Check Before You Invest : Narmada Gelatines Ltd

Snapshot

Q.1 Which industry/sub-sector does Narmada Gelatines Ltd belong to?

Narmada Gelatines Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is Narmada Gelatines Ltd a good quality company?

Narmada Gelatines Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Narmada Gelatines Ltd undervalued or overvalued?

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

Q.4 Is Narmada Gelatines Ltd a good buy now?

Narmada Gelatines 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 Narmada Gelatines Ltd?

Narmada Gelatines Ltd revenue growth is 3.9% for FY-2025, which is below its 5-year CAGR of 7.07%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Narmada Gelatines Ltd?

Narmada Gelatines Ltd Return on capital employed is 19.92% for FY-2025, which is above its 5-year historical median of 16.83%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Narmada Gelatines Ltd?

Narmada Gelatines Ltd Return on Asset is 11.75%, which is above its 5-year historical median of 10.67%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Narmada Gelatines Ltd?

Narmada Gelatines Ltd Return on equity is 15.07% for FY-2025, which is above its 5-year historical median of 12.78%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Narmada Gelatines Ltd?

Narmada Gelatines Ltd Cash conversion cycle is 101 days, in line with its 5-year historical median of 104 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	1.29	1.29
ROE	15.07	12.78
ROCE	19.92	16.83
Cash Conversion Cycle	101 days	104 days

Q.6 Gross Profit margin of Narmada Gelatines Ltd?

Narmada Gelatines Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.2% for FY-2025, which is above its 5-year median of 11.4%, indicating increasing margins.

Q.7 Operating Profit Margin of Narmada Gelatines Ltd?

Narmada Gelatines Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.01% for FY-2025, which is above its 5-year median of 10.33% indicating increasing margins.

Q.8 Net Profit Margin of Narmada Gelatines Ltd?

Narmada Gelatines Ltd Net Profit Margin is 9.11% for FY-2025, is above with its 5-year median of 8%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	13.2	11.4
Operating Profit Margin	13.01	10.33
Net Profit Margin	9.11	8

Q.9 Debt to Equity ratio of Narmada Gelatines Ltd?

Narmada Gelatines Ltd Debt-to-Equity ratio is 0.11, 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 Narmada Gelatines Ltd?

Narmada Gelatines Ltd Debt to cash flow from operations is 0.75, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Narmada Gelatines Ltd?

Promoters hold 75.00% of the Narmada Gelatines Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Narmada Gelatines Ltd vs industry peers?

Narmada Gelatines Ltd revenue CAGR is 7.07%, 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	3.9	9.6
Gross Profit Growth	8.7	14.3
Operating Profit Growth	19.1	12
Net Profit Growth	13.3	12.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.29	0.97
ROE	15.07	10.68
ROCE	19.92	13.26
Cash Conversion Cycle (days)	100.6	63

Valuation & price assessment

Q.1 Stock return of Narmada Gelatines Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 11.7% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	11.7%	20.2%	11.7%	36.7%

Q.3 Valuation ratios of Narmada Gelatines 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	10.8	13.35	27.93
Price to Book	1.98	1.71	2.22
Price to Sales	1.28	1.07	1.93
EV to EBITDA	7.64	8.55	14.18

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