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Check Before You Invest : Samkrg Pistons & Rings Ltd

BSE: 520075 NSE: ISIN: INE706B01012
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Samkrg Pistons & Rings Ltd belong to?
Samkrg Pistons & Rings Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is Samkrg Pistons & Rings Ltd a good quality company?
Samkrg Pistons & Rings Ltd is a good quality company, based on a consistently good 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 Samkrg Pistons & Rings Ltd undervalued or overvalued?
Samkrg Pistons & Rings Ltd appears Undervalued, as its key valuation ratios are lower 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 16.74 11.01
Price to Book 0.59 0.82
Price to Sales 0.44 0.60
EV to EBITDA 5.11 4.73
Q.4 Is Samkrg Pistons & Rings Ltd a good buy now?
Samkrg Pistons & Rings 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 Samkrg Pistons & Rings Ltd?
Samkrg Pistons & Rings Ltd revenue growth is -0.1% for FY-2025, which is below its 5-year CAGR of 0.88%, indicating slower growth.

Q.2 Gross Profit margin of Samkrg Pistons & Rings Ltd?
Samkrg Pistons & Rings Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.1% for FY-2025, which is below its 5-year median of 11.3%, indicating decreasing margins.

Q.3 Operating Profit Margin of Samkrg Pistons & Rings Ltd?
Samkrg Pistons & Rings Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.09% for FY-2025, which is below its 5-year median of 13.7% indicating decreasing margins.

Q.4 Net Profit Margin of Samkrg Pistons & Rings Ltd?
Samkrg Pistons & Rings Ltd Net Profit Margin is 2.39% for FY-2025, is below its 5-year median of 5.85%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 10.1 11.3
Operating Profit Margin (%) 12.09 13.7
Net Profit Margin (%) 2.39 5.85

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Samkrg Pistons & Rings Ltd?
Samkrg Pistons & Rings Ltd Return on Asset is 2.09%, which is below its 5-year historical median of 6.35%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Samkrg Pistons & Rings Ltd?
Samkrg Pistons & Rings Ltd Return on capital employed is 7.24% for FY-2025, which is below its 5-year historical median of 11.49%. 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 Samkrg Pistons & Rings Ltd?
Samkrg Pistons & Rings Ltd Return on equity is 3.1% for FY-2025, which is below its 5-year historical median of 8.22%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Samkrg Pistons & Rings Ltd?
Samkrg Pistons & Rings Ltd Cash conversion cycle is 115 days, above its 5-year historical median of 99 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) 0.87 1.26
ROE (%) 3.1 8.22
ROCE (%) 7.24 11.49
Cash Conversion Cycle 115 days 99 days

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

Q.9 Debt to Equity ratio of Samkrg Pistons & Rings Ltd?
Samkrg Pistons & Rings Ltd Debt-to-Equity ratio is 0.30, which is lower the industry average of 0.40, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Samkrg Pistons & Rings Ltd?
Samkrg Pistons & Rings Ltd Debt to cash flow from operations is 3.2, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Samkrg Pistons & Rings Ltd?

Q.1 Promoter shareholding and pledge status of Samkrg Pistons & Rings Ltd?
Promoters hold 66.87% of the Samkrg Pistons & Rings Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Samkrg Pistons & Rings Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Samkrg Pistons & Rings Ltd vs industry peers?
Samkrg Pistons & Rings Ltd revenue CAGR is 0.88%, compared to the industry median CAGR of 11.82%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -0.1 11.8
Gross Profit Growth (%) -13.8 16.3
Operating Profit Growth (%) -3.2 14.9
Net Profit Growth (%) -53.9 20.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.87 1.23
ROE (%) 3.1 11.57
ROCE (%) 7.24 13.36
Cash Conversion Cycle (days) 115.39 47

Valuation & price assessment

Q.1 Stock return of Samkrg Pistons & Rings Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -3.7% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-3.7% -4.4% -5.2% -9.2%
Q.2 Valuation ratios of Samkrg Pistons & Rings Ltd vs historical?
The current P/E ratio of 16.74 is higher than its historical median of 11.01, 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 16.74 11.01 28.71
Price to Book 0.59 0.82 2.99
Price to Sales 0.44 0.60 1.35
EV to EBITDA 5.11 4.73 11.85

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