Check Before You Invest : Snehaa Organics Ltd

Snapshot

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

Snehaa Organics Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

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

Snehaa Organics Ltd is a quality company, based on a 3-year financial track record.

Q.3 Is Snehaa Organics Ltd undervalued or overvalued?

Snehaa Organics Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

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

Snehaa 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 Return on capital employed (ROCE) of Snehaa Organics Ltd?

Snehaa Organics Ltd Return on capital employed is 58.76% for FY-2025, which is above its 3-year historical median of 54.65%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.2 Return on Asset of Snehaa Organics Ltd?

Snehaa Organics Ltd Return on Asset is 31.12%, which is above its 3-year historical median of 26.24%, indicating improved asset utilization efficiency.

Q.3 Return on Equity (ROE) of Snehaa Organics Ltd?

Snehaa Organics Ltd Return on equity is 66.07% for FY-2025, which is in line with its 3-year historical median of 66.07%, indicating the business is making similar use of its shareholders capital.

Q.4 Gross Profit margin of Snehaa Organics Ltd?

Snehaa Organics Ltd Gross profit margin which is the profit after deduction of direct costs, is 42.1% for FY-2025, which is above its 3-year median of 31%, indicating increasing margins.

Q.5 Operating Profit Margin of Snehaa Organics Ltd?

Snehaa Organics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 43.82% for FY-2025, which is above its 3-year median of 30.55% indicating increasing margins.

Q.6 Net Profit Margin of Snehaa Organics Ltd?

Snehaa Organics Ltd Net Profit Margin is 27.98% for FY-2025, is above with its 3-year median of 20.34%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin	42.1	31
Operating Profit Margin	43.82	30.55
Net Profit Margin	27.98	20.34

Q.7 Debt to Equity ratio of Snehaa Organics Ltd?

Snehaa Organics Ltd Debt-to-Equity ratio is 0.61, which is above with the industry average of 0.22, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Snehaa Organics Ltd?

Snehaa Organics Ltd Debt to cash flow from operations is 3.01, which is at a unhealthy level.

Ownership & governance

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

Promoters hold 73.68% of the Snehaa Organics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Snehaa Organics Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 5.98%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	-	6
Gross Profit Growth	89.5	6.3
Operating Profit Growth	97.1	4.1
Net Profit Growth	100.6	1.4

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	1.11	0.97
ROE	66.07	8.26
ROCE	58.76	10.49
Cash Conversion Cycle (days)	75.22	65

Valuation & price assessment

Q.1 Stock return of Snehaa Organics 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 Snehaa Organics Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	6.53	7.44	31.91
Price to Book	2.74	2.86	2.28
Price to Sales	1.83	2.08	1.88
EV to EBITDA	4.91	5.49	15.86

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