Check Before You Invest : Bright Brothers Ltd

Snapshot

Q.1 Which industry/sub-sector does Bright Brothers Ltd belong to?

Bright Brothers Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.

Q.2 Is Bright Brothers Ltd a good quality company?

Bright Brothers Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Bright Brothers Ltd undervalued or overvalued?

Bright Brothers Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Bright Brothers Ltd a good buy now?

Bright Brothers 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

Q.1 Revenue growth of Bright Brothers Ltd?

Bright Brothers Ltd revenue growth is 34.3% for FY-2025, which is above its 5-year CAGR of 8.55%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Bright Brothers Ltd?

Bright Brothers Ltd Return on capital employed is 19.34% for FY-2025, which is in line with its 5-year historical median of 19.34%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Bright Brothers Ltd?

Bright Brothers Ltd Return on Asset is 4.05%, which is in line with its 5-year historical median of 3.94%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Bright Brothers Ltd?

Bright Brothers Ltd Return on equity is 11.71% for FY-2025, which is in line with its 5-year historical median of 11.71%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Bright Brothers Ltd?

Bright Brothers Ltd Cash conversion cycle is 56 days, below its 5-year historical median of 81 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	1.54	1.32
ROE	11.71	11.71
ROCE	19.34	19.34
Cash Conversion Cycle	56 days	81 days

Q.6 Gross Profit margin of Bright Brothers Ltd?

Bright Brothers Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.5% for FY-2025, which is above its 5-year median of 4.2%, indicating increasing margins.

Q.7 Operating Profit Margin of Bright Brothers Ltd?

Bright Brothers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.61% for FY-2025, which is above its 5-year median of 5.67% indicating increasing margins.

Q.8 Net Profit Margin of Bright Brothers Ltd?

Bright Brothers Ltd Net Profit Margin is 2.63% for FY-2025, is in line with with its 5-year median of 2.63%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	6.5	4.2
Operating Profit Margin	8.61	5.67
Net Profit Margin	2.63	2.63

Q.9 Debt to Equity ratio of Bright Brothers Ltd?

Bright Brothers Ltd Debt-to-Equity ratio is 0.42, which is above with the industry average of 0.33, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Bright Brothers Ltd?

Bright Brothers Ltd Debt to cash flow from operations is 3.68, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Bright Brothers Ltd?

Promoters hold 54.54% of the Bright Brothers Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Bright Brothers Ltd vs industry peers?

Bright Brothers Ltd revenue CAGR is 8.55%, compared to the industry median CAGR of 7%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	34.3	7
Gross Profit Growth	250	NAN
Operating Profit Growth	154.6	11
Net Profit Growth	0	17.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.54	1.14
ROE	11.71	7.53
ROCE	19.34	8.9
Cash Conversion Cycle (days)	55.95	86

Valuation & price assessment

Q.1 Stock return of Bright Brothers Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 17.7% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	17.7%	24%	16.9%	-11%

Q.3 Valuation ratios of Bright Brothers Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 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	20.57	17.80	21.91
Price to Book	1.81	1.33	1.89
Price to Sales	0.43	0.41	1.33
EV to EBITDA	6.2	7.62	11.02

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