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Check Before You Invest : Ushanti Colour Chem Ltd

BSE: 0 NSE: UCL ISIN: INE00NI01015
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Dyes & Pigments

Snapshot

Q.1 Which industry/sub-sector does Ushanti Colour Chem Ltd belong to?
Ushanti Colour Chem Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Dyes & Pigments segment.
Q.2 Is Ushanti Colour Chem Ltd a good quality company?
Ushanti Colour Chem Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Ushanti Colour Chem Ltd undervalued or overvalued?
Ushanti Colour Chem Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Ushanti Colour Chem Ltd a good buy now?
Ushanti Colour Chem Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Ushanti Colour Chem Ltd?
Ushanti Colour Chem Ltd revenue growth is 14.1% for FY-2025 , which is above its 5 year CAGR of 1.1% , indicating faster growth.
Q.2 Gross Profit margin of Ushanti Colour Chem Ltd?
Ushanti Colour Chem Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.2% for FY-2025 , which is below its 5 year median of 8% , indicating decreasing margins.
Q.3 Operating Profit Margin of Ushanti Colour Chem Ltd?
Ushanti Colour Chem Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.85% for FY-2025 , which is below its 5 year median of 3.08% indicating decreasing margins.
Q.4 Net Profit Margin of Ushanti Colour Chem Ltd?
Ushanti Colour Chem Ltd Net Profit Margin is 3.73% for FY-2025 , is in line with with its 5 year median of 3.73%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 7.2 8
Operating Profit Margin 2.85 3.08
Net Profit Margin 3.73 3.73
Q.5 Return on Asset of Ushanti Colour Chem Ltd?
Ushanti Colour Chem Ltd Return on Asset is 2.56%, which is below its 5 year historical median of 3.19%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Ushanti Colour Chem Ltd?
Ushanti Colour Chem Ltd Return on equity is 3.35% for FY-2025 , which is below its historical median of 4.7%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Ushanti Colour Chem Ltd?
Ushanti Colour Chem Ltd Return on capital employed is 4.78% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Ushanti Colour Chem Ltd?
Ushanti Colour Chem Ltd Cash conversion cycle is 81 days, below its historical median of 89 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.69 0.78
ROE 3.35 4.7
ROCE 4.78 5.03
Cash Conversion Cycle 81 days 89 days
Q.9 Debt to Equity ratio of Ushanti Colour Chem Ltd?
Ushanti Colour Chem Ltd Debt-to-Equity ratio is 0.23 , which is lower with the industry average of 0.24 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Ushanti Colour Chem Ltd?
Ushanti Colour Chem Ltd Debt to cash flow from operations is 6.94 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Ushanti Colour Chem Ltd?
Promoters hold 54.91% of the Ushanti Colour Chem Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Ushanti Colour Chem Ltd vs industry peers?
Ushanti Colour Chem Ltd revenue CAGR is 1.10% , compared to the industry median CAGR of 5.24% , indicating stable growth and maintaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 48.6 167.5
Gross Profit 3.5 7.9
Operating Profit 1 7.6
Net Profit 2 4.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.69 0.98
ROE 3.35 6.82
ROCE 4.78 9.46
Cash Conversion Cycle (days) 80.71 76

Valuation & price assessment

Q.1 Stock return of Ushanti Colour Chem Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 23.34% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 23.3% 13.7% 82%
Q.3 Valuation ratios of Ushanti Colour Chem Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 78.61 37.09 2.71
Price to Book 2.41 1.40 1.48
Price to Sales 2.94 1.57 1.19
EV to EBITDA 33.41 18.46 11.70

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