Check Before You Invest : Vasundhara Rasayans Ltd

Snapshot

Q.1 Which industry/sub-sector does Vasundhara Rasayans Ltd belong to?

Vasundhara Rasayans Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q.2 Is Vasundhara Rasayans Ltd a good quality company?

Vasundhara Rasayans Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Vasundhara Rasayans Ltd undervalued or overvalued?

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

Q.4 Is Vasundhara Rasayans Ltd a good buy now?

Vasundhara Rasayans 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 Vasundhara Rasayans Ltd?

Vasundhara Rasayans Ltd revenue growth is -8.2% for FY-2025, which is below its 5-year CAGR of 9.82%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Vasundhara Rasayans Ltd?

Vasundhara Rasayans Ltd Return on capital employed is 16.58% for FY-2025, which is below its 5-year historical median of 21.74%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Vasundhara Rasayans Ltd?

Vasundhara Rasayans Ltd Return on Asset is 10.57%, which is below its 5-year historical median of 12.31%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Vasundhara Rasayans Ltd?

Vasundhara Rasayans Ltd Return on equity is 12.58% for FY-2025, which is below its 5-year historical median of 15.75%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Vasundhara Rasayans Ltd?

Vasundhara Rasayans Ltd Cash conversion cycle is 51 days, below its 5-year historical median of 76 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	0.85	1.03
ROE	12.58	15.75
ROCE	16.58	21.74
Cash Conversion Cycle	51 days	76 days

Q.6 Gross Profit margin of Vasundhara Rasayans Ltd?

Vasundhara Rasayans Ltd Gross profit margin which is the profit after deduction of direct costs, is 18% for FY-2025, which is in line with its 5-year median of 18%, indicating stable margins.

Q.7 Operating Profit Margin of Vasundhara Rasayans Ltd?

Vasundhara Rasayans Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.1% for FY-2025, which is below its 5-year median of 13.71% indicating decreasing margins.

Q.8 Net Profit Margin of Vasundhara Rasayans Ltd?

Vasundhara Rasayans Ltd Net Profit Margin is 12.49% for FY-2025, is in line with with its 5-year median of 12.94%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	18	18
Operating Profit Margin	12.1	13.71
Net Profit Margin	12.49	12.94

Q.9 Debt to Equity ratio of Vasundhara Rasayans Ltd?

Vasundhara Rasayans Ltd Debt-to-Equity ratio is 0.12, which is lower with the industry average of 0.27, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Vasundhara Rasayans Ltd?

Vasundhara Rasayans Ltd Debt to cash flow from operations is -0.72, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Vasundhara Rasayans Ltd?

Promoters hold 61.98% of the Vasundhara Rasayans Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Vasundhara Rasayans Ltd vs industry peers?

Vasundhara Rasayans Ltd revenue CAGR is 9.82%, compared to the industry median CAGR of 8.30%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-8.2	8.3
Gross Profit Growth	-25	14.7
Operating Profit Growth	-36.1	11.4
Net Profit Growth	-27.5	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.85	0.81
ROE	12.58	9.49
ROCE	16.58	11.91
Cash Conversion Cycle (days)	51.23	85

Valuation & price assessment

Q.1 Stock return of Vasundhara Rasayans Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 16.5% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	16.5%	9.2%	-8%	-41%

Q.3 Valuation ratios of Vasundhara Rasayans 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	10.82	14.24	31.09
Price to Book	1.03	1.87	2.85
Price to Sales	1.3	1.67	2.79
EV to EBITDA	7.52	9.50	15.87

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