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Check Before You Invest : Investment & Precision Castings Ltd

BSE: 504786 NSE: INVPRECQ ISIN: INE155E01016
  |   Sector:  Automobiles   |   Industry:  Castings/Forgings

Snapshot

Q.1 Which industry/sub-sector does Investment & Precision Castings Ltd belong to?
Investment & Precision Castings Ltd belongs to the Automobiles sector, operating specifically within the Castings/Forgings segment.
Q.2 Is Investment & Precision Castings Ltd a good quality company?
Investment & Precision Castings Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Investment & Precision Castings Ltd undervalued or overvalued?
Investment & Precision Castings Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Investment & Precision Castings Ltd a good buy now?
Investment & Precision Castings 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

Q.1 Revenue growth of Investment & Precision Castings Ltd?
Investment & Precision Castings Ltd revenue growth is -3.5% for FY-2025 , which is below its 5 year CAGR of 11.6% , indicating slower growth.
Q.2 Gross Profit margin of Investment & Precision Castings Ltd?
Investment & Precision Castings Ltd Gross profit margin which is the profit after deduction of direct costs, is 10% for FY-2025 , which is above its 5 year median of 8.9% , indicating increasing margins.
Q.3 Operating Profit Margin of Investment & Precision Castings Ltd?
Investment & Precision Castings Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.71% for FY-2025 , which is above its 5 year median of 12.73% indicating increasing margins.
Q.4 Net Profit Margin of Investment & Precision Castings Ltd?
Investment & Precision Castings Ltd Net Profit Margin is 3.67% for FY-2025 , is above with its 5 year median of 3.27%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 10 8.9
Operating Profit Margin 13.71 12.73
Net Profit Margin 3.67 3.27
Q.5 Return on Asset of Investment & Precision Castings Ltd?
Investment & Precision Castings Ltd Return on Asset is 2.99%, which is above its 5 year historical median of 2.9%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Investment & Precision Castings Ltd?
Investment & Precision Castings Ltd Return on equity is 6.84% for FY-2025 , which is in line with its historical median of 6.84%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Investment & Precision Castings Ltd?
Investment & Precision Castings Ltd Return on capital employed is 9.64% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Investment & Precision Castings Ltd?
Investment & Precision Castings Ltd Cash conversion cycle is 130 days, above its historical median of 107 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.81 0.81
ROE 6.84 6.84
ROCE 9.64 9.64
Cash Conversion Cycle 130 days 107 days
Q.9 Debt to Equity ratio of Investment & Precision Castings Ltd?
Investment & Precision Castings Ltd Debt-to-Equity ratio is 0.71 , which is above with the industry average of 0.34 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Investment & Precision Castings Ltd?
Investment & Precision Castings Ltd Debt to cash flow from operations is 3.39 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Investment & Precision Castings Ltd?
Promoters hold 51.97% of the Investment & Precision Castings Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Investment & Precision Castings Ltd vs industry peers?
Investment & Precision Castings Ltd revenue CAGR is 11.64% , compared to the industry median CAGR of 7.48% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 165.1 138.5
Gross Profit 16.5 12.1
Operating Profit 23 13.6
Net Profit 6 5.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.81 1.22
ROE 6.84 9.98
ROCE 9.64 12.36
Cash Conversion Cycle (days) 130.3 78

Valuation & price assessment

Q.1 Stock return of Investment & Precision Castings Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 23% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 23% 46.4% 52.9% 59.5%
Q.3 Valuation ratios of Investment & Precision Castings Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 63.69 38.29 38.01
Price to Book 6.37 3.08 2.45
Price to Sales 3.57 1.46 1.59
EV to EBITDA 24.23 13.68 12.17

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