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Check Before You Invest : Roopa Industries Ltd

BSE: 530991 NSE: ISIN: INE443C01010
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Roopa Industries Ltd belong to?
Roopa Industries Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Roopa Industries Ltd a good quality company?
Roopa 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 Roopa Industries Ltd undervalued or overvalued?
Roopa 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 21.96 25.01
Price to Book 2.23 2.56
Price to Sales 0.33 0.52
EV to EBITDA 11.51 10.99
Q.4 Is Roopa Industries Ltd a good buy now?
Roopa 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 Roopa Industries Ltd?
Roopa Industries Ltd revenue growth is 71.4% for FY-2025, which is above its 5-year CAGR of 34.28%, indicating faster growth.

Q.2 Gross Profit margin of Roopa Industries Ltd?
Roopa Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 3% for FY-2025, which is below its 5-year median of 4.3%, indicating decreasing margins.

Q.3 Operating Profit Margin of Roopa Industries Ltd?
Roopa Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.44% for FY-2025, which is below its 5-year median of 6.46% indicating decreasing margins.

Q.4 Net Profit Margin of Roopa Industries Ltd?
Roopa Industries Ltd Net Profit Margin is 1.69% for FY-2025, is below its 5-year median of 1.98%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 3 4.3
Operating Profit Margin (%) 3.44 6.46
Net Profit Margin (%) 1.69 1.98

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Roopa Industries Ltd?
Roopa Industries Ltd Return on Asset is 2.88%, which is above its 5-year historical median of 2.51%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Roopa Industries Ltd?
Roopa Industries Ltd Return on capital employed is 12.08% for FY-2025, which is in line with its 5-year historical median of 12.08%. 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 Roopa Industries Ltd?
Roopa Industries Ltd Return on equity is 12.34% for FY-2025, which is above its 5-year historical median of 10.17%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Roopa Industries Ltd?
Roopa Industries Ltd Cash conversion cycle is 80 days, below its 5-year historical median of 99 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.71 1.16
ROE (%) 12.34 10.17
ROCE (%) 12.08 12.08
Cash Conversion Cycle 80 days 99 days

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

Q.9 Debt to Equity ratio of Roopa Industries Ltd?
Roopa Industries Ltd Debt-to-Equity ratio is 1.90, which is above the industry average of 0.14, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Roopa Industries Ltd?
Roopa Industries Ltd Debt to cash flow from operations is -5.05, which is at a unhealthy level.

Ownership & governance

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

Q.1 Promoter shareholding and pledge status of Roopa Industries Ltd?
Promoters hold 48.03% of the Roopa Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Roopa Industries Ltd vs industry peers?
Roopa Industries Ltd revenue CAGR is 34.28%, compared to the industry median CAGR of 5.35%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 71.4 5.4
Gross Profit Growth (%) 17.4 14
Operating Profit Growth (%) -7.4 11.5
Net Profit Growth (%) 33.6 12
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.71 0.79
ROE (%) 12.34 9.17
ROCE (%) 12.08 11.52
Cash Conversion Cycle (days) 79.59 76

Valuation & price assessment

Q.1 Stock return of Roopa Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 21.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
21.1% 29.3% 8.5% -8.3%
Q.2 Valuation ratios of Roopa Industries Ltd vs historical?
The current P/E ratio of 21.96 is lower than its historical median of 25.01, 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 21.96 25.01 31.09
Price to Book 2.23 2.56 2.85
Price to Sales 0.33 0.52 2.82
EV to EBITDA 11.51 10.99 15.99

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