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Check Before You Invest : IEL Ltd

BSE: 524614 NSE: ISIN: INE056E01024
  |   Sector:  Agriculture & Allied activities   |   Industry:  Solvent Extraction

Snapshot

Q.1 Which industry/sub-sector does IEL Ltd belong to?
IEL Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Solvent Extraction segment.
Q.2 Is IEL Ltd a good quality company?
IEL 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 IEL Ltd undervalued or overvalued?
IEL 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 - 38.90
Price to Book 1.75 2.44
Price to Sales 139.52 5.47
EV to EBITDA -123.01 29.76
Q.4 Is IEL Ltd a good buy now?
IEL 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 IEL Ltd?
IEL Ltd revenue growth is -64.3% for FY-2025, which is below its 5-year CAGR of 9.74%, indicating slower growth.

Q.2 Gross Profit margin of IEL Ltd?
IEL Ltd Gross profit margin which is the profit after deduction of direct costs, is 10% for FY-2025, which is below its 5-year median of 23.5%, indicating decreasing margins.

Q.3 Operating Profit Margin of IEL Ltd?
IEL Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.88% for FY-2025, which is above its 5-year median of 2.19% indicating increasing margins.

Q.4 Net Profit Margin of IEL Ltd?
IEL Ltd Net Profit Margin is 7.01% for FY-2025, is below its 5-year median of 14.3%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 10 23.5
Operating Profit Margin (%) 9.88 2.19
Net Profit Margin (%) 7.01 14.3

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of IEL Ltd?
IEL Ltd Return on Asset is 1.7%, which is below its 5-year historical median of 7.07%, indicating deteriorated asset utilization efficiency.

Q.6 Cash conversion cycle of IEL Ltd?
IEL Ltd Cash conversion cycle is -11 days, below its 5-year historical median of 14 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.7 Debt to Equity ratio of IEL Ltd?
IEL Ltd Debt-to-Equity ratio is 0.02, which is lower the industry average of 0.09, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of IEL Ltd?
IEL Ltd Debt to cash flow from operations is 0.43, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of IEL Ltd?

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

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of IEL Ltd vs industry peers?
IEL Ltd revenue CAGR is 9.74%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -64.3 0
Gross Profit Growth (%) 63.2 32
Operating Profit Growth (%) 57.9 34.1
Net Profit Growth (%) 65.4 24.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.24 0.24
ROE (%) - 1.83
ROCE (%) - 3.23
Cash Conversion Cycle (days) -10.58 14

Valuation & price assessment

Q.1 Stock return of IEL Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 17.8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
17.8% 51.4% -18.8% 18.7%
Q.2 Valuation ratios of IEL Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 38.90, 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 - 38.90 17.51
Price to Book 1.75 2.44 1.62
Price to Sales 139.52 5.47 0.62
EV to EBITDA -123.01 29.76 9.20

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