Check Before You Invest : Rite Zone Chemcon India Ltd

Snapshot

Q.1 Which industry/sub-sector does Rite Zone Chemcon India Ltd belong to?

Rite Zone Chemcon India Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is Rite Zone Chemcon India Ltd a good quality company?

Rite Zone Chemcon India Ltd is a quality company, based on a 6-year financial track record.

Q.3 Is Rite Zone Chemcon India Ltd undervalued or overvalued?

Rite Zone Chemcon India Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Rite Zone Chemcon India Ltd a good buy now?

Rite Zone Chemcon India 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 Rite Zone Chemcon India Ltd?

Rite Zone Chemcon India Ltd revenue growth is -2% for FY-2025, which is below its 5-year CAGR of 35.43%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Rite Zone Chemcon India Ltd?

Rite Zone Chemcon India Ltd Return on capital employed is 7.73% for FY-2025, which is below its 5-year historical median of 10.49%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Rite Zone Chemcon India Ltd?

Rite Zone Chemcon India Ltd Return on Asset is 4.34%, which is in line with its 5-year historical median of 4.34%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Rite Zone Chemcon India Ltd?

Rite Zone Chemcon India Ltd Return on equity is 6.1% for FY-2025, which is below its 5-year historical median of 8.13%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Rite Zone Chemcon India Ltd?

Rite Zone Chemcon India Ltd Cash conversion cycle is 97 days, in line with its 5-year historical median of 97 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.27	1.27
ROE	6.1	8.13
ROCE	7.73	10.49
Cash Conversion Cycle	97 days	97 days

Q.6 Gross Profit margin of Rite Zone Chemcon India Ltd?

Rite Zone Chemcon India Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.3% for FY-2025, which is below its 5-year median of 6%, indicating decreasing margins.

Q.7 Operating Profit Margin of Rite Zone Chemcon India Ltd?

Rite Zone Chemcon India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.69% for FY-2025, which is below its 5-year median of 6.09% indicating decreasing margins.

Q.8 Net Profit Margin of Rite Zone Chemcon India Ltd?

Rite Zone Chemcon India Ltd Net Profit Margin is 3.41% for FY-2025, is below with its 5-year median of 3.7%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	5.3	6
Operating Profit Margin	4.69	6.09
Net Profit Margin	3.41	3.7

Q.9 Debt to Equity ratio of Rite Zone Chemcon India Ltd?

Rite Zone Chemcon India Ltd Debt-to-Equity ratio is 0.06, 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 Rite Zone Chemcon India Ltd?

Rite Zone Chemcon India Ltd Debt to cash flow from operations is -29.48, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Rite Zone Chemcon India Ltd?

Promoters hold 41.89% of the Rite Zone Chemcon India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Rite Zone Chemcon India Ltd vs industry peers?

Rite Zone Chemcon India Ltd revenue CAGR is 35.43%, compared to the industry median CAGR of 9.62%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-2	9.6
Gross Profit Growth	-19.3	14.3
Operating Profit Growth	-24.5	12
Net Profit Growth	-21.2	12.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.27	0.97
ROE	6.1	10.68
ROCE	7.73	13.26
Cash Conversion Cycle (days)	97.07	63

Valuation & price assessment

Q.1 Stock return of Rite Zone Chemcon India Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of -28.11% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-28.1%	8%

Q.3 Valuation ratios of Rite Zone Chemcon India Ltd vs historical?

The current P/E is lower 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	12.18	18.31	27.93
Price to Book	0.72	1.43	2.22
Price to Sales	0.42	0.77	1.93
EV to EBITDA	6.47	10.38	14.18

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