Check Before You Invest : Belding India Ltd

Q: Which industry/sub-sector does Belding India Ltd belong to?

Belding India Ltd belongs to the FMCG sector, operating specifically within the Packaging segment.

Q: Is Belding India Ltd a good quality company?

Belding India Ltd is a average quality company, based on a somewhat consistent 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 Belding India Ltd undervalued or overvalued?

Belding India 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. Price to Earnings, Current: 1180.62, Historic Median: 56.05. Price to Book, Current: 1.95, Historic Median: 2.66. Price to Sales, Current: 216.14, Historic Median: 0.70. EV to EBITDA, Current: -2386.88, Historic Median: 13.79

Q: Is Belding India Ltd a good buy now?

Belding 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

Q: Revenue growth of Belding India Ltd?

Belding India Ltd revenue growth is -18.1% for FY-2025, which is below its 5-year CAGR of -7.59%, indicating slower growth.

Q: Gross Profit margin of Belding India Ltd?

Belding India Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.2% for FY-2025, which is in line with its 5-year median of 2.2%, indicating stable margins.

Q: Operating Profit Margin of Belding India Ltd?

Belding India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.2% for FY-2025, which is below its 5-year median of 2.89% indicating decreasing margins.

Q: Net Profit Margin of Belding India Ltd?

Belding India Ltd Net Profit Margin is 1.14% for FY-2025, is in line with its 5-year median of 1.14%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 2.2, Historic Median: 2.2. Operating Profit Margin (%), Current: 2.2, Historic Median: 2.89. Net Profit Margin (%), Current: 1.14, Historic Median: 1.14

Q: Return on Asset of Belding India Ltd?

Belding India Ltd Return on Asset is 3.26%, which is in line with its 5-year historical median of 3.26%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Belding India Ltd?

Belding India Ltd Return on capital employed is 6.63% for FY-2025, which is below its 5-year historical median of 11.51%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Snapshot

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

Belding India Ltd belongs to the FMCG sector, operating specifically within the Packaging segment.

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

Belding India Ltd is a average quality company, based on a somewhat consistent 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 Belding India Ltd undervalued or overvalued?

Belding India 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	1180.62	56.05
Price to Book	1.95	2.66
Price to Sales	216.14	0.70
EV to EBITDA	-2386.88	13.79

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

Belding 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

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 Belding India Ltd?

Belding India Ltd revenue growth is -18.1% for FY-2025, which is below its 5-year CAGR of -7.59%, indicating slower growth.

Q.2 Gross Profit margin of Belding India Ltd?

Belding India Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.2% for FY-2025, which is in line with its 5-year median of 2.2%, indicating stable margins.

Q.3 Operating Profit Margin of Belding India Ltd?

Belding India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.2% for FY-2025, which is below its 5-year median of 2.89% indicating decreasing margins.

Q.4 Net Profit Margin of Belding India Ltd?

Belding India Ltd Net Profit Margin is 1.14% for FY-2025, is in line with its 5-year median of 1.14%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	2.2	2.2
Operating Profit Margin (%)	2.2	2.89
Net Profit Margin (%)	1.14	1.14

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Belding India Ltd?

Belding India Ltd Return on Asset is 3.26%, which is in line with its 5-year historical median of 3.26%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Belding India Ltd?

Belding India Ltd Return on capital employed is 6.63% for FY-2025, which is below its 5-year historical median of 11.51%. 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 Belding India Ltd?

Belding India Ltd Return on equity is 3.93% for FY-2025, which is in line with its 5-year historical median of 3.93%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Belding India Ltd?

Belding India Ltd Cash conversion cycle is 97 days, below its 5-year historical median of 104 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)	2.86	2.53
ROE (%)	3.93	3.93
ROCE (%)	6.63	11.51
Cash Conversion Cycle	97 days	104 days

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

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

Belding India Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.46, indicating lower debt levels in the industry.

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

Belding India Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Belding India Ltd?

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

Promoters hold 55.78% of the Belding India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Belding India Ltd performance compare with that of its Peers?

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

Belding India Ltd revenue CAGR is -7.59%, compared to the industry median CAGR of 2.49%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-18.1	2.5
Gross Profit Growth (%)	0	7.2
Operating Profit Growth (%)	-100	8.9
Net Profit Growth (%)	0	8.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	2.86	1.36
ROE (%)	3.93	12.7
ROCE (%)	6.63	12
Cash Conversion Cycle (days)	97.44	65

Valuation & price assessment

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

Over the last 9 year(s), the stock has delivered a CAGR of 43% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	43%	96%	58.2%	285.5%

Q.2 Valuation ratios of Belding India Ltd vs historical?

The current P/E ratio of 1180.62 is higher than its historical median of 56.05, indicating that the stock is trading above 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	1180.62	56.05	21.99
Price to Book	1.95	2.66	2.21
Price to Sales	216.14	0.70	1.17
EV to EBITDA	-2386.88	13.79	11.40

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