Check Before You Invest : Vamshi Rubber Ltd

Snapshot

Q.1 Which industry/sub-sector does Vamshi Rubber Ltd belong to?

Vamshi Rubber Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Rubber Products segment.

Q.2 Is Vamshi Rubber Ltd a good quality company?

Vamshi Rubber Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Vamshi Rubber Ltd undervalued or overvalued?

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

Q.4 Is Vamshi Rubber Ltd a good buy now?

Vamshi Rubber 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 Vamshi Rubber Ltd?

Vamshi Rubber Ltd revenue growth is 10.8% for FY-2025, which is above its 5-year CAGR of 9.01%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Vamshi Rubber Ltd?

Vamshi Rubber Ltd Return on capital employed is 8.18% for FY-2025, which is above its 5-year historical median of 7.06%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Vamshi Rubber Ltd?

Vamshi Rubber Ltd Return on Asset is 1.54%, which is above its 5-year historical median of 0.2%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Vamshi Rubber Ltd?

Vamshi Rubber Ltd Return on equity is 4.79% for FY-2025, which is above its 5-year historical median of 0.72%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Vamshi Rubber Ltd?

Vamshi Rubber Ltd Cash conversion cycle is 89 days, below its 5-year historical median of 101 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.95	1.75
ROE	4.79	0.72
ROCE	8.18	7.06
Cash Conversion Cycle	89 days	101 days

Q.6 Gross Profit margin of Vamshi Rubber Ltd?

Vamshi Rubber Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.2% for FY-2025, which is above its 5-year median of 1.7%, indicating increasing margins.

Q.7 Operating Profit Margin of Vamshi Rubber Ltd?

Vamshi Rubber Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.93% for FY-2025, which is in line with its 5-year median of 3.93% indicating stable margins.

Q.8 Net Profit Margin of Vamshi Rubber Ltd?

Vamshi Rubber Ltd Net Profit Margin is 0.79% for FY-2025, is above with its 5-year median of 0.12%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	2.2	1.7
Operating Profit Margin	3.93	3.93
Net Profit Margin	0.79	0.12

Q.9 Debt to Equity ratio of Vamshi Rubber Ltd?

Vamshi Rubber Ltd Debt-to-Equity ratio is 1.42, which is above with the industry average of 0.58, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Vamshi Rubber Ltd?

Vamshi Rubber Ltd Debt to cash flow from operations is -52.87, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Vamshi Rubber Ltd?

Promoters hold 57.00% of the Vamshi Rubber Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Vamshi Rubber Ltd vs industry peers?

Vamshi Rubber Ltd revenue CAGR is 9.01%, compared to the industry median CAGR of 12.4%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	10.8	12.4
Gross Profit Growth	7.3	17.6
Operating Profit Growth	-	12.6
Net Profit Growth	11.5	15.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.95	1.32
ROE	4.79	6.21
ROCE	8.18	7.92
Cash Conversion Cycle (days)	89.21	79

Valuation & price assessment

Q.1 Stock return of Vamshi Rubber Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 1.4% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	1.4%	19.5%	24%	2.5%

Q.3 Valuation ratios of Vamshi Rubber 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	18.98	33.26	25.66
Price to Book	1.2	0.94	2.71
Price to Sales	0.22	0.17	1.32
EV to EBITDA	10.24	10.83	13.76

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