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Check Before You Invest : Seemax Resources Ltd

BSE: 544813 NSE: ISIN: INE1EVO01017
  |   Sector:  Miscellaneous   |   Industry:  Business Support

Snapshot

Q.1 Which industry/sub-sector does Seemax Resources Ltd belong to?
Seemax Resources Ltd belongs to the Miscellaneous sector, operating specifically within the Business Support segment.
Q.2 Is Seemax Resources Ltd a good quality company?
Seemax Resources 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 Seemax Resources Ltd undervalued or overvalued?
Seemax Resources 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 3-year
Historic Median
Price to Earnings 13.92 14.38
Price to Book 0.96 1.27
Price to Sales 1.77 2.23
EV to EBITDA 6.97 8.25
Q.4 Is Seemax Resources Ltd a good buy now?
Seemax Resources 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.

Q.1 Gross Profit margin of Seemax Resources Ltd?
Seemax Resources Ltd Gross profit margin which is the profit after deduction of direct costs, is 25.4% for FY-2025, which is in line with its 3-year median of 25.2%, indicating stable margins.

Q.2 Operating Profit Margin of Seemax Resources Ltd?
Seemax Resources Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 34.25% for FY-2025, which is in line with its 3-year median of 34.17% indicating stable margins.

Q.3 Net Profit Margin of Seemax Resources Ltd?
Seemax Resources Ltd Net Profit Margin is 15.52% for FY-2025, is above its 3-year median of 12.57%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 25.4 25.2
Operating Profit Margin (%) 34.25 34.17
Net Profit Margin (%) 15.52 12.57

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Seemax Resources Ltd?
Seemax Resources Ltd Return on Asset is 12.74%, which is above its 3-year historical median of 10.19%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Seemax Resources Ltd?
Seemax Resources Ltd Return on capital employed is 29.17% for FY-2025, which is above its 3-year historical median of 26.07%. 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 Seemax Resources Ltd?
Seemax Resources Ltd Return on equity is 48.65% for FY-2025, which is in line with its 3-year historical median of 48.65%, indicating the business is making similar 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 Seemax Resources Ltd?
Seemax Resources Ltd Debt-to-Equity ratio is 1.69, which is above the industry average of 0.06, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Seemax Resources Ltd?
Seemax Resources Ltd Debt to cash flow from operations is 4.13, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Seemax Resources Ltd?

Q.1 Promoter shareholding and pledge status of Seemax Resources Ltd?
Promoters hold 68.18% of the Seemax Resources Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Seemax Resources Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Seemax Resources Ltd vs industry peers?
Seemax Resources Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 12.87%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) - 12.9
Gross Profit Growth (%) 28 22.4
Operating Profit Growth (%) 28.3 18.2
Net Profit Growth (%) 56.6 18.4
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 0.82 0.35
ROE (%) 48.65 5.44
ROCE (%) 29.17 12.57
Cash Conversion Cycle (days) 54.52 42

Valuation & price assessment

Q.1 Stock return of Seemax Resources Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Seemax Resources Ltd vs historical?
The current P/E ratio of 13.92 is in line with than its historical median of 14.38, indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 13.92 14.38 31.37
Price to Book 0.96 1.27 2.62
Price to Sales 1.77 2.23 5.96
EV to EBITDA 6.97 8.25 11.15

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