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Check Before You Invest : Dhanlaxmi Crop Science Ltd

BSE: 0 NSE: DHANLAXMI ISIN: INE0V9V01010
  |   Sector:  Agriculture & Allied activities   |   Industry:  Agriculture

Snapshot

Q.1 Which industry/sub-sector does Dhanlaxmi Crop Science Ltd belong to?
Dhanlaxmi Crop Science Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Agriculture segment.
Q.2 Is Dhanlaxmi Crop Science Ltd a good quality company?
Dhanlaxmi Crop Science 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 Dhanlaxmi Crop Science Ltd undervalued or overvalued?
Dhanlaxmi Crop Science Ltd appears Somewhat 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 3-year
Historic Median
Price to Earnings 6 8.28
Price to Book 1.13 1.57
Price to Sales 0.4 0.56
EV to EBITDA 3.59 5.68
Q.4 Is Dhanlaxmi Crop Science Ltd a good buy now?
Dhanlaxmi Crop Science 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 Dhanlaxmi Crop Science Ltd?
Dhanlaxmi Crop Science Ltd revenue growth is 103% for FY-2025, which is above its 3-year CAGR of 53.96%, indicating faster growth.

Q.2 Gross Profit margin of Dhanlaxmi Crop Science Ltd?
Dhanlaxmi Crop Science Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.3% for FY-2025, which is in line with its 3-year median of 9.3%, indicating stable margins.

Q.3 Operating Profit Margin of Dhanlaxmi Crop Science Ltd?
Dhanlaxmi Crop Science Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.54% for FY-2025, which is in line with its 3-year median of 9.64% indicating stable margins.

Q.4 Net Profit Margin of Dhanlaxmi Crop Science Ltd?
Dhanlaxmi Crop Science Ltd Net Profit Margin is 6.71% for FY-2025, is in line with its 3-year median of 6.71%, indicating stable margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 9.3 9.3
Operating Profit Margin (%) 9.54 9.64
Net Profit Margin (%) 6.71 6.71

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Dhanlaxmi Crop Science Ltd?
Dhanlaxmi Crop Science Ltd Return on Asset is 14.73%, which is in line with its 3-year historical median of 14.73%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Dhanlaxmi Crop Science Ltd?
Dhanlaxmi Crop Science Ltd Return on capital employed is 35.34% for FY-2025, which is in line with its 3-year historical median of 35.34%. 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 Dhanlaxmi Crop Science Ltd?
Dhanlaxmi Crop Science Ltd Return on equity is 27.98% for FY-2025, which is below its 3-year historical median of 34.02%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Dhanlaxmi Crop Science Ltd?
Dhanlaxmi Crop Science Ltd Cash conversion cycle is 78 days, below its 3-year historical median of 87 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 2.19 2.28
ROE (%) 27.98 34.02
ROCE (%) 35.34 35.34
Cash Conversion Cycle 78 days 87 days

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

Q.9 Debt to Equity ratio of Dhanlaxmi Crop Science Ltd?
Dhanlaxmi Crop Science Ltd Debt-to-Equity ratio is 0.16, which is above the industry average of 0.13, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Dhanlaxmi Crop Science Ltd?
Dhanlaxmi Crop Science Ltd Debt to cash flow from operations is -0.58, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Dhanlaxmi Crop Science Ltd?

Q.1 Promoter shareholding and pledge status of Dhanlaxmi Crop Science Ltd?
Promoters hold 73.97% of the Dhanlaxmi Crop Science Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Dhanlaxmi Crop Science Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Dhanlaxmi Crop Science Ltd vs industry peers?
Dhanlaxmi Crop Science Ltd revenue CAGR is 53.96%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 103 0
Gross Profit Growth (%) 79.5 24.9
Operating Profit Growth (%) 79.2 33.1
Net Profit Growth (%) 85.5 24.3
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 2.19 0.92
ROE (%) 27.98 8.8
ROCE (%) 35.34 9.82
Cash Conversion Cycle (days) 77.75 81

Valuation & price assessment

Q.1 Stock return of Dhanlaxmi Crop Science Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -43.04% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -43%
Q.2 Valuation ratios of Dhanlaxmi Crop Science Ltd vs historical?
The current P/E ratio of 6 is lower than its historical median of 8.28, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 6 8.28 19.04
Price to Book 1.13 1.57 1.83
Price to Sales 0.4 0.56 1.70
EV to EBITDA 3.59 5.68 13.20

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