Check Before You Invest : Amco India Ltd

Snapshot

Q.1 Which industry/sub-sector does Amco India Ltd belong to?

Amco India Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.

Q.2 Is Amco India Ltd a good quality company?

Amco India Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Amco India Ltd undervalued or overvalued?

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

Q.4 Is Amco India Ltd a good buy now?

Amco India 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 Amco India Ltd?

Amco India Ltd revenue growth is 1.7% for FY-2025, which is below its 5-year CAGR of 4.34%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Amco India Ltd?

Amco India Ltd Return on capital employed is 7.32% for FY-2025, which is above its 5-year historical median of 6.97%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Amco India Ltd?

Amco India Ltd Return on Asset is 3.4%, which is above its 5-year historical median of 2.88%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Amco India Ltd?

Amco India Ltd Return on equity is 5.13% for FY-2025, which is in line with its 5-year historical median of 4.98%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Amco India Ltd?

Amco India Ltd Cash conversion cycle is 80 days, above its 5-year historical median of 74 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.92	1.92
ROE	5.13	4.98
ROCE	7.32	6.97
Cash Conversion Cycle	80 days	74 days

Q.6 Gross Profit margin of Amco India Ltd?

Amco India Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.3% for FY-2025, which is in line with its 5-year median of 3.2%, indicating stable margins.

Q.7 Operating Profit Margin of Amco India Ltd?

Amco India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.03% for FY-2025, which is in line with its 5-year median of 3.03% indicating stable margins.

Q.8 Net Profit Margin of Amco India Ltd?

Amco India Ltd Net Profit Margin is 1.78% for FY-2025, is above with its 5-year median of 1.66%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	3.3	3.2
Operating Profit Margin	3.03	3.03
Net Profit Margin	1.78	1.66

Q.9 Debt to Equity ratio of Amco India Ltd?

Amco India Ltd Debt-to-Equity ratio is 0.34, which is above with the industry average of 0.33, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Amco India Ltd?

Amco India Ltd Debt to cash flow from operations is -3.17, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Amco India Ltd?

Promoters hold 65.55% of the Amco India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Amco India Ltd vs industry peers?

Amco India Ltd revenue CAGR is 4.34%, compared to the industry median CAGR of 7%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	1.7	7
Gross Profit Growth	57.9	NAN
Operating Profit Growth	125	11
Net Profit Growth	125.3	17.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.92	1.14
ROE	5.13	7.53
ROCE	7.32	8.9
Cash Conversion Cycle (days)	79.68	86

Valuation & price assessment

Q.1 Stock return of Amco India Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 16.8% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	16.8%	16.9%	6.5%	-0.3%

Q.3 Valuation ratios of Amco India Ltd vs historical?

The current P/E is higher 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	44.66	18.64	21.91
Price to Book	0.74	0.79	1.89
Price to Sales	0.25	0.21	1.33
EV to EBITDA	13.04	9.40	11.02

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