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Check Before You Invest : Infinium Pharmachem Ltd

BSE: 0 NSE: INFINIUM ISIN: INE0MRE01011
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Chemicals

Snapshot

Q.1 Which industry/sub-sector does Infinium Pharmachem Ltd belong to?
Infinium Pharmachem Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.
Q.2 Is Infinium Pharmachem Ltd a good quality company?
Infinium Pharmachem 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 Infinium Pharmachem Ltd undervalued or overvalued?
Infinium Pharmachem 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 38.81 37.28
Price to Book 3.11 5.80
Price to Sales 2.4 3.01
EV to EBITDA 19.68 20.75
Q.4 Is Infinium Pharmachem Ltd a good buy now?
Infinium Pharmachem Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 Infinium Pharmachem Ltd?
Infinium Pharmachem Ltd revenue growth is 11.9% for FY-2025, which is below its 5-year CAGR of 30.6%, indicating slower growth.

Q.2 Gross Profit margin of Infinium Pharmachem Ltd?
Infinium Pharmachem Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.7% for FY-2025, which is in line with its 5-year median of 10.8%, indicating stable margins.

Q.3 Operating Profit Margin of Infinium Pharmachem Ltd?
Infinium Pharmachem Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.09% for FY-2025, which is below its 5-year median of 11.78% indicating decreasing margins.

Q.4 Net Profit Margin of Infinium Pharmachem Ltd?
Infinium Pharmachem Ltd Net Profit Margin is 6.19% for FY-2025, is below its 5-year median of 7.43%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 10.7 10.8
Operating Profit Margin (%) 11.09 11.78
Net Profit Margin (%) 6.19 7.43

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Infinium Pharmachem Ltd?
Infinium Pharmachem Ltd Return on Asset is 6.95%, which is below its 5-year historical median of 13.8%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Infinium Pharmachem Ltd?
Infinium Pharmachem Ltd Return on capital employed is 13.22% for FY-2025, which is below its 5-year historical median of 31.77%. 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 Infinium Pharmachem Ltd?
Infinium Pharmachem Ltd Return on equity is 10.36% for FY-2025, which is below its 5-year historical median of 47.87%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Infinium Pharmachem Ltd?
Infinium Pharmachem Ltd Cash conversion cycle is 127 days, above its 5-year historical median of 68 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) 1.12 1.85
ROE (%) 10.36 47.87
ROCE (%) 13.22 31.77
Cash Conversion Cycle 127 days 68 days

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

Q.9 Debt to Equity ratio of Infinium Pharmachem Ltd?
Infinium Pharmachem Ltd Debt-to-Equity ratio is 0.43, which is above the industry average of 0.13, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Infinium Pharmachem Ltd?
Infinium Pharmachem Ltd Debt to cash flow from operations is -1.75, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Infinium Pharmachem Ltd?

Q.1 Promoter shareholding and pledge status of Infinium Pharmachem Ltd?
Promoters hold 64.91% of the Infinium Pharmachem Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Infinium Pharmachem Ltd vs industry peers?
Infinium Pharmachem Ltd revenue CAGR is 30.60%, 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 (%) 11.9 7.5
Gross Profit Growth (%) -11.8 12.1
Operating Profit Growth (%) -11.8 11.7
Net Profit Growth (%) -27.3 9.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.12 0.93
ROE (%) 10.36 10.17
ROCE (%) 13.22 12.96
Cash Conversion Cycle (days) 126.96 62

Valuation & price assessment

Q.1 Stock return of Infinium Pharmachem Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of -8.31% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - -8.3% -33.3%
Q.2 Valuation ratios of Infinium Pharmachem Ltd vs historical?
The current P/E ratio of 38.81 is in line with than its historical median of 37.28, indicating that the stock is trading near 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 38.81 37.28 28.17
Price to Book 3.11 5.80 2.22
Price to Sales 2.4 3.01 1.93
EV to EBITDA 19.68 20.75 14.20

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