Check Before You Invest : Reliance Chemotex Industries Ltd

Q: Which industry/sub-sector does Reliance Chemotex Industries Ltd belong to?

Reliance Chemotex Industries Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Spinning segment.

Q: Is Reliance Chemotex Industries Ltd a good quality company?

Reliance Chemotex Industries Ltd is a quality company, based on a multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Reliance Chemotex Industries Ltd undervalued or overvalued?

Reliance Chemotex Industries Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 17.47, Historic Median: 15.43. Price to Book, Current: 0.67, Historic Median: 1.13. Price to Sales, Current: 0.26, Historic Median: 0.40. EV to EBITDA, Current: 7.24, Historic Median: 7.16

Q: Is Reliance Chemotex Industries Ltd a good buy now?

Reliance Chemotex 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

Q: Revenue growth of Reliance Chemotex Industries Ltd?

Reliance Chemotex Industries Ltd revenue growth is -2.3% for FY-2025, which is below its 5-year CAGR of 3.65%, indicating slower growth.

Q: Gross Profit margin of Reliance Chemotex Industries Ltd?

Reliance Chemotex Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.1% for FY-2025, which is below its 5-year median of 7%, indicating decreasing margins.

Q: Operating Profit Margin of Reliance Chemotex Industries Ltd?

Reliance Chemotex Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9% for FY-2025, which is in line with its 5-year median of 9.1% indicating stable margins.

Q: Net Profit Margin of Reliance Chemotex Industries Ltd?

Reliance Chemotex Industries Ltd Net Profit Margin is 1.13% for FY-2025, is below its 5-year median of 2.71%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 5.1, Historic Median: 7. Operating Profit Margin (%), Current: 9, Historic Median: 9.1. Net Profit Margin (%), Current: 1.13, Historic Median: 2.71

Q: Return on Asset of Reliance Chemotex Industries Ltd?

Reliance Chemotex Industries Ltd Return on Asset is 0.85%, which is below its 5-year historical median of 2.81%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Reliance Chemotex Industries Ltd?

Reliance Chemotex Industries Ltd Return on capital employed is 6.85% for FY-2025, which is below its 5-year historical median of 10.67%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Reliance Chemotex Industries Ltd

Snapshot

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

Reliance Chemotex Industries Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Spinning segment.

Q.2 Is Reliance Chemotex Industries Ltd a good quality company?

Reliance Chemotex Industries Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Reliance Chemotex Industries Ltd undervalued or overvalued?

Reliance Chemotex Industries Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	17.47	15.43
Price to Book	0.67	1.13
Price to Sales	0.26	0.40
EV to EBITDA	7.24	7.16

Q.4 Is Reliance Chemotex Industries Ltd a good buy now?

Reliance Chemotex 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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Reliance Chemotex Industries Ltd?

Reliance Chemotex Industries Ltd revenue growth is -2.3% for FY-2025, which is below its 5-year CAGR of 3.65%, indicating slower growth.

Q.2 Gross Profit margin of Reliance Chemotex Industries Ltd?

Reliance Chemotex Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.1% for FY-2025, which is below its 5-year median of 7%, indicating decreasing margins.

Q.3 Operating Profit Margin of Reliance Chemotex Industries Ltd?

Reliance Chemotex Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9% for FY-2025, which is in line with its 5-year median of 9.1% indicating stable margins.

Q.4 Net Profit Margin of Reliance Chemotex Industries Ltd?

Reliance Chemotex Industries Ltd Net Profit Margin is 1.13% for FY-2025, is below its 5-year median of 2.71%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	5.1	7
Operating Profit Margin (%)	9	9.1
Net Profit Margin (%)	1.13	2.71

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Reliance Chemotex Industries Ltd?

Reliance Chemotex Industries Ltd Return on Asset is 0.85%, which is below its 5-year historical median of 2.81%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Reliance Chemotex Industries Ltd?

Reliance Chemotex Industries Ltd Return on capital employed is 6.85% for FY-2025, which is below its 5-year historical median of 10.67%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Reliance Chemotex Industries Ltd?

Reliance Chemotex Industries Ltd Return on equity is 2.99% for FY-2025, which is below its 5-year historical median of 6.85%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Reliance Chemotex Industries Ltd?

Reliance Chemotex Industries Ltd Cash conversion cycle is 50 days, above its 5-year historical median of 39 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 (x)	0.75	0.99
ROE (%)	2.99	6.85
ROCE (%)	6.85	10.67
Cash Conversion Cycle	50 days	39 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Reliance Chemotex Industries Ltd?

Reliance Chemotex Industries Ltd Debt-to-Equity ratio is 1.90, which is above the industry average of 0.36, indicating higher debt levels in the industry.

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

Reliance Chemotex Industries Ltd Debt to cash flow from operations is 24.16, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Reliance Chemotex Industries Ltd?

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

Promoters hold 67.68% of the Reliance Chemotex Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Reliance Chemotex Industries Ltd performance compare with that of its Peers?

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

Reliance Chemotex Industries Ltd revenue CAGR is 3.65%, compared to the industry median CAGR of 1.47%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-2.3	1.5
Gross Profit Growth (%)	16.3	1.8
Operating Profit Growth (%)	3.9	-1.5
Net Profit Growth (%)	26.2	2.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.75	0.94
ROE (%)	2.99	-
ROCE (%)	6.85	5.99
Cash Conversion Cycle (days)	50.32	61

Valuation & price assessment

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

Over the last 9 year(s), the stock has delivered a CAGR of 10.3% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	10.3%	6.8%	-11.2%	-21.7%

Q.2 Valuation ratios of Reliance Chemotex Industries Ltd vs historical?

The current P/E ratio of 17.47 is higher than its historical median of 15.43, indicating that the stock is trading above its historical average valuation.

Q.3 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	17.47	15.43	9.43
Price to Book	0.67	1.13	0.72
Price to Sales	0.26	0.40	0.40
EV to EBITDA	7.24	7.16	7.20

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Check Before You Invest : Reliance Chemotex Industries Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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