Check Before You Invest : Shining Tools Ltd

Q: Which industry/sub-sector does Shining Tools Ltd belong to?

Shining Tools Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q: Is Shining Tools Ltd a good quality company?

Shining Tools 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: Is Shining Tools Ltd undervalued or overvalued?

Shining Tools Ltd appears 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. Price to Earnings, Current: 14.58, Historic Median: 11.78. Price to Book, Current: 1.7, Historic Median: 1.41. Price to Sales, Current: 2.9, Historic Median: 2.34. EV to EBITDA, Current: 7.8, Historic Median: 6.54

Q: Is Shining Tools Ltd a good buy now?

Shining Tools 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

Q: Revenue growth of Shining Tools Ltd?

Shining Tools Ltd revenue growth is 39.9% for FY-2025, which is above its 3-year CAGR of 13.52%, indicating faster growth.

Q: Gross Profit margin of Shining Tools Ltd?

Shining Tools Ltd Gross profit margin which is the profit after deduction of direct costs, is 37% for FY-2025, which is above its 3-year median of 31.3%, indicating increasing margins.

Q: Operating Profit Margin of Shining Tools Ltd?

Shining Tools Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 43.99% for FY-2025, which is above its 3-year median of 39.33% indicating increasing margins.

Q: Net Profit Margin of Shining Tools Ltd?

Shining Tools Ltd Net Profit Margin is 19.89% for FY-2025, is above its 3-year median of 14.96%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 37, Historic Median: 31.3. Operating Profit Margin (%), Current: 43.99, Historic Median: 39.33. Net Profit Margin (%), Current: 19.89, Historic Median: 14.96

Q: Return on Asset of Shining Tools Ltd?

Shining Tools Ltd Return on Asset is 17.07%, which is above its 3-year historical median of 9.98%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Shining Tools Ltd?

Shining Tools Ltd Return on capital employed is 37.69% for FY-2025, which is above its 3-year historical median of 26.83%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Shining Tools Ltd

Snapshot

Q.1 Which industry/sub-sector does Shining Tools Ltd belong to?

Shining Tools Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q.2 Is Shining Tools Ltd a good quality company?

Shining Tools 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 Shining Tools Ltd undervalued or overvalued?

Shining Tools Ltd appears 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	3-year Historic Median
Price to Earnings	14.58	11.78
Price to Book	1.7	1.41
Price to Sales	2.9	2.34
EV to EBITDA	7.8	6.54

Q.4 Is Shining Tools Ltd a good buy now?

Shining Tools 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 Shining Tools Ltd?

Shining Tools Ltd revenue growth is 39.9% for FY-2025, which is above its 3-year CAGR of 13.52%, indicating faster growth.

Q.2 Gross Profit margin of Shining Tools Ltd?

Shining Tools Ltd Gross profit margin which is the profit after deduction of direct costs, is 37% for FY-2025, which is above its 3-year median of 31.3%, indicating increasing margins.

Q.3 Operating Profit Margin of Shining Tools Ltd?

Shining Tools Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 43.99% for FY-2025, which is above its 3-year median of 39.33% indicating increasing margins.

Q.4 Net Profit Margin of Shining Tools Ltd?

Shining Tools Ltd Net Profit Margin is 19.89% for FY-2025, is above its 3-year median of 14.96%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin (%)	37	31.3
Operating Profit Margin (%)	43.99	39.33
Net Profit Margin (%)	19.89	14.96

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Shining Tools Ltd?

Shining Tools Ltd Return on Asset is 17.07%, which is above its 3-year historical median of 9.98%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Shining Tools Ltd?

Shining Tools Ltd Return on capital employed is 37.69% for FY-2025, which is above its 3-year historical median of 26.83%. 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 Shining Tools Ltd?

Shining Tools Ltd Return on equity is 50.51% for FY-2025, which is in line with its 3-year historical median of 50.51%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Shining Tools Ltd?

Shining Tools Ltd Cash conversion cycle is 114 days, in line with its 3-year historical median of 114 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover (x)	0.86	0.67
ROE (%)	50.51	50.51
ROCE (%)	37.69	26.83
Cash Conversion Cycle	114 days	114 days

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

Q.9 Debt to Equity ratio of Shining Tools Ltd?

Shining Tools Ltd Debt-to-Equity ratio is 1.02, which is above the industry average of 0.18, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Shining Tools Ltd?

Shining Tools Ltd Debt to cash flow from operations is 6.91, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Shining Tools Ltd?

Q.1 Promoter shareholding and pledge status of Shining Tools Ltd?

Promoters hold 70.68% of the Shining Tools Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Shining Tools Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Shining Tools Ltd vs industry peers?

Shining Tools Ltd revenue CAGR is 13.52%, compared to the industry median CAGR of 12.49%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth (%)	39.9	12.5
Gross Profit Growth (%)	65.2	26
Operating Profit Growth (%)	56.5	26
Net Profit Growth (%)	85.4	26.6

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover (x)	0.86	0.92
ROE (%)	50.51	16.45
ROCE (%)	37.69	19.55
Cash Conversion Cycle (days)	114.17	97

Valuation & price assessment

Q.1 Stock return of Shining Tools 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 Shining Tools Ltd vs historical?

The current P/E ratio of 14.58 is higher than its historical median of 11.78, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	14.58	11.78	32.30
Price to Book	1.7	1.41	3.57
Price to Sales	2.9	2.34	3.21
EV to EBITDA	7.8	6.54	16.34

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Check Before You Invest : Shining Tools Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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