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Check Before You Invest : Yuken India Ltd

BSE: 522108 NSE: YUKEN ISIN: INE384C01016
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Compressors / Pumps

Snapshot

Q.1 Which industry/sub-sector does Yuken India Ltd belong to?
Yuken India Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Compressors / Pumps segment.
Q.2 Is Yuken India Ltd a good quality company?
Yuken India Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Yuken India Ltd undervalued or overvalued?
Yuken India Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 64.83 72.78
Price to Book 2.58 3.51
Price to Sales 2.36 2.82
EV to EBITDA 24.69 28.77
Q.4 Is Yuken India Ltd a good buy now?
Yuken India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Yuken India Ltd?
Yuken India Ltd revenue growth is 7.8% for FY-2025, which is below its 5-year CAGR of 14.01%, indicating slower growth.

Q.2 Gross Profit margin of Yuken India Ltd?
Yuken India Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.8% for FY-2025, which is in line with its 5-year median of 7.9%, indicating stable margins.

Q.3 Operating Profit Margin of Yuken India Ltd?
Yuken India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.59% for FY-2025, which is in line with its 5-year median of 8.29% indicating stable margins.

Q.4 Net Profit Margin of Yuken India Ltd?
Yuken India Ltd Net Profit Margin is 3.53% for FY-2025, is below its 5-year median of 4.01%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 7.8 7.9
Operating Profit Margin (%) 8.59 8.29
Net Profit Margin (%) 3.53 4.01

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Yuken India Ltd?
Yuken India Ltd Return on Asset is 3.19%, which is above its 5-year historical median of 3.01%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Yuken India Ltd?
Yuken India Ltd Return on capital employed is 7.34% for FY-2025, which is in line with its 5-year historical median of 7.34%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Yuken India Ltd?
Yuken India Ltd Return on equity is 4.93% for FY-2025, which is in line with its 5-year historical median of 4.93%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Yuken India Ltd?
Yuken India Ltd Cash conversion cycle is 126 days, below its 5-year historical median of 177 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 (x) 0.91 0.79
ROE (%) 4.93 4.93
ROCE (%) 7.34 7.34
Cash Conversion Cycle 126 days 177 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Yuken India Ltd?
Yuken India Ltd Debt-to-Equity ratio is 0.22, which is above the industry average of 0.07, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Yuken India Ltd?
Yuken India Ltd Debt to cash flow from operations is 2.04, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Yuken India Ltd?

Q.1 Promoter shareholding and pledge status of Yuken India Ltd?
Promoters hold 58.04% of the Yuken India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Yuken India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Yuken India Ltd vs industry peers?
Yuken India Ltd revenue CAGR is 14.01%, compared to the industry median CAGR of 14.24%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 7.8 14.2
Gross Profit Growth (%) - 18.9
Operating Profit Growth (%) 10 20.5
Net Profit Growth (%) -6.7 20.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.91 1
ROE (%) 4.93 15
ROCE (%) 7.34 19.99
Cash Conversion Cycle (days) 126.16 92

Valuation & price assessment

Q.1 Stock return of Yuken India Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 23.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
23.5% 7.9% 4.4% -38.4%
Q.2 Valuation ratios of Yuken India Ltd vs historical?
The current P/E ratio of 64.83 is lower than its historical median of 72.78, indicating that the stock is trading below its historical average valuation.
Q.3 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 64.83 72.78 37.40
Price to Book 2.58 3.51 5.31
Price to Sales 2.36 2.82 3.28
EV to EBITDA 24.69 28.77 22.66

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