Check Before You Invest : Pradeep Metals Ltd

Q: Which industry/sub-sector does Pradeep Metals Ltd belong to?

Pradeep Metals Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q: Is Pradeep Metals Ltd a good quality company?

Pradeep Metals 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 Pradeep Metals Ltd undervalued or overvalued?

Pradeep Metals 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. Price to Earnings, Current: 25.84, Historic Median: 17.71. Price to Book, Current: 4.03, Historic Median: 2.85. Price to Sales, Current: 2, Historic Median: 1.27. EV to EBITDA, Current: 14.51, Historic Median: 10.15

Q: Is Pradeep Metals Ltd a good buy now?

Pradeep Metals 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 Pradeep Metals Ltd?

Pradeep Metals Ltd revenue growth is 17.2% for FY-2025, which is above its 5-year CAGR of 10.84%, indicating faster growth.

Q: Gross Profit margin of Pradeep Metals Ltd?

Pradeep Metals Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.1% for FY-2025, which is in line with its 5-year median of 12.8%, indicating stable margins.

Q: Operating Profit Margin of Pradeep Metals Ltd?

Pradeep Metals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.53% for FY-2025, which is in line with its 5-year median of 13.53% indicating stable margins.

Q: Net Profit Margin of Pradeep Metals Ltd?

Pradeep Metals Ltd Net Profit Margin is 7.86% for FY-2025, is above its 5-year median of 7.22%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 13.1, Historic Median: 12.8. Operating Profit Margin (%), Current: 13.53, Historic Median: 13.53. Net Profit Margin (%), Current: 7.86, Historic Median: 7.22

Q: Return on Asset of Pradeep Metals Ltd?

Pradeep Metals Ltd Return on Asset is 9.28%, which is above its 5-year historical median of 8.23%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Pradeep Metals Ltd?

Pradeep Metals Ltd Return on capital employed is 19.28% for FY-2025, which is above its 5-year historical median of 17.31%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Pradeep Metals Ltd

Snapshot

Q.1 Which industry/sub-sector does Pradeep Metals Ltd belong to?

Pradeep Metals Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q.2 Is Pradeep Metals Ltd a good quality company?

Pradeep Metals 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 Pradeep Metals Ltd undervalued or overvalued?

Pradeep Metals 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	25.84	17.71
Price to Book	4.03	2.85
Price to Sales	2	1.27
EV to EBITDA	14.51	10.15

Q.4 Is Pradeep Metals Ltd a good buy now?

Pradeep Metals 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 Pradeep Metals Ltd?

Pradeep Metals Ltd revenue growth is 17.2% for FY-2025, which is above its 5-year CAGR of 10.84%, indicating faster growth.

Q.2 Gross Profit margin of Pradeep Metals Ltd?

Pradeep Metals Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.1% for FY-2025, which is in line with its 5-year median of 12.8%, indicating stable margins.

Q.3 Operating Profit Margin of Pradeep Metals Ltd?

Pradeep Metals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.53% for FY-2025, which is in line with its 5-year median of 13.53% indicating stable margins.

Q.4 Net Profit Margin of Pradeep Metals Ltd?

Pradeep Metals Ltd Net Profit Margin is 7.86% for FY-2025, is above its 5-year median of 7.22%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	13.1	12.8
Operating Profit Margin (%)	13.53	13.53
Net Profit Margin (%)	7.86	7.22

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Pradeep Metals Ltd?

Pradeep Metals Ltd Return on Asset is 9.28%, which is above its 5-year historical median of 8.23%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Pradeep Metals Ltd?

Pradeep Metals Ltd Return on capital employed is 19.28% for FY-2025, which is above its 5-year historical median of 17.31%. 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 Pradeep Metals Ltd?

Pradeep Metals Ltd Return on equity is 17.56% for FY-2025, which is above its 5-year historical median of 16.53%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Pradeep Metals Ltd?

Pradeep Metals Ltd Cash conversion cycle is 103 days, in line with its 5-year historical median of 108 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)	1.18	1.17
ROE (%)	17.56	16.53
ROCE (%)	19.28	17.31
Cash Conversion Cycle	103 days	108 days

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

Q.9 Debt to Equity ratio of Pradeep Metals Ltd?

Pradeep Metals Ltd Debt-to-Equity ratio is 0.44, which is above the industry average of 0.18, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Pradeep Metals Ltd?

Pradeep Metals Ltd Debt to cash flow from operations is 2.13, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Pradeep Metals Ltd?

Q.1 Promoter shareholding and pledge status of Pradeep Metals Ltd?

Promoters hold 73.48% of the Pradeep Metals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Pradeep Metals Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Pradeep Metals Ltd vs industry peers?

Pradeep Metals Ltd revenue CAGR is 10.84%, compared to the industry median CAGR of 3.04%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	17.2	3
Gross Profit Growth (%)	21.9	23.6
Operating Profit Growth (%)	21.2	21.7
Net Profit Growth (%)	27.8	27.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.18	0.89
ROE (%)	17.56	12.09
ROCE (%)	19.28	14.64
Cash Conversion Cycle (days)	103.01	98

Valuation & price assessment

Q.1 Stock return of Pradeep Metals Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 23.2% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	23.2%	52.3%	36.8%	49.9%

Q.2 Valuation ratios of Pradeep Metals Ltd vs historical?

The current P/E ratio of 25.84 is higher than its historical median of 17.71, 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	25.84	17.71	29.36
Price to Book	4.03	2.85	2.91
Price to Sales	2	1.27	2.93
EV to EBITDA	14.51	10.15	15.77

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Check Before You Invest : Pradeep Metals Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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