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INVESTMENT INSIGHTS

Check Before You Invest : Sadhana Nitro Chem Ltd

BSE: 506642 NSE: SADHNANIQ ISIN: INE888C01040
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Chemicals

Snapshot

Q.1 Which industry/sub-sector does Sadhana Nitro Chem Ltd belong to?
Sadhana Nitro Chem Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.
Q.2 Is Sadhana Nitro Chem Ltd a good quality company?
Sadhana Nitro Chem Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Sadhana Nitro Chem Ltd undervalued or overvalued?
Sadhana Nitro Chem Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Sadhana Nitro Chem Ltd a good buy now?
Sadhana Nitro Chem 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

Q.1 Revenue growth of Sadhana Nitro Chem Ltd?
Sadhana Nitro Chem Ltd revenue growth is -29.4% for FY-2025 , which is below its 5 year CAGR of 2.1% , indicating slower growth.
Q.2 Gross Profit margin of Sadhana Nitro Chem Ltd?
Sadhana Nitro Chem Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.2% for FY-2025 , which is above its 5 year median of 16.4% , indicating increasing margins.
Q.3 Operating Profit Margin of Sadhana Nitro Chem Ltd?
Sadhana Nitro Chem Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 29.62% for FY-2025 , which is above its 5 year median of 20.79% indicating increasing margins.
Q.4 Net Profit Margin of Sadhana Nitro Chem Ltd?
Sadhana Nitro Chem Ltd Net Profit Margin is 3.91% for FY-2025 , is below with its 5 year median of 3.92%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 18.2 16.4
Operating Profit Margin 29.62 20.79
Net Profit Margin 3.91 3.92
Q.5 Return on Asset of Sadhana Nitro Chem Ltd?
Sadhana Nitro Chem Ltd Return on Asset is 0.89%, which is below its 5 year historical median of 1.54%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Sadhana Nitro Chem Ltd?
Sadhana Nitro Chem Ltd Return on equity is 2.09% for FY-2025 , which is below its historical median of 3.34%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Sadhana Nitro Chem Ltd?
Sadhana Nitro Chem Ltd Return on capital employed is 5.61% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Sadhana Nitro Chem Ltd?
Sadhana Nitro Chem Ltd Cash conversion cycle is 573 days, above its historical median of 330 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.23 0.35
ROE 2.09 3.34
ROCE 5.61 5.61
Cash Conversion Cycle 573 days 330 days
Q.9 Debt to Equity ratio of Sadhana Nitro Chem Ltd?
Sadhana Nitro Chem Ltd Debt-to-Equity ratio is 0.85 , which is above with the industry average of 0.13 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Sadhana Nitro Chem Ltd?
Sadhana Nitro Chem Ltd Debt to cash flow from operations is 4.86 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sadhana Nitro Chem Ltd?
Promoters hold 60.90% of the Sadhana Nitro Chem Ltd, with 3.69% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sadhana Nitro Chem Ltd vs industry peers?
Sadhana Nitro Chem Ltd revenue CAGR is 2.08% , compared to the industry median CAGR of 7.58% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 133.4 202
Gross Profit 24.2 23.6
Operating Profit 39 24
Net Profit 5 12
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.23 0.93
ROE 2.09 10.17
ROCE 5.61 12.96
Cash Conversion Cycle (days) 573.39 62

Valuation & price assessment

Q.1 Stock return of Sadhana Nitro Chem Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 33.4% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 33.4% -5% -50.2% -59.6%
Q.3 Valuation ratios of Sadhana Nitro Chem Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 243.82 41.15
Price to Book 1.46 7.76 2.38
Price to Sales 9.56 10.06 1.93
EV to EBITDA -75.19 43.04 13.71

Check more companies

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3. Deepak Nitrite
4. Atul
5. Tata Chemicals
6. Aarti Inds
7. BASF India
8. Deepak Fert & Petro
9. Aether Industries
10. Anupam Rasayan India
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