Check Before You Invest : Supha Pharmachem Ltd

BSE: 539561 NSE: ISIN: INE549S01036

| Sector: Miscellaneous | Industry: Trading

Snapshot

Q.1 Which industry/sub-sector does Supha Pharmachem Ltd belong to?

Supha Pharmachem Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.

Q.2 Is Supha Pharmachem Ltd a good quality company?

Supha Pharmachem Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Supha Pharmachem Ltd undervalued or overvalued?

Supha Pharmachem Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Supha Pharmachem Ltd a good buy now?

Supha Pharmachem 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 Supha Pharmachem Ltd?

Supha Pharmachem Ltd revenue growth is -94.5% for FY-2025, which is below its 5-year CAGR of 138.39%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Supha Pharmachem Ltd?

Supha Pharmachem Ltd Return on capital employed is 1.76% for FY-2025, which is below its 5-year historical median of 18.16%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Supha Pharmachem Ltd?

Supha Pharmachem Ltd Return on Asset is 0.09%, which is below its 5-year historical median of 0.82%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Supha Pharmachem Ltd?

Supha Pharmachem Ltd Return on equity is 3.55% for FY-2025, which is below its 5-year historical median of 24.51%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Supha Pharmachem Ltd?

Supha Pharmachem Ltd Cash conversion cycle is 1038 days, above its 5-year historical median of 21 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	0.13	2.61
ROE	3.55	24.51
ROCE	1.76	18.16
Cash Conversion Cycle	1038 days	21 days

Q.6 Gross Profit margin of Supha Pharmachem Ltd?

Supha Pharmachem Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.7% for FY-2025, which is above its 5-year median of 1.3%, indicating increasing margins.

Q.7 Operating Profit Margin of Supha Pharmachem Ltd?

Supha Pharmachem Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0.24% for FY-2025, which is below its 5-year median of 0.8% indicating decreasing margins.

Q.8 Net Profit Margin of Supha Pharmachem Ltd?

Supha Pharmachem Ltd Net Profit Margin is 0.69% for FY-2025, is in line with with its 5-year median of 0.69%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	1.7	1.3
Operating Profit Margin	0.24	0.8
Net Profit Margin	0.69	0.69

Q.9 Debt to Equity ratio of Supha Pharmachem Ltd?

Supha Pharmachem Ltd Debt-to-Equity ratio is 26.36, which is above with the industry average of 0.17, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Supha Pharmachem Ltd?

Supha Pharmachem Ltd Debt to cash flow from operations is -1.06, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Supha Pharmachem Ltd?

Promoters hold 1.13% of the Supha Pharmachem Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Supha Pharmachem Ltd vs industry peers?

Supha Pharmachem Ltd revenue CAGR is 138.39%, compared to the industry median CAGR of 12.68%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-94.5	12.7
Gross Profit Growth	-92.7	17.9
Operating Profit Growth	-98.4	15.5
Net Profit Growth	-95.3	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.13	0.81
ROE	3.55	2.6
ROCE	1.76	3.8
Cash Conversion Cycle (days)	1038.45	61

Valuation & price assessment

Q.1 Stock return of Supha Pharmachem Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 5.29% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	5.3%	-66.2%	-76.2%

Q.3 Valuation ratios of Supha Pharmachem 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	-	23.73	33.44
Price to Book	0.45	8.14	1.58
Price to Sales	0.28	0.20	2.20
EV to EBITDA	1166.52	22.22	14.05

Check more companies

3. Redington

6. Lloyds Enterprises

7. MMTC

8. Cello World

9. Jeena Sikho Life

10. SG Mart

Check trending companies

1. Info Edge (India) Ltd.

2. Tata Motors Passenger Vehicles Ltd.

3. Bajaj Finserv Ltd.

4. Ultratech Cement Ltd.

5. Titan Company Ltd.