating stable margins.

Q.8 Net Profit Margin of Quality RO Industries Ltd?

Quality RO Industries Ltd Net Profit Margin is 11.38% for FY-2025, is in line with with its 3-year median of 11.38%, indicating stable margins.

	Current Level	3-year Historic Median
Gross Profit Margin	19.6	19.6
Operating Profit Margin	21.24	20.32
Net Profit Margin	11.38	11.38

Q.9 Debt to Equity ratio of Quality RO Industries Ltd?

Quality RO Industries Ltd Debt-to-Equity ratio is 0.20, which is lower with the industry average of 0.26, indicating lower debt levels in the industry.

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

Quality RO Industries Ltd Debt to cash flow from operations is 5.05, which is at a unhealthy level.

Ownership & governance

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

Promoters hold 47.58% of the Quality RO Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Quality RO Industries Ltd revenue CAGR is 137.47%, compared to the industry median CAGR of 5.58%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	10.3	5.6
Gross Profit Growth	3.3	16.4
Operating Profit Growth	15.5	13
Net Profit Growth	0.7	21

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	0.98	1.15
ROE	14.15	8.99
ROCE	18.49	11.07
Cash Conversion Cycle (days)	105.67	83

Valuation & price assessment

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

Over the last 3 year(s), the stock has delivered a CAGR of -8.94% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-8.9%	-52.4%

Q.3 Valuation ratios of Quality RO Industries Ltd vs historical?

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

Q.4 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	10.43	22.70	25.29
Price to Book	1.38	2.96	1.94
Price to Sales	1.19	2.99	1.64
EV to EBITDA	5.95	14.56	13.35

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