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Check Before You Invest : RESGEN Ltd

BSE: 543805 NSE: ISIN: INE0NYN01016
  |   Sector:  Miscellaneous   |   Industry:  Environmental Services

Snapshot

Q.1 Which industry/sub-sector does RESGEN Ltd belong to?
RESGEN Ltd belongs to the Miscellaneous sector, operating specifically within the Environmental Services segment.
Q.2 Is RESGEN Ltd a good quality company?
RESGEN Ltd is a average quality company, based on a somewhat consistent 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 RESGEN Ltd undervalued or overvalued?
RESGEN 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 16.3 30.22
Price to Book 2.26 3.29
Price to Sales 2 4.50
EV to EBITDA 8.61 13.50
Q.4 Is RESGEN Ltd a good buy now?
RESGEN 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.

Q.1 Gross Profit margin of RESGEN Ltd?
RESGEN Ltd Gross profit margin which is the profit after deduction of direct costs, is 22.6% for FY-2025, which is below its 5-year median of 31.5%, indicating decreasing margins.

Q.2 Operating Profit Margin of RESGEN Ltd?
RESGEN Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 23.69% for FY-2025, which is below its 5-year median of 33.56% indicating decreasing margins.

Q.3 Net Profit Margin of RESGEN Ltd?
RESGEN Ltd Net Profit Margin is 12.24% for FY-2025, is below its 5-year median of 15.76%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 22.6 31.5
Operating Profit Margin (%) 23.69 33.56
Net Profit Margin (%) 12.24 15.76

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of RESGEN Ltd?
RESGEN Ltd Return on Asset is 11.77%, which is above its 5-year historical median of 9.88%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of RESGEN Ltd?
RESGEN Ltd Return on capital employed is 19.69% for FY-2025, which is above its 5-year historical median of 18.27%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of RESGEN Ltd?
RESGEN Ltd Return on equity is 14.88% for FY-2025, which is in line with its 5-year historical median of 14.88%, indicating the business is making similar use of its shareholders capital.

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

Q.7 Debt to Equity ratio of RESGEN Ltd?
RESGEN Ltd Debt-to-Equity ratio is 0.08, which is lower the industry average of 0.26, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of RESGEN Ltd?
RESGEN Ltd Debt to cash flow from operations is 0.62, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of RESGEN Ltd?

Q.1 Promoter shareholding and pledge status of RESGEN Ltd?
Promoters hold 66.98% of the RESGEN Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does RESGEN Ltd performance compare with that of its Peers?

Q.1 Revenue growth of RESGEN Ltd vs industry peers?
RESGEN Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 4.01%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - 4
Gross Profit Growth (%) 7.1 27
Operating Profit Growth (%) - 13.1
Net Profit Growth (%) 14.3 28.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.96 0.84
ROE (%) 14.88 13.91
ROCE (%) 19.69 13.74
Cash Conversion Cycle (days) 203.04 71

Valuation & price assessment

Q.1 Stock return of RESGEN Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of 7.9% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - 7.9% -18.4%
Q.2 Valuation ratios of RESGEN Ltd vs historical?
The current P/E ratio of 16.3 is lower than its historical median of 30.22, indicating that the stock is trading below 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 16.3 30.22 31.72
Price to Book 2.26 3.29 4.85
Price to Sales 2 4.50 2.84
EV to EBITDA 8.61 13.50 17.87

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