SEBI Reg. Investment Advisor

Download App
Help Center Subscribe
Money Works 4 Me Logo MoneyWorks4Me
Talk to Advisor
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up

INVESTMENT INSIGHTS

Check Before You Invest : Machhar Industries Ltd

BSE: 543934 NSE: ISIN: INE01BT01015
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Chemicals

Snapshot

Q.1 Which industry/sub-sector does Machhar Industries Ltd belong to?
Machhar Industries Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.
Q.2 Is Machhar Industries Ltd a good quality company?
Machhar Industries 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 Machhar Industries Ltd undervalued or overvalued?
Machhar Industries Ltd appears Somewhat 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 52.88 46.70
Price to Book 2.74 2.13
Price to Sales 1.76 1.47
EV to EBITDA 18.68 16.98
Q.4 Is Machhar Industries Ltd a good buy now?
Machhar Industries 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 Machhar Industries Ltd?
Machhar Industries Ltd revenue growth is -7.4% for FY-2025, which is below its 5-year CAGR of -3.14%, indicating slower growth.

Q.2 Gross Profit margin of Machhar Industries Ltd?
Machhar Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.9% for FY-2025, which is below its 5-year median of 7.6%, indicating decreasing margins.

Q.3 Operating Profit Margin of Machhar Industries Ltd?
Machhar Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.01% for FY-2025, which is below its 5-year median of 4.84% indicating decreasing margins.

Q.4 Net Profit Margin of Machhar Industries Ltd?
Machhar Industries Ltd Net Profit Margin is 0.98% for FY-2025, is below its 5-year median of 3.78%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 3.9 7.6
Operating Profit Margin (%) 3.01 4.84
Net Profit Margin (%) 0.98 3.78

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Machhar Industries Ltd?
Machhar Industries Ltd Return on Asset is 1.24%, which is below its 5-year historical median of 4.73%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Machhar Industries Ltd?
Machhar Industries Ltd Return on capital employed is 4.07% for FY-2025, which is below its 5-year historical median of 8.71%. 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 Machhar Industries Ltd?
Machhar Industries Ltd Return on equity is 1.67% for FY-2025, which is below its 5-year historical median of 6.2%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Machhar Industries Ltd?
Machhar Industries Ltd Cash conversion cycle is 39 days, above its 5-year historical median of -2 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) 1.26 1.18
ROE (%) 1.67 6.2
ROCE (%) 4.07 8.71
Cash Conversion Cycle 39 days -2 days

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

Q.9 Debt to Equity ratio of Machhar Industries Ltd?
Machhar Industries Ltd Debt-to-Equity ratio is 0.26, 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 Machhar Industries Ltd?
Machhar Industries Ltd Debt to cash flow from operations is 12.18, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Machhar Industries Ltd?

Q.1 Promoter shareholding and pledge status of Machhar Industries Ltd?
Promoters hold 50.52% of the Machhar Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Machhar Industries Ltd vs industry peers?
Machhar Industries Ltd revenue CAGR is -3.14%, compared to the industry median CAGR of 7.53%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -7.4 7.5
Gross Profit Growth (%) -52.3 12.1
Operating Profit Growth (%) -57.3 11.7
Net Profit Growth (%) -76.6 9.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.26 0.93
ROE (%) 1.67 10.17
ROCE (%) 4.07 12.96
Cash Conversion Cycle (days) 39.06 62

Valuation & price assessment

Q.1 Stock return of Machhar Industries Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -4.27% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR		 - - - -4.3%
Q.2 Valuation ratios of Machhar Industries Ltd vs historical?
The current P/E ratio of 52.88 is higher than its historical median of 46.70, 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 52.88 46.70 28.17
Price to Book 2.74 2.13 2.22
Price to Sales 1.76 1.47 1.93
EV to EBITDA 18.68 16.98 14.20

Check more companies

1. Godrej Industries
2. Navin Fluorine Intl.
3. Deepak Nitrite
4. Deepak Fert & Petro
5. Atul
6. Aether Industries
7. Tata Chemicals
8. Aarti Industries
9. Fine Organic Inds.
10. BASF India

Check trending companies

1. Gujarat State Fertilizers & Chemicals Ltd.
2. Aurobindo Pharma Ltd.
3. Gland Pharma Ltd.
4. JBM Auto Ltd.
5. HBL Engineering Ltd.
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through: