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Check Before You Invest : Ashapura Minechem Ltd

BSE: 527001 NSE: ASHAPURMIN ISIN: INE348A01023
  |   Sector:  Metals & Mining   |   Industry:  Mining & Minerals

Snapshot

Q.1 Which industry/sub-sector does Ashapura Minechem Ltd belong to?
Ashapura Minechem Ltd belongs to the Metals & Mining sector, operating specifically within the Mining & Minerals segment.
Q.2 Is Ashapura Minechem Ltd a good quality company?
Ashapura Minechem Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Ashapura Minechem Ltd undervalued or overvalued?
Ashapura Minechem Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Ashapura Minechem Ltd a good buy now?
Ashapura Minechem 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

Q.1 Revenue growth of Ashapura Minechem Ltd?
Ashapura Minechem Ltd revenue growth is 11.5% for FY-2025 , which is below its 5 year CAGR of 12.5% , indicating slower growth.
Q.2 Gross Profit margin of Ashapura Minechem Ltd?
Ashapura Minechem Ltd Gross profit margin which is the profit after deduction of direct costs, is 21.8% for FY-2025 , which is above its 5 year median of 15.8% , indicating increasing margins.
Q.3 Operating Profit Margin of Ashapura Minechem Ltd?
Ashapura Minechem Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.72% for FY-2025 , which is above its 5 year median of 19.07% indicating increasing margins.
Q.4 Net Profit Margin of Ashapura Minechem Ltd?
Ashapura Minechem Ltd Net Profit Margin is 22.76% for FY-2025 , is above with its 5 year median of 13.2%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 21.8 15.8
Operating Profit Margin 19.72 19.07
Net Profit Margin 22.76 13.2
Q.5 Return on Asset of Ashapura Minechem Ltd?
Ashapura Minechem Ltd Return on Asset is 13.75(x), which is above its 5 year historical median of 8.77(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Ashapura Minechem Ltd?
Ashapura Minechem Ltd Return on equity is 33.63% for FY-2025 , which is in line with its historical median of 33.63%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Ashapura Minechem Ltd?
Ashapura Minechem Ltd Return on capital employed is 24.93% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Ashapura Minechem Ltd?
Ashapura Minechem Ltd Cash conversion cycle is 191 , above its historical median of 155 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.6 0.6
ROE 33.63 33.63
ROCE 24.93 24.93
Cash Conversion Cycle 191 155
Q.9 Debt to Equity ratio of Ashapura Minechem Ltd?
Ashapura Minechem Ltd Debt-to-Equity ratio is 0.25 , which is above with the industry average of 0.22 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Ashapura Minechem Ltd?
Ashapura Minechem Ltd Debt to cash flow from operations is -1.67 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Ashapura Minechem Ltd?
Promoters hold 47.88% of the Ashapura Minechem Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Ashapura Minechem Ltd vs industry peers?
Ashapura Minechem Ltd revenue CAGR is 12.53% , compared to the industry median CAGR of 1.53% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 371.5 218.1
Gross Profit 81.1 30.9
Operating Profit 73 36.2
Net Profit 85 18.3
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.6 0.46
ROE 33.63 9.72
ROCE 24.93 11.48
Cash Conversion Cycle 190.51 121

Valuation & price assessment

Q.1 Stock return of Ashapura Minechem Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 20.7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 20.7% 34.1% 57.7% 47.3%
Q.3 Valuation ratios of Ashapura Minechem Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 37.81 1.38 15.25
Price to Book 12.15 0.00 1.98
Price to Sales 11.58 3.50 5.50
EV to EBITDA 37.96 0.00 7.70

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