Check Before You Invest : SPEB Adhesives Ltd

Snapshot

Q.1 Which industry/sub-sector does SPEB Adhesives Ltd belong to?

SPEB Adhesives Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is SPEB Adhesives Ltd a good quality company?

SPEB Adhesives Ltd is a weak quality company, based on a inconsistent 4-year financial track record.

Q.3 Is SPEB Adhesives Ltd undervalued or overvalued?

SPEB Adhesives Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is SPEB Adhesives Ltd a good buy now?

SPEB Adhesives Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of SPEB Adhesives Ltd?

SPEB Adhesives Ltd revenue growth is 5.1% for FY-2025, which is below its 3-year CAGR of 17.08%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of SPEB Adhesives Ltd?

SPEB Adhesives Ltd Return on capital employed is 36.37% for FY-2025, which is above its 3-year historical median of 34.23%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of SPEB Adhesives Ltd?

SPEB Adhesives Ltd Return on Asset is 24.58%, which is in line with its 3-year historical median of 24.33%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of SPEB Adhesives Ltd?

SPEB Adhesives Ltd Return on equity is 26.3% for FY-2025, which is in line with its 3-year historical median of 25.37%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of SPEB Adhesives Ltd?

SPEB Adhesives Ltd Cash conversion cycle is 67 days, below its 3-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	3-year Historic Median
Asset Turnover	1.87	1.99
ROE	26.3	25.37
ROCE	36.37	34.23
Cash Conversion Cycle	67 days	82 days

Q.6 Gross Profit margin of SPEB Adhesives Ltd?

SPEB Adhesives Ltd Gross profit margin which is the profit after deduction of direct costs, is 19.1% for FY-2025, which is above its 3-year median of 16.7%, indicating increasing margins.

Q.7 Operating Profit Margin of SPEB Adhesives Ltd?

SPEB Adhesives Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.89% for FY-2025, which is above its 3-year median of 15.36% indicating increasing margins.

Q.8 Net Profit Margin of SPEB Adhesives Ltd?

SPEB Adhesives Ltd Net Profit Margin is 13.16% for FY-2025, is above with its 3-year median of 11.58%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin	19.1	16.7
Operating Profit Margin	17.89	15.36
Net Profit Margin	13.16	11.58

Q.9 Debt to Equity ratio of SPEB Adhesives Ltd?

SPEB Adhesives Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.22, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of SPEB Adhesives Ltd?

SPEB Adhesives Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of SPEB Adhesives Ltd?

Promoters hold 73.18% of the SPEB Adhesives Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of SPEB Adhesives Ltd vs industry peers?

SPEB Adhesives Ltd revenue CAGR is 17.08%, compared to the industry median CAGR of 5.98%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	5.1	6
Gross Profit Growth	28.6	6.3
Operating Profit Growth	14.3	4.1
Net Profit Growth	20	1.4

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	1.87	0.97
ROE	26.3	8.26
ROCE	36.37	10.49
Cash Conversion Cycle (days)	66.78	65

Valuation & price assessment

Q.1 Stock return of SPEB Adhesives 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 SPEB Adhesives Ltd vs historical?

The current P/E is similar 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	21.42	20.58	31.91
Price to Book	4.18	3.93	2.28
Price to Sales	2.82	2.71	1.88
EV to EBITDA	12.97	12.40	15.86

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