Check Before You Invest : Shri Hare-Krishna Sponge Iron Ltd

Snapshot

Q.1 Which industry/sub-sector does Shri Hare-Krishna Sponge Iron Ltd belong to?

Shri Hare-Krishna Sponge Iron Ltd belongs to the Metals & Mining sector, operating specifically within the Steel/Sponge Iron/Pig Iron segment.

Q.2 Is Shri Hare-Krishna Sponge Iron Ltd a good quality company?

Shri Hare-Krishna Sponge Iron Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Shri Hare-Krishna Sponge Iron Ltd undervalued or overvalued?

Shri Hare-Krishna Sponge Iron Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Shri Hare-Krishna Sponge Iron Ltd a good buy now?

Shri Hare-Krishna Sponge Iron 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 Shri Hare-Krishna Sponge Iron Ltd?

Shri Hare-Krishna Sponge Iron Ltd revenue growth is -2.2% for FY-2025, which is below its 5-year CAGR of 7.33%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Shri Hare-Krishna Sponge Iron Ltd?

Shri Hare-Krishna Sponge Iron Ltd Return on capital employed is 16.05% for FY-2025, which is below its 5-year historical median of 21.99%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Shri Hare-Krishna Sponge Iron Ltd?

Shri Hare-Krishna Sponge Iron Ltd Return on Asset is 10.91%, which is below its 5-year historical median of 15.17%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Shri Hare-Krishna Sponge Iron Ltd?

Shri Hare-Krishna Sponge Iron Ltd Return on equity is 13.33% for FY-2025, which is below its 5-year historical median of 17.16%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Shri Hare-Krishna Sponge Iron Ltd?

Shri Hare-Krishna Sponge Iron Ltd Cash conversion cycle is 44 days, in line with its 5-year historical median of 44 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	0.95	1.34
ROE	13.33	17.16
ROCE	16.05	21.99
Cash Conversion Cycle	44 days	44 days

Q.6 Gross Profit margin of Shri Hare-Krishna Sponge Iron Ltd?

Shri Hare-Krishna Sponge Iron Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.1% for FY-2025, which is above its 5-year median of 15.8%, indicating increasing margins.

Q.7 Operating Profit Margin of Shri Hare-Krishna Sponge Iron Ltd?

Shri Hare-Krishna Sponge Iron Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.5% for FY-2025, which is below its 5-year median of 14.89% indicating decreasing margins.

Q.8 Net Profit Margin of Shri Hare-Krishna Sponge Iron Ltd?

Shri Hare-Krishna Sponge Iron Ltd Net Profit Margin is 11.43% for FY-2025, is in line with with its 5-year median of 11.17%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	17.1	15.8
Operating Profit Margin	13.5	14.89
Net Profit Margin	11.43	11.17

Q.9 Debt to Equity ratio of Shri Hare-Krishna Sponge Iron Ltd?

Shri Hare-Krishna Sponge Iron Ltd Debt-to-Equity ratio is 0.15, which is lower with the industry average of 0.55, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Shri Hare-Krishna Sponge Iron Ltd?

Shri Hare-Krishna Sponge Iron Ltd Debt to cash flow from operations is 0.88, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Shri Hare-Krishna Sponge Iron Ltd?

Promoters hold 73.58% of the Shri Hare-Krishna Sponge Iron Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Shri Hare-Krishna Sponge Iron Ltd vs industry peers?

Shri Hare-Krishna Sponge Iron Ltd revenue CAGR is 7.33%, compared to the industry median CAGR of 7.94%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-2.2	7.9
Gross Profit Growth	-6.1	28.5
Operating Profit Growth	-11.4	20.2
Net Profit Growth	-9.5	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.95	1.81
ROE	13.33	13.12
ROCE	16.05	13.77
Cash Conversion Cycle (days)	43.87	36

Valuation & price assessment

Q.1 Stock return of Shri Hare-Krishna Sponge Iron Ltd over the last decade?

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

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

Q.3 Valuation ratios of Shri Hare-Krishna Sponge Iron 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	8.97	11.68	16.29
Price to Book	1.05	1.32	1.83
Price to Sales	1.03	1.34	1.06
EV to EBITDA	3.93	5.72	10.34

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