Check Before You Invest : Smruthi Organics Ltd

Snapshot

Q.1 Which industry/sub-sector does Smruthi Organics Ltd belong to?

Smruthi Organics Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q.2 Is Smruthi Organics Ltd a good quality company?

Smruthi Organics Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Smruthi Organics Ltd undervalued or overvalued?

Smruthi Organics Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Smruthi Organics Ltd a good buy now?

Smruthi Organics 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 Smruthi Organics Ltd?

Smruthi Organics Ltd revenue growth is -1.3% for FY-2025, which is below its 5-year CAGR of -0.78%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Smruthi Organics Ltd?

Smruthi Organics Ltd Return on capital employed is 7.98% for FY-2025, which is in line with its 5-year historical median of 8.22%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Smruthi Organics Ltd?

Smruthi Organics Ltd Return on Asset is 3.07%, which is below its 5-year historical median of 4.24%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Smruthi Organics Ltd?

Smruthi Organics Ltd Return on equity is 5.04% for FY-2025, which is below its 5-year historical median of 6.11%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Smruthi Organics Ltd?

Smruthi Organics Ltd Cash conversion cycle is 119 days, above its 5-year historical median of 92 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.09	1.41
ROE	5.04	6.11
ROCE	7.98	8.22
Cash Conversion Cycle	119 days	92 days

Q.6 Gross Profit margin of Smruthi Organics Ltd?

Smruthi Organics Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.2% for FY-2025, which is in line with its 5-year median of 8.2%, indicating stable margins.

Q.7 Operating Profit Margin of Smruthi Organics Ltd?

Smruthi Organics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.65% for FY-2025, which is in line with its 5-year median of 9.65% indicating stable margins.

Q.8 Net Profit Margin of Smruthi Organics Ltd?

Smruthi Organics Ltd Net Profit Margin is 2.83% for FY-2025, is in line with with its 5-year median of 2.93%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	8.2	8.2
Operating Profit Margin	9.65	9.65
Net Profit Margin	2.83	2.93

Q.9 Debt to Equity ratio of Smruthi Organics Ltd?

Smruthi Organics Ltd Debt-to-Equity ratio is 0.23, which is lower with the industry average of 0.27, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Smruthi Organics Ltd?

Smruthi Organics Ltd Debt to cash flow from operations is 1.68, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Smruthi Organics Ltd?

Promoters hold 64.73% of the Smruthi Organics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Smruthi Organics Ltd vs industry peers?

Smruthi Organics Ltd revenue CAGR is -0.78%, compared to the industry median CAGR of 8.30%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-1.3	8.3
Gross Profit Growth	-9.1	14.7
Operating Profit Growth	-	11.4
Net Profit Growth	-	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.09	0.81
ROE	5.04	9.49
ROCE	7.98	11.91
Cash Conversion Cycle (days)	118.94	85

Valuation & price assessment

Q.1 Stock return of Smruthi Organics Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of -14.06% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-14.1%	-10.3%	1.6%

Q.3 Valuation ratios of Smruthi Organics 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	28.65	31.09	31.09
Price to Book	1.82	2.68	2.85
Price to Sales	1.18	1.40	2.79
EV to EBITDA	9.9	13.81	15.87

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