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Check Before You Invest : Siddhika Coatings Ltd

BSE: 0 NSE: SIDDHIKA ISIN: INE0A1E01018
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Siddhika Coatings Ltd belong to?
Siddhika Coatings Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Siddhika Coatings Ltd a good quality company?
Siddhika Coatings Ltd is a good quality company, based on a consistently good 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 Siddhika Coatings Ltd undervalued or overvalued?
Siddhika Coatings 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 5-year
Historic Median
Price to Earnings 14.28 18.61
Price to Book 3.89 2.49
Price to Sales 2.57 2.27
EV to EBITDA 10.15 12.06
Q.4 Is Siddhika Coatings Ltd a good buy now?
Siddhika Coatings Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Siddhika Coatings Ltd?
Siddhika Coatings Ltd revenue growth is 30.4% for FY-2025, which is above its 5-year CAGR of 10.24%, indicating faster growth.

Q.2 Gross Profit margin of Siddhika Coatings Ltd?
Siddhika Coatings Ltd Gross profit margin which is the profit after deduction of direct costs, is 22.6% for FY-2025, which is above its 5-year median of 14.9%, indicating increasing margins.

Q.3 Operating Profit Margin of Siddhika Coatings Ltd?
Siddhika Coatings Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.94% for FY-2025, which is above its 5-year median of 13.51% indicating increasing margins.

Q.4 Net Profit Margin of Siddhika Coatings Ltd?
Siddhika Coatings Ltd Net Profit Margin is 16.72% for FY-2025, is above its 5-year median of 10.94%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 22.6 14.9
Operating Profit Margin (%) 19.94 13.51
Net Profit Margin (%) 16.72 10.94

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Siddhika Coatings Ltd?
Siddhika Coatings Ltd Return on Asset is 19.15%, which is above its 5-year historical median of 11.77%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Siddhika Coatings Ltd?
Siddhika Coatings Ltd Return on capital employed is 32.52% for FY-2025, which is above its 5-year historical median of 19.13%. 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 Siddhika Coatings Ltd?
Siddhika Coatings Ltd Return on equity is 24.56% for FY-2025, which is above its 5-year historical median of 14.51%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Siddhika Coatings Ltd?
Siddhika Coatings Ltd Cash conversion cycle is 54 days, below its 5-year historical median of 82 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.15 1.03
ROE (%) 24.56 14.51
ROCE (%) 32.52 19.13
Cash Conversion Cycle 54 days 82 days

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

Q.9 Debt to Equity ratio of Siddhika Coatings Ltd?
Siddhika Coatings Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.03, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Siddhika Coatings Ltd?
Siddhika Coatings Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Siddhika Coatings Ltd?

Q.1 Promoter shareholding and pledge status of Siddhika Coatings Ltd?
Promoters hold 63.09% of the Siddhika Coatings Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Siddhika Coatings Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Siddhika Coatings Ltd vs industry peers?
Siddhika Coatings Ltd revenue CAGR is 10.24%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 30.4 -
Gross Profit Growth (%) 57.1 17.7
Operating Profit Growth (%) 66.7 16.1
Net Profit Growth (%) 100 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.15 0.52
ROE (%) 24.56 2.05
ROCE (%) 32.52 3.6
Cash Conversion Cycle (days) 53.89 46

Valuation & price assessment

Q.1 Stock return of Siddhika Coatings Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 32.96% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 33% 6.6% 17.5%
Q.2 Valuation ratios of Siddhika Coatings Ltd vs historical?
The current P/E ratio of 14.28 is lower than its historical median of 18.61, indicating that the stock is trading below 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 14.28 18.61 33.62
Price to Book 3.89 2.49 1.57
Price to Sales 2.57 2.27 2.21
EV to EBITDA 10.15 12.06 14.09

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