Check Before You Invest : Permanent Magnets Ltd

Q: Which industry/sub-sector does Permanent Magnets Ltd belong to?

Permanent Magnets Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.

Q: Is Permanent Magnets Ltd a good quality company?

Permanent Magnets 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: Is Permanent Magnets Ltd undervalued or overvalued?

Permanent Magnets 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. Price to Earnings, Current: 36.78, Historic Median: 35.61. Price to Book, Current: 4.55, Historic Median: 5.46. Price to Sales, Current: 3.33, Historic Median: 3.78. EV to EBITDA, Current: 16.4, Historic Median: 18.78

Q: Is Permanent Magnets Ltd a good buy now?

Permanent Magnets 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

Q: Revenue growth of Permanent Magnets Ltd?

Permanent Magnets Ltd revenue growth is -1% for FY-2025, which is below its 5-year CAGR of 13.37%, indicating slower growth.

Q: Gross Profit margin of Permanent Magnets Ltd?

Permanent Magnets Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.8% for FY-2025, which is below its 5-year median of 21.5%, indicating decreasing margins.

Q: Operating Profit Margin of Permanent Magnets Ltd?

Permanent Magnets Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.67% for FY-2025, which is below its 5-year median of 20.68% indicating decreasing margins.

Q: Net Profit Margin of Permanent Magnets Ltd?

Permanent Magnets Ltd Net Profit Margin is 7.6% for FY-2025, is below its 5-year median of 13.83%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 14.8, Historic Median: 21.5. Operating Profit Margin (%), Current: 13.67, Historic Median: 20.68. Net Profit Margin (%), Current: 7.6, Historic Median: 13.83

Q: Return on Asset of Permanent Magnets Ltd?

Permanent Magnets Ltd Return on Asset is 8.24%, which is below its 5-year historical median of 18.43%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Permanent Magnets Ltd?

Permanent Magnets Ltd Return on capital employed is 15.11% for FY-2025, which is below its 5-year historical median of 35.09%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Permanent Magnets Ltd

Snapshot

Q.1 Which industry/sub-sector does Permanent Magnets Ltd belong to?

Permanent Magnets Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.

Q.2 Is Permanent Magnets Ltd a good quality company?

Permanent Magnets 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 Permanent Magnets Ltd undervalued or overvalued?

Permanent Magnets 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	36.78	35.61
Price to Book	4.55	5.46
Price to Sales	3.33	3.78
EV to EBITDA	16.4	18.78

Q.4 Is Permanent Magnets Ltd a good buy now?

Permanent Magnets 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 Permanent Magnets Ltd?

Permanent Magnets Ltd revenue growth is -1% for FY-2025, which is below its 5-year CAGR of 13.37%, indicating slower growth.

Q.2 Gross Profit margin of Permanent Magnets Ltd?

Permanent Magnets Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.8% for FY-2025, which is below its 5-year median of 21.5%, indicating decreasing margins.

Q.3 Operating Profit Margin of Permanent Magnets Ltd?

Permanent Magnets Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.67% for FY-2025, which is below its 5-year median of 20.68% indicating decreasing margins.

Q.4 Net Profit Margin of Permanent Magnets Ltd?

Permanent Magnets Ltd Net Profit Margin is 7.6% for FY-2025, is below its 5-year median of 13.83%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	14.8	21.5
Operating Profit Margin (%)	13.67	20.68
Net Profit Margin (%)	7.6	13.83

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Permanent Magnets Ltd?

Permanent Magnets Ltd Return on Asset is 8.24%, which is below its 5-year historical median of 18.43%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Permanent Magnets Ltd?

Permanent Magnets Ltd Return on capital employed is 15.11% for FY-2025, which is below its 5-year historical median of 35.09%. 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 Permanent Magnets Ltd?

Permanent Magnets Ltd Return on equity is 10.9% for FY-2025, which is below its 5-year historical median of 26.04%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Permanent Magnets Ltd?

Permanent Magnets Ltd Cash conversion cycle is 121 days, above its 5-year historical median of 107 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)	1.08	1.25
ROE (%)	10.9	26.04
ROCE (%)	15.11	35.09
Cash Conversion Cycle	121 days	107 days

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

Q.9 Debt to Equity ratio of Permanent Magnets Ltd?

Permanent Magnets Ltd Debt-to-Equity ratio is 0.08, which is lower the industry average of 0.29, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Permanent Magnets Ltd?

Permanent Magnets Ltd Debt to cash flow from operations is 0.32, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Permanent Magnets Ltd?

Q.1 Promoter shareholding and pledge status of Permanent Magnets Ltd?

Promoters hold 58.01% of the Permanent Magnets Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Permanent Magnets Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Permanent Magnets Ltd vs industry peers?

Permanent Magnets Ltd revenue CAGR is 13.37%, compared to the industry median CAGR of 13.01%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-1	13
Gross Profit Growth (%)	-21.1	27.9
Operating Profit Growth (%)	-22.9	28.4
Net Profit Growth (%)	-34.8	28.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.08	1.06
ROE (%)	10.9	9.8
ROCE (%)	15.11	13.55
Cash Conversion Cycle (days)	120.73	99

Valuation & price assessment

Q.1 Stock return of Permanent Magnets Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 50.6% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	50.6%	23.9%	-2.8%	12.7%

Q.2 Valuation ratios of Permanent Magnets Ltd vs historical?

The current P/E ratio of 36.78 is in line with than its historical median of 35.61, 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	36.78	35.61	38.08
Price to Book	4.55	5.46	3.97
Price to Sales	3.33	3.78	2.75
EV to EBITDA	16.4	18.78	18.75

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Check Before You Invest : Permanent Magnets Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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