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INVESTMENT INSIGHTS

Check Before You Invest : Indo Gulf Industries Ltd

BSE: 506945 NSE: ISIN: INE684U01011
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Chemicals

Snapshot

Q.1 Which industry/sub-sector does Indo Gulf Industries Ltd belong to?
Indo Gulf Industries Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.
Q.2 Is Indo Gulf Industries Ltd a good quality company?
Indo Gulf Industries 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 Indo Gulf Industries Ltd undervalued or overvalued?
Indo Gulf Industries Ltd appears Overvalued, as its key valuation ratios are higher 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 - 0.19
Price to Book 0.27 0.03
Price to Sales 0.01 0.01
EV to EBITDA 6.97 1.63
Q.4 Is Indo Gulf Industries Ltd a good buy now?
Indo Gulf Industries 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 Indo Gulf Industries Ltd?
Indo Gulf Industries Ltd revenue growth is 37.8% for FY-2025, which is above its 5-year CAGR of 35.67%, indicating faster growth.

Q.2 Gross Profit margin of Indo Gulf Industries Ltd?
Indo Gulf Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.7% for FY-2025, which is above its 5-year median of 2.1%, indicating increasing margins.

Q.3 Operating Profit Margin of Indo Gulf Industries Ltd?
Indo Gulf Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.73% for FY-2025, which is above its 5-year median of 2.21% indicating increasing margins.

Q.4 Net Profit Margin of Indo Gulf Industries Ltd?
Indo Gulf Industries Ltd Net Profit Margin is 2.65% for FY-2025, is above its 5-year median of 1.11%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 4.7 2.1
Operating Profit Margin (%) 4.73 2.21
Net Profit Margin (%) 2.65 1.11

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Indo Gulf Industries Ltd?
Indo Gulf Industries Ltd Return on Asset is 12.54%, which is above its 5-year historical median of 6.83%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Indo Gulf Industries Ltd?
Indo Gulf Industries Ltd Return on capital employed is 45.2% for FY-2025, which is above its 5-year historical median of 18.83%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Cash conversion cycle of Indo Gulf Industries Ltd?
Indo Gulf Industries Ltd Cash conversion cycle is -17 days, below its 5-year historical median of -4 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

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

Q.8 Debt to Equity ratio of Indo Gulf Industries Ltd?
Indo Gulf Industries Ltd Debt-to-Equity ratio is 1.03, which is above the industry average of 0.13, indicating higher debt levels in the industry.

Q.9 Debt to cash flow from operations of Indo Gulf Industries Ltd?
Indo Gulf Industries Ltd Debt to cash flow from operations is 0.67, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Indo Gulf Industries Ltd?

Q.1 Promoter shareholding and pledge status of Indo Gulf Industries Ltd?
Promoters hold 53.96% of the Indo Gulf Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Indo Gulf Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Indo Gulf Industries Ltd vs industry peers?
Indo Gulf Industries Ltd revenue CAGR is 35.67%, compared to the industry median CAGR of 7.53%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 37.8 7.5
Gross Profit Growth (%) 205.3 12.1
Operating Profit Growth (%) 195 11.7
Net Profit Growth (%) 341.9 9.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 4.74 0.93
ROE (%) - 10.17
ROCE (%) 45.2 12.96
Cash Conversion Cycle (days) -17.19 62

Valuation & price assessment

Q.1 Stock return of Indo Gulf Industries Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR		 - - - -
Q.2 Valuation ratios of Indo Gulf Industries Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 0.19, 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 - 0.19 28.17
Price to Book 0.27 0.03 2.22
Price to Sales 0.01 0.01 1.93
EV to EBITDA 6.97 1.63 14.20

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