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Check Before You Invest : Mahalaxmi Rubtech Ltd

BSE: 514450 NSE: MHLXMIRU ISIN: INE112D01035
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Mahalaxmi Rubtech Ltd belong to?
Mahalaxmi Rubtech Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Mahalaxmi Rubtech Ltd a good quality company?
Mahalaxmi Rubtech Ltd is a average quality company, based on a somewhat consistent 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 Mahalaxmi Rubtech Ltd undervalued or overvalued?
Mahalaxmi Rubtech 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 8.9 19.96
Price to Book 2.19 2.88
Price to Sales 1.77 1.30
EV to EBITDA 5.09 8.16
Q.4 Is Mahalaxmi Rubtech Ltd a good buy now?
Mahalaxmi Rubtech 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 Mahalaxmi Rubtech Ltd?
Mahalaxmi Rubtech Ltd revenue growth is 19.8% for FY-2025, which is above its 5-year CAGR of -12.52%, indicating faster growth.

Q.2 Gross Profit margin of Mahalaxmi Rubtech Ltd?
Mahalaxmi Rubtech Ltd Gross profit margin which is the profit after deduction of direct costs, is 27.9% for FY-2025, which is above its 5-year median of 22.9%, indicating increasing margins.

Q.3 Operating Profit Margin of Mahalaxmi Rubtech Ltd?
Mahalaxmi Rubtech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 25.86% for FY-2025, which is above its 5-year median of 23.78% indicating increasing margins.

Q.4 Net Profit Margin of Mahalaxmi Rubtech Ltd?
Mahalaxmi Rubtech Ltd Net Profit Margin is 18.21% for FY-2025, is above its 5-year median of 14.35%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 27.9 22.9
Operating Profit Margin (%) 25.86 23.78
Net Profit Margin (%) 18.21 14.35

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Mahalaxmi Rubtech Ltd?
Mahalaxmi Rubtech Ltd Return on Asset is 17.71%, which is above its 5-year historical median of 8.49%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Mahalaxmi Rubtech Ltd?
Mahalaxmi Rubtech Ltd Return on capital employed is 30.2% for FY-2025, which is above its 5-year historical median of 15.31%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Mahalaxmi Rubtech Ltd?
Mahalaxmi Rubtech Ltd Return on equity is 27.59% for FY-2025, which is above its 5-year historical median of 18.34%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Mahalaxmi Rubtech Ltd?
Mahalaxmi Rubtech Ltd Cash conversion cycle is 68 days, in line with its 5-year historical median of 68 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.97 0.95
ROE (%) 27.59 18.34
ROCE (%) 30.2 15.31
Cash Conversion Cycle 68 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 Mahalaxmi Rubtech Ltd?
Mahalaxmi Rubtech Ltd Debt-to-Equity ratio is 0.21, which is lower the industry average of 0.42, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Mahalaxmi Rubtech Ltd?
Mahalaxmi Rubtech Ltd Debt to cash flow from operations is 1.06, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Mahalaxmi Rubtech Ltd?

Q.1 Promoter shareholding and pledge status of Mahalaxmi Rubtech Ltd?
Promoters hold 64.80% of the Mahalaxmi Rubtech Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Mahalaxmi Rubtech Ltd vs industry peers?
Mahalaxmi Rubtech Ltd revenue CAGR is -12.52%, compared to the industry median CAGR of 0%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 19.8 -
Gross Profit Growth (%) 44.4 9.1
Operating Profit Growth (%) 33.3 8.5
Net Profit Growth (%) 54.6 13
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.97 0.95
ROE (%) 27.59 4.34
ROCE (%) 30.2 7.56
Cash Conversion Cycle (days) 67.7 101

Valuation & price assessment

Q.1 Stock return of Mahalaxmi Rubtech Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 19.2% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
19.2% 29.1% -11.3% -21.5%
Q.2 Valuation ratios of Mahalaxmi Rubtech Ltd vs historical?
The current P/E ratio of 8.9 is lower than its historical median of 19.96, 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 8.9 19.96 20.16
Price to Book 2.19 2.88 1.32
Price to Sales 1.77 1.30 1.06
EV to EBITDA 5.09 8.16 9.31

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