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Check Before You Invest : Platinum Industries Ltd

BSE: 544134 NSE: PLATIND ISIN: INE0PT501018
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Chemicals

Snapshot

Q.1 Which industry/sub-sector does Platinum Industries Ltd belong to?
Platinum Industries Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.
Q.2 Is Platinum Industries Ltd a good quality company?
Platinum Industries 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 Platinum Industries Ltd undervalued or overvalued?
Platinum Industries Ltd appears Fair, as its key valuation ratios are in line with 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 32.34 31.37
Price to Book 3.43 3.90
Price to Sales 3.69 4.62
EV to EBITDA 19.85 19.63
Q.4 Is Platinum Industries Ltd a good buy now?
Platinum Industries 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

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.

Q.1 Gross Profit margin of Platinum Industries Ltd?
Platinum Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 21.3% for FY-2025, which is in line with its 5-year median of 21.3%, indicating stable margins.

Q.2 Operating Profit Margin of Platinum Industries Ltd?
Platinum Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.87% for FY-2025, which is in line with its 5-year median of 16.87% indicating stable margins.

Q.3 Net Profit Margin of Platinum Industries Ltd?
Platinum Industries Ltd Net Profit Margin is 15.03% for FY-2025, is in line with its 5-year median of 15.03%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 21.3 21.3
Operating Profit Margin (%) 16.87 16.87
Net Profit Margin (%) 15.03 15.03

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Platinum Industries Ltd?
Platinum Industries Ltd Return on Asset is 12.18%, which is below its 5-year historical median of 18.56%, indicating deteriorated asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Platinum Industries Ltd?
Platinum Industries Ltd Return on capital employed is 19.24% for FY-2025, which is below its 5-year historical median of 66.02%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Platinum Industries Ltd?
Platinum Industries Ltd Return on equity is 13.86% for FY-2025, which is below its 5-year historical median of 78.45%, indicating the business is making worse use of its shareholders capital.

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

Q.7 Debt to Equity ratio of Platinum Industries Ltd?
Platinum Industries Ltd Debt-to-Equity ratio is 0.01, which is lower the industry average of 0.13, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Platinum Industries Ltd?
Platinum Industries Ltd Debt to cash flow from operations is -2.82, which is at a unhealthy level.

Ownership & governance

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

Q.1 Promoter shareholding and pledge status of Platinum Industries Ltd?
Promoters hold 70.03% of the Platinum Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Platinum Industries Ltd vs industry peers?
Platinum Industries Ltd revenue CAGR is 0.00%, 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 (%) - 7.5
Gross Profit Growth (%) 15 12.1
Operating Profit Growth (%) -10 11.7
Net Profit Growth (%) 14 9.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.81 0.93
ROE (%) 13.86 10.17
ROCE (%) 19.24 12.96
Cash Conversion Cycle (days) 50.09 62

Valuation & price assessment

Q.1 Stock return of Platinum Industries Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -0.82% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -0.8%
Q.2 Valuation ratios of Platinum Industries Ltd vs historical?
The current P/E ratio of 32.34 is in line with than its historical median of 31.37, 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 32.34 31.37 28.17
Price to Book 3.43 3.90 2.22
Price to Sales 3.69 4.62 1.93
EV to EBITDA 19.85 19.63 14.20

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