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Check Before You Invest : IIRM Holdings India Ltd

BSE: 526530 NSE: ISIN: INE670C01026
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Plastic Products

Snapshot

Q.1 Which industry/sub-sector does IIRM Holdings India Ltd belong to?
IIRM Holdings India Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.
Q.2 Is IIRM Holdings India Ltd a good quality company?
IIRM Holdings India Ltd is a weak quality company, based on a inconsistent 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 IIRM Holdings India Ltd undervalued or overvalued?
IIRM Holdings India Ltd appears Fair, as its key valuation ratios are in line with 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 681.59 221.27
Price to Book 7.06 6.84
Price to Sales 116.92 22.87
EV to EBITDA 362.92 180.22
Q.4 Is IIRM Holdings India Ltd a good buy now?
IIRM Holdings India 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 IIRM Holdings India Ltd?
IIRM Holdings India Ltd revenue growth is 114.7% for FY-2025, which is above its 5-year CAGR of NA%, indicating faster growth.

Q.2 Gross Profit margin of IIRM Holdings India Ltd?
IIRM Holdings India Ltd Gross profit margin which is the profit after deduction of direct costs, is 49.9% for FY-2025, which is above its 5-year median of 19.9%, indicating increasing margins.

Q.3 Operating Profit Margin of IIRM Holdings India Ltd?
IIRM Holdings India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 50.1% for FY-2025, which is above its 5-year median of 19.94% indicating increasing margins.

Q.4 Net Profit Margin of IIRM Holdings India Ltd?
IIRM Holdings India Ltd Net Profit Margin is 20.85% for FY-2025, is above its 5-year median of 16.08%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 49.9 19.9
Operating Profit Margin (%) 50.1 19.94
Net Profit Margin (%) 20.85 16.08

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of IIRM Holdings India Ltd?
IIRM Holdings India Ltd Return on Asset is 2.32%, which is in line with its 5-year historical median of 2.32%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of IIRM Holdings India Ltd?
IIRM Holdings India Ltd Return on capital employed is 5.65% for FY-2025, which is above its 5-year historical median of -11.47%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

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

Q.7 Debt to Equity ratio of IIRM Holdings India Ltd?
IIRM Holdings India Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.25, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of IIRM Holdings India Ltd?
IIRM Holdings India Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of IIRM Holdings India Ltd?

Q.1 Promoter shareholding and pledge status of IIRM Holdings India Ltd?
Promoters hold 57.89% of the IIRM Holdings India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does IIRM Holdings India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of IIRM Holdings India Ltd vs industry peers?
IIRM Holdings India Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 4.71%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 114.7 4.7
Gross Profit Growth (%) 100 14.3
Operating Profit Growth (%) 100 10.1
Net Profit Growth (%) - 18.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.11 1.06
ROE (%) - 5.91
ROCE (%) 5.65 8.75
Cash Conversion Cycle (days) 66.08 77

Valuation & price assessment

Q.1 Stock return of IIRM Holdings India Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 25% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
25% 56.2% 93.7% 15.4%
Q.2 Valuation ratios of IIRM Holdings India Ltd vs historical?
The current P/E ratio of 681.59 is higher than its historical median of 221.27, 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 681.59 221.27 22.05
Price to Book 7.06 6.84 1.89
Price to Sales 116.92 22.87 1.33
EV to EBITDA 362.92 180.22 10.86

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