Check Before You Invest : Innomet Advanced Materials Ltd

Snapshot

Q.1 Which industry/sub-sector does Innomet Advanced Materials Ltd belong to?

Innomet Advanced Materials Ltd belongs to the Metals & Mining sector, operating specifically within the Metal - Ferrous segment.

Q.2 Is Innomet Advanced Materials Ltd a good quality company?

Innomet Advanced Materials Ltd is a weak quality company, based on a inconsistent 5-year financial track record.

Q.3 Is Innomet Advanced Materials Ltd undervalued or overvalued?

Innomet Advanced Materials Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Innomet Advanced Materials Ltd a good buy now?

Innomet Advanced Materials Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Return on capital employed (ROCE) of Innomet Advanced Materials Ltd?

Innomet Advanced Materials Ltd Return on capital employed is 8.54% for FY-2025, which is below its 5-year historical median of 20.11%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.2 Return on Asset of Innomet Advanced Materials Ltd?

Innomet Advanced Materials Ltd Return on Asset is 3.92%, which is in line with its 5-year historical median of 3.92%, indicating stable asset utilization efficiency.

Q.3 Return on Equity (ROE) of Innomet Advanced Materials Ltd?

Innomet Advanced Materials Ltd Return on equity is 6.66% for FY-2025, which is below its 5-year historical median of 18.08%, indicating the business is making worse use of its shareholders capital.

Q.4 Gross Profit margin of Innomet Advanced Materials Ltd?

Innomet Advanced Materials Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.7% for FY-2025, which is in line with its 5-year median of 13.7%, indicating stable margins.

Q.5 Operating Profit Margin of Innomet Advanced Materials Ltd?

Innomet Advanced Materials Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.56% for FY-2025, which is in line with its 5-year median of 15.56% indicating stable margins.

Q.6 Net Profit Margin of Innomet Advanced Materials Ltd?

Innomet Advanced Materials Ltd Net Profit Margin is 5.74% for FY-2025, is in line with with its 5-year median of 5.74%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	13.7	13.7
Operating Profit Margin	15.56	15.56
Net Profit Margin	5.74	5.74

Q.7 Debt to Equity ratio of Innomet Advanced Materials Ltd?

Innomet Advanced Materials Ltd Debt-to-Equity ratio is 0.37, which is lower with the industry average of 0.41, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Innomet Advanced Materials Ltd?

Innomet Advanced Materials Ltd Debt to cash flow from operations is -0.82, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Innomet Advanced Materials Ltd?

Promoters hold 56.72% of the Innomet Advanced Materials Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Innomet Advanced Materials Ltd vs industry peers?

Innomet Advanced Materials Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 13.56%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-	13.6
Gross Profit Growth	-	14.5
Operating Profit Growth	25	10.9
Net Profit Growth	-33.3	16.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.68	1
ROE	6.66	13.69
ROCE	8.54	20.11
Cash Conversion Cycle (days)	155.58	57

Valuation & price assessment

Q.1 Stock return of Innomet Advanced Materials Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -32.56% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-32.6%

Q.3 Valuation ratios of Innomet Advanced Materials Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	63.14	85.02	16.14
Price to Book	2.85	4.28	4.28
Price to Sales	3.62	6.66	5.60
EV to EBITDA	24.4	38.68	8.14

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