SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Continental Chemicals Ltd

BSE: 506935 NSE: ISIN: INE423K01015
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does Continental Chemicals Ltd belong to?
Continental Chemicals Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is Continental Chemicals Ltd a good quality company?
Continental Chemicals Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Continental Chemicals Ltd undervalued or overvalued?
Continental Chemicals Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Continental Chemicals Ltd a good buy now?
Continental Chemicals 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 Continental Chemicals Ltd?
Continental Chemicals Ltd revenue growth is -47.6% for FY-2025 , which is below its 5 year CAGR of -6.6% , indicating slower growth.
Q.2 Gross Profit margin of Continental Chemicals Ltd?
Continental Chemicals Ltd Gross profit margin which is the profit after deduction of direct costs, is 249.2% for FY-2025 , which is above its 5 year median of 130.1% , indicating increasing margins.
Q.3 Operating Profit Margin of Continental Chemicals Ltd?
Continental Chemicals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -340.49% for FY-2025 , which is below its 5 year median of -103.37% indicating decreasing margins.
Q.4 Net Profit Margin of Continental Chemicals Ltd?
Continental Chemicals Ltd Net Profit Margin is 195.96% for FY-2025 , is above with its 5 year median of 73.8%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 249.2 130.1
Operating Profit Margin -340.49 -103.37
Net Profit Margin 195.96 73.8
Q.5 Return on Asset of Continental Chemicals Ltd?
Continental Chemicals Ltd Return on Asset is 7.52%, which is above its 5 year historical median of 5.01%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Continental Chemicals Ltd?
Continental Chemicals Ltd Return on equity is 9.06% for FY-2025 , which is above its historical median of 6.33%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Continental Chemicals Ltd?
Continental Chemicals Ltd Return on capital employed is 10.74% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Continental Chemicals Ltd?
Continental Chemicals Ltd Cash conversion cycle is 1 days, above its historical median of -4 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.04 0.08
ROE 9.06 6.33
ROCE 10.74 7.53
Cash Conversion Cycle 1 days -4 days
Q.9 Debt to Equity ratio of Continental Chemicals Ltd?
Continental Chemicals Ltd Debt-to-Equity ratio is 0.01 , which is in line with the industry average of 0.01 , indicating similar to debt levels in the industry.
Q.10 Debt to cash flow from operations of Continental Chemicals Ltd?
Continental Chemicals Ltd Debt to cash flow from operations is -0.31 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Continental Chemicals Ltd?
Promoters hold 61.57% of the Continental Chemicals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Continental Chemicals Ltd vs industry peers?
Continental Chemicals Ltd revenue CAGR is -6.63% , compared to the industry median CAGR of 2.87% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 0.2 23.3
Gross Profit 0.6 1.8
Operating Profit -0.8 1
Net Profit 0.4 0.8
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.04 0.44
ROE 9.06 3.97
ROCE 10.74 6.41
Cash Conversion Cycle (days) 0.66 36

Valuation & price assessment

Q.1 Stock return of Continental Chemicals Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 31.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 31.2% 35.5% -5.3% -15.9%
Q.3 Valuation ratios of Continental Chemicals Ltd vs historical?
The current P/E is lower 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 23.12 78.58 22.96
Price to Book 2.51 3.96 2.61
Price to Sales 57.55 37.05 4.40
EV to EBITDA 13.57 38.54 17.20

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×