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Check Before You Invest : Simplex Castings Ltd

BSE: 513472 NSE: SIMPLEXCAS ISIN: INE658D01011
  |   Sector:  Automobiles   |   Industry:  Castings/Forgings

Snapshot

Q.1 Which industry/sub-sector does Simplex Castings Ltd belong to?
Simplex Castings Ltd belongs to the Automobiles sector, operating specifically within the Castings/Forgings segment.
Q.2 Is Simplex Castings Ltd a good quality company?
Simplex Castings Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Simplex Castings Ltd undervalued or overvalued?
Simplex Castings Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Simplex Castings Ltd a good buy now?
Simplex Castings 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 Simplex Castings Ltd?
Simplex Castings Ltd revenue growth is 40.7% for FY-2025 , which is above its 5 year CAGR of 25.2% , indicating faster growth.
Q.2 Gross Profit margin of Simplex Castings Ltd?
Simplex Castings Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.7% for FY-2025 , which is above its 5 year median of 6.5% , indicating increasing margins.
Q.3 Operating Profit Margin of Simplex Castings Ltd?
Simplex Castings Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.11% for FY-2025 , which is above its 5 year median of 15.67% indicating increasing margins.
Q.4 Net Profit Margin of Simplex Castings Ltd?
Simplex Castings Ltd Net Profit Margin is 8.8% for FY-2025 , is above with its 5 year median of 1.66%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 13.7 6.5
Operating Profit Margin 18.11 15.67
Net Profit Margin 8.8 1.66
Q.5 Return on Asset of Simplex Castings Ltd?
Simplex Castings Ltd Return on Asset is 9.84%, which is above its 5 year historical median of 0.93%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Simplex Castings Ltd?
Simplex Castings Ltd Return on equity is 33.69% for FY-2025 , which is above its historical median of 3.27%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Simplex Castings Ltd?
Simplex Castings Ltd Return on capital employed is 24.1% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Simplex Castings Ltd?
Simplex Castings Ltd Cash conversion cycle is 160 days, above its historical median of 160 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.12 0.77
ROE 33.69 3.27
ROCE 24.1 10
Cash Conversion Cycle 160 days 160 days
Q.9 Debt to Equity ratio of Simplex Castings Ltd?
Simplex Castings Ltd Debt-to-Equity ratio is 1.36 , which is above with the industry average of 0.34 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Simplex Castings Ltd?
Simplex Castings Ltd Debt to cash flow from operations is 8.43 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Simplex Castings Ltd?
Promoters hold 50.39% of the Simplex Castings Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Simplex Castings Ltd vs industry peers?
Simplex Castings Ltd revenue CAGR is 25.23% , compared to the industry median CAGR of 7.48% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 171.9 138.5
Gross Profit 23.6 12.1
Operating Profit 31 13.6
Net Profit 15 5.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.12 1.22
ROE 33.69 9.98
ROCE 24.1 12.36
Cash Conversion Cycle (days) 159.93 78

Valuation & price assessment

Q.1 Stock return of Simplex Castings Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 16.1% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 16.1% 99.5% 124.4% 90%
Q.3 Valuation ratios of Simplex Castings Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 19.97 0.00 38.01
Price to Book 3.49 0.31 2.45
Price to Sales 1.73 0.22 1.59
EV to EBITDA 11.86 0.00 12.17

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