Check Before You Invest : Sreechem Resins Ltd

BSE: 514248 NSE: ISIN: INE377C01010

| Sector: Chemicals & Fertilizers | Industry: Chemicals

Snapshot

Q.1 Which industry/sub-sector does Sreechem Resins Ltd belong to?

Sreechem Resins Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is Sreechem Resins Ltd a good quality company?

Sreechem Resins Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Sreechem Resins Ltd undervalued or overvalued?

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

Q.4 Is Sreechem Resins Ltd a good buy now?

Sreechem Resins 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 Sreechem Resins Ltd?

Sreechem Resins Ltd revenue growth is -33% for FY-2025, which is below its 5-year CAGR of 3.63%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Sreechem Resins Ltd?

Sreechem Resins Ltd Return on capital employed is -1.16% for FY-2025, which is below its 5-year historical median of 22.22%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Sreechem Resins Ltd?

Sreechem Resins Ltd Return on Asset is -1.93%, which is below its 5-year historical median of 10.78%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Sreechem Resins Ltd?

Sreechem Resins Ltd Return on equity is -2.63% for FY-2025, which is below its 5-year historical median of 18.64%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Sreechem Resins Ltd?

Sreechem Resins Ltd Cash conversion cycle is 100 days, above its 5-year historical median of 65 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	1.86	2.84
ROE	-2.63	18.64
ROCE	-1.16	22.22
Cash Conversion Cycle	100 days	65 days

Q.6 Gross Profit margin of Sreechem Resins Ltd?

Sreechem Resins Ltd Gross profit margin which is the profit after deduction of direct costs, is 0.1% for FY-2025, which is below its 5-year median of 6.1%, indicating decreasing margins.

Q.7 Operating Profit Margin of Sreechem Resins Ltd?

Sreechem Resins Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0.51% for FY-2025, which is below its 5-year median of 6.97% indicating decreasing margins.

Q.8 Net Profit Margin of Sreechem Resins Ltd?

Sreechem Resins Ltd Net Profit Margin is -1.04% for FY-2025, is below with its 5-year median of 4.27%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	0.1	6.1
Operating Profit Margin	0.51	6.97
Net Profit Margin	-1.04	4.27

Q.9 Debt to Equity ratio of Sreechem Resins Ltd?

Sreechem Resins Ltd Debt-to-Equity ratio is 0.16, which is lower with the industry average of 0.26, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Sreechem Resins Ltd?

Sreechem Resins Ltd Debt to cash flow from operations is 0.68, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sreechem Resins Ltd?

Promoters hold 24.80% of the Sreechem Resins Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sreechem Resins Ltd vs industry peers?

Sreechem Resins Ltd revenue CAGR is 3.63%, compared to the industry median CAGR of 9.62%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-33	9.6
Gross Profit Growth	-99.5	14.3
Operating Profit Growth	-95.6	12
Net Profit Growth	-115.7	12.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.86	0.97
ROE	-2.63	10.68
ROCE	-1.16	13.26
Cash Conversion Cycle (days)	100.14	63

Valuation & price assessment

Q.1 Stock return of Sreechem Resins Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 19.67% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	19.7%	-8.8%	-10.4%

Q.3 Valuation ratios of Sreechem Resins 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	-	6.85	27.93
Price to Book	1.28	1.62	2.22
Price to Sales	0.55	0.40	1.93
EV to EBITDA	-105.35	5.86	14.18

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