Check Before You Invest : Span Divergent Ltd

BSE: 524727 NSE: ISIN: INE004E01016

| Sector: Chemicals & Fertilizers | Industry: Chemicals

Snapshot

Q.1 Which industry/sub-sector does Span Divergent Ltd belong to?

Span Divergent Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is Span Divergent Ltd a good quality company?

Span Divergent Ltd is a quality company, based on a 9-year financial track record.

Q.3 Is Span Divergent Ltd undervalued or overvalued?

Span Divergent Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Span Divergent Ltd a good buy now?

Span Divergent 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 Span Divergent Ltd?

Span Divergent Ltd revenue growth is -15.7% for FY-2025, which is below its 5-year CAGR of -1.2%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Span Divergent Ltd?

Span Divergent Ltd Return on capital employed is 2.69% for FY-2025, which is above its 5-year historical median of 0.13%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Span Divergent Ltd?

Span Divergent Ltd Return on Asset is 2.15%, which is above its 5-year historical median of -0.71%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Span Divergent Ltd?

Span Divergent Ltd Return on equity is 2.44% for FY-2025, which is above its 5-year historical median of -0.8%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Span Divergent Ltd?

Span Divergent Ltd Cash conversion cycle is 51 days, above its 5-year historical median of 11 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	0.04	0.04
ROE	2.44	-0.8
ROCE	2.69	0.13
Cash Conversion Cycle	51 days	11 days

Q.6 Gross Profit margin of Span Divergent Ltd?

Span Divergent Ltd Gross profit margin which is the profit after deduction of direct costs, is 73% for FY-2025, which is below its 5-year median of 81.9%, indicating decreasing margins.

Q.7 Operating Profit Margin of Span Divergent Ltd?

Span Divergent Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.46% for FY-2025, which is below its 5-year median of 11.52% indicating decreasing margins.

Q.8 Net Profit Margin of Span Divergent Ltd?

Span Divergent Ltd Net Profit Margin is 52.15% for FY-2025, is above with its 5-year median of -0.12%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	73	81.9
Operating Profit Margin	1.46	11.52
Net Profit Margin	52.15	-0.12

Q.9 Debt to Equity ratio of Span Divergent Ltd?

Span Divergent 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 Span Divergent Ltd?

Span Divergent Ltd Debt to cash flow from operations is 1.92, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Span Divergent Ltd?

Promoters hold 48.13% of the Span Divergent Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Span Divergent Ltd vs industry peers?

Span Divergent Ltd revenue CAGR is -1.20%, compared to the industry median CAGR of 9.62%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-15.7	9.6
Gross Profit Growth	-33.3	14.3
Operating Profit Growth	-90.9	12
Net Profit Growth	-44.4	12.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.04	0.97
ROE	2.44	10.68
ROCE	2.69	13.26
Cash Conversion Cycle (days)	51.25	63

Valuation & price assessment

Q.1 Stock return of Span Divergent Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -6.3% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-6.3%	23.4%	35.2%	59.4%

Q.3 Valuation ratios of Span Divergent Ltd vs historical?

The current P/E is higher 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	33.09	14.32	27.93
Price to Book	0.72	0.25	2.22
Price to Sales	-	14.75	1.93
EV to EBITDA	37.94	8.36	14.18

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