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Check Before You Invest : Black Rose Industries Ltd

BSE: 514183 NSE: BLACKROSE ISIN: INE761G01016
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Black Rose Industries Ltd belong to?
Black Rose Industries Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Black Rose Industries Ltd a good quality company?
Black Rose Industries Ltd is a good quality company, based on a consistently good 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 Black Rose Industries Ltd undervalued or overvalued?
Black Rose Industries 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 5-year
Historic Median
Price to Earnings 22.33 31.95
Price to Book 2.97 5.61
Price to Sales 1.56 2.52
EV to EBITDA 13.91 21.52
Q.4 Is Black Rose Industries Ltd a good buy now?
Black Rose Industries 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 Black Rose Industries Ltd?
Black Rose Industries Ltd revenue growth is 20% for FY-2025, which is above its 5-year CAGR of 5.98%, indicating faster growth.

Q.2 Gross Profit margin of Black Rose Industries Ltd?
Black Rose Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.1% for FY-2025, which is in line with its 5-year median of 11.1%, indicating stable margins.

Q.3 Operating Profit Margin of Black Rose Industries Ltd?
Black Rose Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.74% for FY-2025, which is below its 5-year median of 9.9% indicating decreasing margins.

Q.4 Net Profit Margin of Black Rose Industries Ltd?
Black Rose Industries Ltd Net Profit Margin is 7.88% for FY-2025, is in line with its 5-year median of 7.88%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 11.1 11.1
Operating Profit Margin (%) 8.74 9.9
Net Profit Margin (%) 7.88 7.88

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Black Rose Industries Ltd?
Black Rose Industries Ltd Return on Asset is 13.01%, which is in line with its 5-year historical median of 13.01%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Black Rose Industries Ltd?
Black Rose Industries Ltd Return on capital employed is 23.15% for FY-2025, which is in line with its 5-year historical median of 23.15%. 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 Black Rose Industries Ltd?
Black Rose Industries Ltd Return on equity is 18.26% for FY-2025, which is in line with its 5-year historical median of 18.26%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Black Rose Industries Ltd?
Black Rose Industries Ltd Cash conversion cycle is 92 days, above its 5-year historical median of 86 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 (x) 1.65 1.63
ROE (%) 18.26 18.26
ROCE (%) 23.15 23.15
Cash Conversion Cycle 92 days 86 days

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

Q.9 Debt to Equity ratio of Black Rose Industries Ltd?
Black Rose Industries Ltd Debt-to-Equity ratio is 0.06, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Black Rose Industries Ltd?
Black Rose Industries Ltd Debt to cash flow from operations is -0.74, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Black Rose Industries Ltd?

Q.1 Promoter shareholding and pledge status of Black Rose Industries Ltd?
Promoters hold 75.00% of the Black Rose Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Black Rose Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Black Rose Industries Ltd vs industry peers?
Black Rose Industries Ltd revenue CAGR is 5.98%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 20 -
Gross Profit Growth (%) 23.3 17.7
Operating Profit Growth (%) 3.6 16.1
Net Profit Growth (%) 35 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.65 0.52
ROE (%) 18.26 2.05
ROCE (%) 23.15 3.6
Cash Conversion Cycle (days) 91.5 46

Valuation & price assessment

Q.1 Stock return of Black Rose Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 17.6% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
17.6% -10.4% -10.1% -2.8%
Q.2 Valuation ratios of Black Rose Industries Ltd vs historical?
The current P/E ratio of 22.33 is lower than its historical median of 31.95, 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 22.33 31.95 33.62
Price to Book 2.97 5.61 1.57
Price to Sales 1.56 2.52 2.21
EV to EBITDA 13.91 21.52 14.09

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