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Check Before You Invest : INDO-MIM Ltd

BSE: 544837 NSE: INDOMIM ISIN: INE084101034
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does INDO-MIM Ltd belong to?
INDO-MIM Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is INDO-MIM Ltd a good quality company?
INDO-MIM Ltd is a good quality company, based on a consistently good 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-MIM Ltd undervalued or overvalued?
INDO-MIM 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 94.85 -
Price to Book 16.71 -
Price to Sales 13.69 -
EV to EBITDA 43.81 -
Q.4 Is INDO-MIM Ltd a good buy now?
INDO-MIM 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-MIM Ltd?
INDO-MIM Ltd revenue growth is 15.9% for FY-2025, which is above its 5-year CAGR of 14.67%, indicating faster growth.

Q.2 Gross Profit margin of INDO-MIM Ltd?
INDO-MIM Ltd Gross profit margin which is the profit after deduction of direct costs, is 29% for FY-2025, which is in line with its 5-year median of 29.5%, indicating stable margins.

Q.3 Operating Profit Margin of INDO-MIM Ltd?
INDO-MIM Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 30.73% for FY-2025, which is in line with its 5-year median of 30.85% indicating stable margins.

Q.4 Net Profit Margin of INDO-MIM Ltd?
INDO-MIM Ltd Net Profit Margin is 14.43% for FY-2025, is below its 5-year median of 17.94%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 29 29.5
Operating Profit Margin (%) 30.73 30.85
Net Profit Margin (%) 14.43 17.94

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of INDO-MIM Ltd?
INDO-MIM Ltd Return on Asset is 12.09%, which is below its 5-year historical median of 16.01%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of INDO-MIM Ltd?
INDO-MIM Ltd Return on capital employed is 21.84% for FY-2025, which is below its 5-year historical median of 27%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of INDO-MIM Ltd?
INDO-MIM Ltd Return on equity is 23.2% for FY-2025, which is below its 5-year historical median of 27.39%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of INDO-MIM Ltd?
INDO-MIM Ltd Cash conversion cycle is 113 days, above its 5-year historical median of 84 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) 0.84 0.89
ROE (%) 23.2 27.39
ROCE (%) 21.84 27
Cash Conversion Cycle 113 days 84 days

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

Q.9 Debt to Equity ratio of INDO-MIM Ltd?
INDO-MIM Ltd Debt-to-Equity ratio is 0.70, which is above the industry average of 0.18, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of INDO-MIM Ltd?
INDO-MIM Ltd Debt to cash flow from operations is 2.43, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of INDO-MIM Ltd?

Q.1 Promoter shareholding and pledge status of INDO-MIM Ltd?
Promoters hold 77.65% of the INDO-MIM Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does INDO-MIM Ltd performance compare with that of its Peers?

Q.1 Revenue growth of INDO-MIM Ltd vs industry peers?
INDO-MIM Ltd revenue CAGR is 14.67%, compared to the industry median CAGR of 4.08%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 15.9 4.1
Gross Profit Growth (%) 28.9 21.8
Operating Profit Growth (%) 26 21.2
Net Profit Growth (%) 40.3 26.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.84 0.89
ROE (%) 23.2 12.81
ROCE (%) 21.84 15.27
Cash Conversion Cycle (days) 112.77 96

Valuation & price assessment

Q.1 Stock return of INDO-MIM 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-MIM Ltd vs historical?
The current P/E ratio of 94.85 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 94.85 - 29.36
Price to Book 16.71 - 2.91
Price to Sales 13.69 - 2.93
EV to EBITDA 43.81 - 15.77

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