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Check Before You Invest : Sheel Biotech Ltd

BSE: 0 NSE: SHEEL ISIN: INE0YJV01017
  |   Sector:  Agriculture & Allied activities   |   Industry:  Agriculture

Snapshot

Q.1 Which industry/sub-sector does Sheel Biotech Ltd belong to?
Sheel Biotech Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Agriculture segment.
Q.2 Is Sheel Biotech Ltd a good quality company?
Sheel Biotech Ltd is a quality company, based on a 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 Sheel Biotech Ltd undervalued or overvalued?
Sheel Biotech Ltd appears Somewhat 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 8.52 -
Price to Book 1.01 -
Price to Sales 0.89 -
EV to EBITDA 6.94 -
Q.4 Is Sheel Biotech Ltd a good buy now?
Sheel Biotech 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 Sheel Biotech Ltd?
Sheel Biotech Ltd revenue growth is 10.3% for FY-2025, which is in line with its 5-year CAGR of 10.79%, indicating stable growth.

Q.2 Gross Profit margin of Sheel Biotech Ltd?
Sheel Biotech Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.5% for FY-2025, which is above its 5-year median of 9.2%, indicating increasing margins.

Q.3 Operating Profit Margin of Sheel Biotech Ltd?
Sheel Biotech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.71% for FY-2025, which is above its 5-year median of 11.02% indicating increasing margins.

Q.4 Net Profit Margin of Sheel Biotech Ltd?
Sheel Biotech Ltd Net Profit Margin is 10.45% for FY-2025, is above its 5-year median of 7.61%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 13.5 9.2
Operating Profit Margin (%) 14.71 11.02
Net Profit Margin (%) 10.45 7.61

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Sheel Biotech Ltd?
Sheel Biotech Ltd Return on Asset is 9.71%, which is above its 5-year historical median of 5.86%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Sheel Biotech Ltd?
Sheel Biotech Ltd Return on capital employed is 14.78% for FY-2025, which is above its 5-year historical median of 9.5%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Sheel Biotech Ltd?
Sheel Biotech Ltd Return on equity is 13.59% for FY-2025, which is above its 5-year historical median of 8.77%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Sheel Biotech Ltd?
Sheel Biotech Ltd Cash conversion cycle is 314 days, in line with its 5-year historical median of 314 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 (x) 0.93 0.86
ROE (%) 13.59 8.77
ROCE (%) 14.78 9.5
Cash Conversion Cycle 314 days 314 days

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

Q.9 Debt to Equity ratio of Sheel Biotech Ltd?
Sheel Biotech Ltd Debt-to-Equity ratio is 0.21, which is above the industry average of 0.13, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Sheel Biotech Ltd?
Sheel Biotech Ltd Debt to cash flow from operations is 1.89, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Sheel Biotech Ltd?

Q.1 Promoter shareholding and pledge status of Sheel Biotech Ltd?
Promoters hold 72.29% of the Sheel Biotech Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Sheel Biotech Ltd vs industry peers?
Sheel Biotech Ltd revenue CAGR is 10.79%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 10.3 0
Gross Profit Growth (%) 3.6 15.2
Operating Profit Growth (%) 3.6 21.2
Net Profit Growth (%) 1.6 8.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.93 0.53
ROE (%) 13.59 7.6
ROCE (%) 14.78 8.57
Cash Conversion Cycle (days) 313.59 73

Valuation & price assessment

Q.1 Stock return of Sheel Biotech Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Sheel Biotech Ltd vs historical?
The current P/E ratio of 8.52 is higher than its historical median of , 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 8.52 - 20.70
Price to Book 1.01 - 1.93
Price to Sales 0.89 - 1.89
EV to EBITDA 6.94 - 13.08

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