Check Before You Invest : EP Biocomposites Ltd

Q: Which industry/sub-sector does EP Biocomposites Ltd belong to?

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

Q: Is EP Biocomposites Ltd a good quality company?

EP Biocomposites 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: Is EP Biocomposites Ltd undervalued or overvalued?

EP Biocomposites 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. Price to Earnings, Current: 15.33, Historic Median: 25.02. Price to Book, Current: 1.49, Historic Median: 3.01. Price to Sales, Current: 1.32, Historic Median: 2.51. EV to EBITDA, Current: 9.09, Historic Median: 16.37

Q: Is EP Biocomposites Ltd a good buy now?

EP Biocomposites 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 EP Biocomposites Ltd?

EP Biocomposites Ltd revenue growth is 5% for FY-2025, which is below its 5-year CAGR of 83.96%, indicating slower growth.

Q: Gross Profit margin of EP Biocomposites Ltd?

EP Biocomposites Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.7% for FY-2025, which is below its 5-year median of 14.6%, indicating decreasing margins.

Q: Operating Profit Margin of EP Biocomposites Ltd?

EP Biocomposites Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.82% for FY-2025, which is in line with its 5-year median of 14.82% indicating stable margins.

Q: Net Profit Margin of EP Biocomposites Ltd?

EP Biocomposites Ltd Net Profit Margin is 8.59% for FY-2025, is below its 5-year median of 10.04%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 12.7, Historic Median: 14.6. Operating Profit Margin (%), Current: 14.82, Historic Median: 14.82. Net Profit Margin (%), Current: 8.59, Historic Median: 10.04

Q: Return on Asset of EP Biocomposites Ltd?

EP Biocomposites Ltd Return on Asset is 6.51%, which is below its 5-year historical median of 8.58%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of EP Biocomposites Ltd?

EP Biocomposites Ltd Return on capital employed is 14.24% for FY-2025, which is below its 5-year historical median of 15.28%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : EP Biocomposites Ltd

Snapshot

Q.1 Which industry/sub-sector does EP Biocomposites Ltd belong to?

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

Q.2 Is EP Biocomposites Ltd a good quality company?

EP Biocomposites 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 EP Biocomposites Ltd undervalued or overvalued?

EP Biocomposites 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	5-year Historic Median
Price to Earnings	15.33	25.02
Price to Book	1.49	3.01
Price to Sales	1.32	2.51
EV to EBITDA	9.09	16.37

Q.4 Is EP Biocomposites Ltd a good buy now?

EP Biocomposites 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 EP Biocomposites Ltd?

EP Biocomposites Ltd revenue growth is 5% for FY-2025, which is below its 5-year CAGR of 83.96%, indicating slower growth.

Q.2 Gross Profit margin of EP Biocomposites Ltd?

EP Biocomposites Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.7% for FY-2025, which is below its 5-year median of 14.6%, indicating decreasing margins.

Q.3 Operating Profit Margin of EP Biocomposites Ltd?

EP Biocomposites Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.82% for FY-2025, which is in line with its 5-year median of 14.82% indicating stable margins.

Q.4 Net Profit Margin of EP Biocomposites Ltd?

EP Biocomposites Ltd Net Profit Margin is 8.59% for FY-2025, is below its 5-year median of 10.04%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	12.7	14.6
Operating Profit Margin (%)	14.82	14.82
Net Profit Margin (%)	8.59	10.04

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of EP Biocomposites Ltd?

EP Biocomposites Ltd Return on Asset is 6.51%, which is below its 5-year historical median of 8.58%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of EP Biocomposites Ltd?

EP Biocomposites Ltd Return on capital employed is 14.24% for FY-2025, which is below its 5-year historical median of 15.28%. 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 EP Biocomposites Ltd?

EP Biocomposites Ltd Return on equity is 10.23% for FY-2025, which is below its 5-year historical median of 12.79%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of EP Biocomposites Ltd?

EP Biocomposites Ltd Cash conversion cycle is 247 days, above its 5-year historical median of 190 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)	0.76	0.85
ROE (%)	10.23	12.79
ROCE (%)	14.24	15.28
Cash Conversion Cycle	247 days	190 days

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

Q.9 Debt to Equity ratio of EP Biocomposites Ltd?

EP Biocomposites Ltd Debt-to-Equity ratio is 0.28, which is above the industry average of 0.25, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of EP Biocomposites Ltd?

EP Biocomposites Ltd Debt to cash flow from operations is -6.08, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of EP Biocomposites Ltd?

Q.1 Promoter shareholding and pledge status of EP Biocomposites Ltd?

Promoters hold 70.08% of the EP Biocomposites Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does EP Biocomposites Ltd performance compare with that of its Peers?

Q.1 Revenue growth of EP Biocomposites Ltd vs industry peers?

EP Biocomposites Ltd revenue CAGR is 83.96%, compared to the industry median CAGR of 4.71%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	5	4.7
Gross Profit Growth (%)	-8.4	14.3
Operating Profit Growth (%)	26.2	10.1
Net Profit Growth (%)	-10.4	18.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.76	1.06
ROE (%)	10.23	5.91
ROCE (%)	14.24	8.75
Cash Conversion Cycle (days)	246.8	77

Valuation & price assessment

Q.1 Stock return of EP Biocomposites Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of -21.7% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-21.7%	-21.2%

Q.2 Valuation ratios of EP Biocomposites Ltd vs historical?

The current P/E ratio of 15.33 is lower than its historical median of 25.02, 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	15.33	25.02	22.05
Price to Book	1.49	3.01	1.89
Price to Sales	1.32	2.51	1.33
EV to EBITDA	9.09	16.37	10.86

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Check Before You Invest : EP Biocomposites Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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