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Check Before You Invest : Hemo Organic Ltd

BSE: 524590 NSE: ISIN: INE422G01015
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Hemo Organic Ltd belong to?
Hemo Organic Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Hemo Organic Ltd a good quality company?
Hemo Organic 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 Hemo Organic Ltd undervalued or overvalued?
Hemo Organic 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 62.32 -
Price to Book -15.05 -9.51
Price to Sales 2.63 343.12
EV to EBITDA 228.47 -39.14
Q.4 Is Hemo Organic Ltd a good buy now?
Hemo Organic 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 Hemo Organic Ltd?
Hemo Organic Ltd revenue growth is 11,950% for FY-2025, which is below its 5-year CAGR of 53.81%, indicating slower growth.

Q.2 Gross Profit margin of Hemo Organic Ltd?
Hemo Organic Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.1% for FY-2025, which is above its 5-year median of -913.2%, indicating increasing margins.

Q.3 Operating Profit Margin of Hemo Organic Ltd?
Hemo Organic Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -1.73% for FY-2025, which is above its 5-year median of -910.67% indicating increasing margins.

Q.4 Net Profit Margin of Hemo Organic Ltd?
Hemo Organic Ltd Net Profit Margin is 6.79% for FY-2025, is above its 5-year median of -913.15%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 1.1 -913.2
Operating Profit Margin (%) -1.73 -910.67
Net Profit Margin (%) 6.79 -913.15

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Hemo Organic Ltd?
Hemo Organic Ltd Return on Asset is 5.83%, which is above its 5-year historical median of -46.85%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Hemo Organic Ltd?
Hemo Organic Ltd Return on capital employed is 2.51% for FY-2025, which is above its 5-year historical median of -53.8%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Hemo Organic Ltd?
Hemo Organic Ltd Return on equity is 0% for FY-2025, which is above its 5-year historical median of -53.35%, indicating the business is making better use of its shareholders capital.

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

Q.8 Debt to Equity ratio of Hemo Organic Ltd?
Hemo Organic Ltd Debt-to-Equity ratio is -9.77, which is lower the industry average of 0.03, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of Hemo Organic Ltd?
Hemo Organic Ltd Debt to cash flow from operations is -4.09, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Hemo Organic Ltd?

Q.1 Promoter shareholding and pledge status of Hemo Organic Ltd?
Promoters hold 16.85% of the Hemo Organic Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Hemo Organic Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Hemo Organic Ltd vs industry peers?
Hemo Organic Ltd revenue CAGR is 53.81%, 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 (%) 11 -
Gross Profit Growth (%) 0 17.7
Operating Profit Growth (%) 0 16.1
Net Profit Growth (%) 0 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.86 0.52
ROE (%) - 2.05
ROCE (%) 2.51 3.6
Cash Conversion Cycle (days) 116.42 46

Valuation & price assessment

Q.1 Stock return of Hemo Organic Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 1.6% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
1.6% 11.1% 27.5% 64.5%
Q.2 Valuation ratios of Hemo Organic Ltd vs historical?
The current P/E ratio of 62.32 is higher than its historical median of , indicating that the stock is trading above 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 62.32 - 33.62
Price to Book -15.05 -9.51 1.57
Price to Sales 2.63 343.12 2.21
EV to EBITDA 228.47 -39.14 14.09

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