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Check Before You Invest : Roto Pumps Ltd

BSE: 517500 NSE: ROTO ISIN: INE535D01037
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Compressors / Pumps

Snapshot

Q.1 Which industry/sub-sector does Roto Pumps Ltd belong to?
Roto Pumps Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Compressors / Pumps segment.
Q.2 Is Roto Pumps Ltd a good quality company?
Roto Pumps 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 Roto Pumps Ltd undervalued or overvalued?
Roto Pumps 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 40.99 36.07
Price to Book 4.85 5.91
Price to Sales 4.96 5.39
EV to EBITDA 20.07 20.46
Q.4 Is Roto Pumps Ltd a good buy now?
Roto Pumps 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 Roto Pumps Ltd?
Roto Pumps Ltd revenue growth is 4.6% for FY-2025, which is below its 5-year CAGR of 14.59%, indicating slower growth.

Q.2 Gross Profit margin of Roto Pumps Ltd?
Roto Pumps Ltd Gross profit margin which is the profit after deduction of direct costs, is 23.1% for FY-2025, which is below its 5-year median of 25.9%, indicating decreasing margins.

Q.3 Operating Profit Margin of Roto Pumps Ltd?
Roto Pumps Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 23.31% for FY-2025, which is below its 5-year median of 25.6% indicating decreasing margins.

Q.4 Net Profit Margin of Roto Pumps Ltd?
Roto Pumps Ltd Net Profit Margin is 12.81% for FY-2025, is below its 5-year median of 15.88%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 23.1 25.9
Operating Profit Margin (%) 23.31 25.6
Net Profit Margin (%) 12.81 15.88

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Roto Pumps Ltd?
Roto Pumps Ltd Return on Asset is 10.48%, which is below its 5-year historical median of 13.03%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Roto Pumps Ltd?
Roto Pumps Ltd Return on capital employed is 18.49% for FY-2025, which is below its 5-year historical median of 24.48%. 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 Roto Pumps Ltd?
Roto Pumps Ltd Return on equity is 14.77% for FY-2025, which is below its 5-year historical median of 19.8%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Roto Pumps Ltd?
Roto Pumps Ltd Cash conversion cycle is 120 days, in line with its 5-year historical median of 118 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) 0.82 0.82
ROE (%) 14.77 19.8
ROCE (%) 18.49 24.48
Cash Conversion Cycle 120 days 118 days

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

Q.9 Debt to Equity ratio of Roto Pumps Ltd?
Roto Pumps Ltd Debt-to-Equity ratio is 0.11, which is above the industry average of 0.07, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Roto Pumps Ltd?
Roto Pumps Ltd Debt to cash flow from operations is 0.67, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Roto Pumps Ltd?

Q.1 Promoter shareholding and pledge status of Roto Pumps Ltd?
Promoters hold 66.80% of the Roto Pumps Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Roto Pumps Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Roto Pumps Ltd vs industry peers?
Roto Pumps Ltd revenue CAGR is 14.59%, compared to the industry median CAGR of 14.24%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 4.6 14.2
Gross Profit Growth (%) -6.7 18.9
Operating Profit Growth (%) -5.1 20.5
Net Profit Growth (%) -13.9 20.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.82 1
ROE (%) 14.77 15
ROCE (%) 18.49 19.99
Cash Conversion Cycle (days) 120.27 92

Valuation & price assessment

Q.1 Stock return of Roto Pumps Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 28.3% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
28.3% 27.2% 4.1% -22%
Q.2 Valuation ratios of Roto Pumps Ltd vs historical?
The current P/E ratio of 40.99 is higher than its historical median of 36.07, 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 40.99 36.07 37.40
Price to Book 4.85 5.91 5.31
Price to Sales 4.96 5.39 3.28
EV to EBITDA 20.07 20.46 22.66

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