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Check Before You Invest : Banka Bioloo Ltd

BSE: 0 NSE: BANKA ISIN: INE862Y01015
  |   Sector:  Miscellaneous   |   Industry:  Environmental Services

Snapshot

Q.1 Which industry/sub-sector does Banka Bioloo Ltd belong to?
Banka Bioloo Ltd belongs to the Miscellaneous sector, operating specifically within the Environmental Services segment.
Q.2 Is Banka Bioloo Ltd a good quality company?
Banka Bioloo 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 Banka Bioloo Ltd undervalued or overvalued?
Banka Bioloo Ltd appears Overvalued, as its key valuation ratios are higher 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 - 26.66
Price to Book 2.9 2.30
Price to Sales 1.65 1.94
EV to EBITDA 120.83 18.61
Q.4 Is Banka Bioloo Ltd a good buy now?
Banka Bioloo 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 Banka Bioloo Ltd?
Banka Bioloo Ltd revenue growth is 10.1% for FY-2025, which is above its 5-year CAGR of 2.82%, indicating faster growth.

Q.2 Gross Profit margin of Banka Bioloo Ltd?
Banka Bioloo Ltd Gross profit margin which is the profit after deduction of direct costs, is -0.6% for FY-2025, which is below its 5-year median of 6.9%, indicating decreasing margins.

Q.3 Operating Profit Margin of Banka Bioloo Ltd?
Banka Bioloo Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.55% for FY-2025, which is below its 5-year median of 11.33% indicating decreasing margins.

Q.4 Net Profit Margin of Banka Bioloo Ltd?
Banka Bioloo Ltd Net Profit Margin is -16.9% for FY-2025, is below its 5-year median of 7.24%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -0.6 6.9
Operating Profit Margin (%) 3.55 11.33
Net Profit Margin (%) -16.9 7.24

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Banka Bioloo Ltd?
Banka Bioloo Ltd Return on Asset is -13.09%, which is below its 5-year historical median of 4.74%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Banka Bioloo Ltd?
Banka Bioloo Ltd Return on capital employed is -11.38% for FY-2025, which is below its 5-year historical median of 8.56%. 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 Banka Bioloo Ltd?
Banka Bioloo Ltd Return on equity is -25.39% for FY-2025, which is below its 5-year historical median of 7.6%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Banka Bioloo Ltd?
Banka Bioloo Ltd Cash conversion cycle is 135 days, below its 5-year historical median of 163 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 0.84
ROE (%) -25.39 7.6
ROCE (%) -11.38 8.56
Cash Conversion Cycle 135 days 163 days

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

Q.9 Debt to Equity ratio of Banka Bioloo Ltd?
Banka Bioloo Ltd Debt-to-Equity ratio is 0.76, which is above the industry average of 0.26, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Banka Bioloo Ltd?
Banka Bioloo Ltd Debt to cash flow from operations is 34.55, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Banka Bioloo Ltd?

Q.1 Promoter shareholding and pledge status of Banka Bioloo Ltd?
Promoters hold 52.07% of the Banka Bioloo Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Banka Bioloo Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Banka Bioloo Ltd vs industry peers?
Banka Bioloo Ltd revenue CAGR is 2.82%, compared to the industry median CAGR of 4.01%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 10.1 4
Gross Profit Growth (%) -117.8 27
Operating Profit Growth (%) -43 13.1
Net Profit Growth (%) -2,918.2 28.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.91 0.84
ROE (%) -25.39 13.91
ROCE (%) -11.38 13.74
Cash Conversion Cycle (days) 135.02 71

Valuation & price assessment

Q.1 Stock return of Banka Bioloo Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 5.74% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 5.7% 4.4% 26.2%
Q.2 Valuation ratios of Banka Bioloo Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 26.66, 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 - 26.66 31.72
Price to Book 2.9 2.30 4.85
Price to Sales 1.65 1.94 2.84
EV to EBITDA 120.83 18.61 17.87

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