Check Before You Invest : Sturdy Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does Sturdy Industries Ltd belong to?

Sturdy Industries Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.

Q.2 Is Sturdy Industries Ltd a good quality company?

Sturdy Industries Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Sturdy Industries Ltd undervalued or overvalued?

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

Q.4 Is Sturdy Industries Ltd a good buy now?

Sturdy Industries 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 Sturdy Industries Ltd?

Sturdy Industries Ltd revenue growth is -72% for FY-2023, which is below its 5-year CAGR of -56.19%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Sturdy Industries Ltd?

Sturdy Industries Ltd Return on capital employed is -4.97% for FY-2023, which is above its 5-year historical median of -5.74%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Sturdy Industries Ltd?

Sturdy Industries Ltd Return on Asset is -4.89%, which is above its 5-year historical median of -6.22%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Sturdy Industries Ltd?

Sturdy Industries Ltd Return on equity is 0% for FY-2023, which is above its 5-year historical median of -83.31%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Sturdy Industries Ltd?

Sturdy Industries Ltd Cash conversion cycle is 3482 days, above its 5-year historical median of 322 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	0.04	0.38
ROE	-	-83.31
ROCE	-4.97	-5.74
Cash Conversion Cycle	3482 days	322 days

Q.6 Gross Profit margin of Sturdy Industries Ltd?

Sturdy Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is -168.7% for FY-2023, which is below its 5-year median of -52.9%, indicating decreasing margins.

Q.7 Operating Profit Margin of Sturdy Industries Ltd?

Sturdy Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -174.76% for FY-2023, which is below its 5-year median of -84.24% indicating decreasing margins.

Q.8 Net Profit Margin of Sturdy Industries Ltd?

Sturdy Industries Ltd Net Profit Margin is -124.46% for FY-2023, is below with its 5-year median of -57.28%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-168.7	-52.9
Operating Profit Margin	-174.76	-84.24
Net Profit Margin	-124.46	-57.28

Q.9 Debt to Equity ratio of Sturdy Industries Ltd?

Sturdy Industries Ltd Debt-to-Equity ratio is -2.38, which is lower with the industry average of 0.33, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Sturdy Industries Ltd?

Sturdy Industries Ltd Debt to cash flow from operations is -130.99, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sturdy Industries Ltd?

Promoters hold 12.09% of the Sturdy Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sturdy Industries Ltd vs industry peers?

Sturdy Industries Ltd revenue CAGR is -56.19%, compared to the industry median CAGR of 7%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-72	7
Gross Profit Growth	0	NAN
Operating Profit Growth	0	11
Net Profit Growth	-217.6	17.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.04	1.14
ROE	-	7.53
ROCE	-4.97	8.9
Cash Conversion Cycle (days)	3481.58	86

Valuation & price assessment

Q.1 Stock return of Sturdy Industries Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -15.4% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-15.4%	-10.8%	-18.1%	-29%

Q.3 Valuation ratios of Sturdy Industries 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	-	2.28	21.91
Price to Book	-	-0.03	1.89
Price to Sales	4.97	4.97	1.33
EV to EBITDA	-21.64	-21.96	11.02

Check more companies

1. Shaily Engg. Plastic

7. Polyplex Corporation

8. Prince Pipes & Fitti

9. Ddev Plastiks Ind.

10. Xpro India

Check trending companies

1. Titagarh Rail Systems Ltd.

2. Info Edge (India) Ltd.

3. Tata Motors Passenger Vehicles Ltd.

4. Bajaj Finserv Ltd.

5. Ultratech Cement Ltd.