Check Before You Invest : Aditya Ispat Ltd

Snapshot

Q.1 Which industry/sub-sector does Aditya Ispat Ltd belong to?

Aditya Ispat Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.

Q.2 Is Aditya Ispat Ltd a good quality company?

Aditya Ispat Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Aditya Ispat Ltd undervalued or overvalued?

Aditya Ispat Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Aditya Ispat Ltd a good buy now?

Aditya Ispat 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 Aditya Ispat Ltd?

Aditya Ispat Ltd revenue growth is -29.2% for FY-2025, which is below its 5-year CAGR of 7.39%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Aditya Ispat Ltd?

Aditya Ispat Ltd Return on capital employed is 2.5% for FY-2025, which is below its 5-year historical median of 5.67%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Aditya Ispat Ltd?

Aditya Ispat Ltd Return on Asset is -1.89%, which is below its 5-year historical median of 0.57%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Aditya Ispat Ltd?

Aditya Ispat Ltd Return on equity is -9.58% for FY-2025, which is below its 5-year historical median of 2.79%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Aditya Ispat Ltd?

Aditya Ispat Ltd Cash conversion cycle is 135 days, in line with its 5-year historical median of 135 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.06	1.06
ROE	-9.58	2.79
ROCE	2.5	5.67
Cash Conversion Cycle	135 days	135 days

Q.6 Gross Profit margin of Aditya Ispat Ltd?

Aditya Ispat Ltd Gross profit margin which is the profit after deduction of direct costs, is 0.1% for FY-2025, which is below its 5-year median of 2%, indicating decreasing margins.

Q.7 Operating Profit Margin of Aditya Ispat Ltd?

Aditya Ispat Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -3.03% for FY-2025, which is below its 5-year median of 4.96% indicating decreasing margins.

Q.8 Net Profit Margin of Aditya Ispat Ltd?

Aditya Ispat Ltd Net Profit Margin is -1.78% for FY-2025, is below with its 5-year median of 0.55%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	0.1	2
Operating Profit Margin	-3.03	4.96
Net Profit Margin	-1.78	0.55

Q.9 Debt to Equity ratio of Aditya Ispat Ltd?

Aditya Ispat Ltd Debt-to-Equity ratio is 3.29, which is above with the industry average of 0.35, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Aditya Ispat Ltd?

Aditya Ispat Ltd Debt to cash flow from operations is 4.24, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Aditya Ispat Ltd?

Promoters hold 24.32% of the Aditya Ispat Ltd, with 100.00% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Aditya Ispat Ltd vs industry peers?

Aditya Ispat Ltd revenue CAGR is 7.39%, compared to the industry median CAGR of 11.40%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-29.2	11.4
Gross Profit Growth	0	19.8
Operating Profit Growth	-215.7	13.9
Net Profit Growth	0	25.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.06	1.33
ROE	-9.58	9.64
ROCE	2.5	12.04
Cash Conversion Cycle (days)	135.28	80

Valuation & price assessment

Q.1 Stock return of Aditya Ispat Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 13.3% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	13.3%	11.8%	3.1%	12.1%

Q.3 Valuation ratios of Aditya Ispat 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	-	12.62	17.26
Price to Book	1.03	0.53	1.63
Price to Sales	0.18	0.10	0.74
EV to EBITDA	-32.36	10.51	10.03

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