Check Before You Invest : Arunaya Organics Ltd

Q: Which industry/sub-sector does Arunaya Organics Ltd belong to?

Arunaya Organics Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Dyes & Pigments segment.

Q: Is Arunaya Organics Ltd a good quality company?

Arunaya Organics Ltd is a quality company, based on a 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: Is Arunaya Organics Ltd undervalued or overvalued?

Arunaya Organics Ltd appears 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. Price to Earnings, Current: 7.52, Historic Median: 8.59. Price to Book, Current: 1.43, Historic Median: 1.50. Price to Sales, Current: 0.38, Historic Median: 0.44. EV to EBITDA, Current: 6.34, Historic Median: 6.89

Q: Is Arunaya Organics Ltd a good buy now?

Arunaya Organics 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

Q: Revenue growth of Arunaya Organics Ltd?

Arunaya Organics Ltd revenue growth is 32.8% for FY-2025, which is above its 3-year CAGR of 10.33%, indicating faster growth.

Q: Gross Profit margin of Arunaya Organics Ltd?

Arunaya Organics Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.9% for FY-2025, which is in line with its 3-year median of 6.9%, indicating stable margins.

Q: Operating Profit Margin of Arunaya Organics Ltd?

Arunaya Organics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.61% for FY-2025, which is in line with its 3-year median of 8.61% indicating stable margins.

Q: Net Profit Margin of Arunaya Organics Ltd?

Arunaya Organics Ltd Net Profit Margin is 5.11% for FY-2025, is in line with its 3-year median of 5.11%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 6.9, Historic Median: 6.9. Operating Profit Margin (%), Current: 8.61, Historic Median: 8.61. Net Profit Margin (%), Current: 5.11, Historic Median: 5.11

Q: Return on Asset of Arunaya Organics Ltd?

Arunaya Organics Ltd Return on Asset is 7.97%, which is in line with its 3-year historical median of 7.97%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Arunaya Organics Ltd?

Arunaya Organics Ltd Return on capital employed is 25.35% for FY-2025, which is in line with its 3-year historical median of 25.35%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Arunaya Organics Ltd

Snapshot

Q.1 Which industry/sub-sector does Arunaya Organics Ltd belong to?

Arunaya Organics Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Dyes & Pigments segment.

Q.2 Is Arunaya Organics Ltd a good quality company?

Arunaya Organics Ltd is a quality company, based on a 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 Arunaya Organics Ltd undervalued or overvalued?

Arunaya Organics Ltd appears 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	3-year Historic Median
Price to Earnings	7.52	8.59
Price to Book	1.43	1.50
Price to Sales	0.38	0.44
EV to EBITDA	6.34	6.89

Q.4 Is Arunaya Organics Ltd a good buy now?

Arunaya Organics 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

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 Arunaya Organics Ltd?

Arunaya Organics Ltd revenue growth is 32.8% for FY-2025, which is above its 3-year CAGR of 10.33%, indicating faster growth.

Q.2 Gross Profit margin of Arunaya Organics Ltd?

Arunaya Organics Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.9% for FY-2025, which is in line with its 3-year median of 6.9%, indicating stable margins.

Q.3 Operating Profit Margin of Arunaya Organics Ltd?

Arunaya Organics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.61% for FY-2025, which is in line with its 3-year median of 8.61% indicating stable margins.

Q.4 Net Profit Margin of Arunaya Organics Ltd?

Arunaya Organics Ltd Net Profit Margin is 5.11% for FY-2025, is in line with its 3-year median of 5.11%, indicating stable margins.

	Current Level	3-year Historic Median
Gross Profit Margin (%)	6.9	6.9
Operating Profit Margin (%)	8.61	8.61
Net Profit Margin (%)	5.11	5.11

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Arunaya Organics Ltd?

Arunaya Organics Ltd Return on Asset is 7.97%, which is in line with its 3-year historical median of 7.97%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Arunaya Organics Ltd?

Arunaya Organics Ltd Return on capital employed is 25.35% for FY-2025, which is in line with its 3-year historical median of 25.35%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Arunaya Organics Ltd?

Arunaya Organics Ltd Return on equity is 29.91% for FY-2025, which is in line with its 3-year historical median of 29.91%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Arunaya Organics Ltd?

Arunaya Organics Ltd Cash conversion cycle is 89 days, in line with its 3-year historical median of 89 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover (x)	1.56	1.56
ROE (%)	29.91	29.91
ROCE (%)	25.35	25.35
Cash Conversion Cycle	89 days	89 days

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

Q.9 Debt to Equity ratio of Arunaya Organics Ltd?

Arunaya Organics Ltd Debt-to-Equity ratio is 0.87, which is above the industry average of 0.23, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Arunaya Organics Ltd?

Arunaya Organics Ltd Debt to cash flow from operations is 15.53, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Arunaya Organics Ltd?

Q.1 Promoter shareholding and pledge status of Arunaya Organics Ltd?

Promoters hold 60.79% of the Arunaya Organics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Arunaya Organics Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Arunaya Organics Ltd vs industry peers?

Arunaya Organics Ltd revenue CAGR is 10.33%, compared to the industry median CAGR of 1%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth (%)	32.8	1
Gross Profit Growth (%)	-1.5	2.3
Operating Profit Growth (%)	1.9	0.2
Net Profit Growth (%)	3.4	1.6

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover (x)	1.56	0.87
ROE (%)	29.91	4.97
ROCE (%)	25.35	7.66
Cash Conversion Cycle (days)	88.8	87

Valuation & price assessment

Q.1 Stock return of Arunaya Organics Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -47.99% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-48%

Q.2 Valuation ratios of Arunaya Organics Ltd vs historical?

The current P/E ratio of 7.52 is lower than its historical median of 8.59, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	7.52	8.59	22.20
Price to Book	1.43	1.50	1.50
Price to Sales	0.38	0.44	1.39
EV to EBITDA	6.34	6.89	12.03

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Check Before You Invest : Arunaya Organics Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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