Check Before You Invest : Narmada Gelatines Ltd

Q: Which industry/sub-sector does Narmada Gelatines Ltd belong to?

Narmada Gelatines Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q: Is Narmada Gelatines Ltd a good quality company?

Narmada Gelatines Ltd is a average quality company, based on a somewhat consistent 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 Narmada Gelatines Ltd undervalued or overvalued?

Narmada Gelatines 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: 10.52, Historic Median: 13.34. Price to Book, Current: 1.93, Historic Median: 1.71. Price to Sales, Current: 1.25, Historic Median: 1.07. EV to EBITDA, Current: 7.45, Historic Median: 8.53

Q: Is Narmada Gelatines Ltd a good buy now?

Narmada Gelatines 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 Narmada Gelatines Ltd?

Narmada Gelatines Ltd revenue growth is 3.9% for FY-2025, which is below its 5-year CAGR of 7.07%, indicating slower growth.

Q: Gross Profit margin of Narmada Gelatines Ltd?

Narmada Gelatines Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.2% for FY-2025, which is above its 5-year median of 11.4%, indicating increasing margins.

Q: Operating Profit Margin of Narmada Gelatines Ltd?

Narmada Gelatines Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.01% for FY-2025, which is above its 5-year median of 10.33% indicating increasing margins.

Q: Net Profit Margin of Narmada Gelatines Ltd?

Narmada Gelatines Ltd Net Profit Margin is 9.11% for FY-2025, is above its 5-year median of 8%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 13.2, Historic Median: 11.4. Operating Profit Margin (%), Current: 13.01, Historic Median: 10.33. Net Profit Margin (%), Current: 9.11, Historic Median: 8

Q: Return on Asset of Narmada Gelatines Ltd?

Narmada Gelatines Ltd Return on Asset is 11.75%, which is above its 5-year historical median of 10.67%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Narmada Gelatines Ltd?

Narmada Gelatines Ltd Return on capital employed is 19.92% for FY-2025, which is above its 5-year historical median of 16.83%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Narmada Gelatines Ltd

Snapshot

Q.1 Which industry/sub-sector does Narmada Gelatines Ltd belong to?

Narmada Gelatines Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is Narmada Gelatines Ltd a good quality company?

Narmada Gelatines Ltd is a average quality company, based on a somewhat consistent 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 Narmada Gelatines Ltd undervalued or overvalued?

Narmada Gelatines 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	10.52	13.34
Price to Book	1.93	1.71
Price to Sales	1.25	1.07
EV to EBITDA	7.45	8.53

Q.4 Is Narmada Gelatines Ltd a good buy now?

Narmada Gelatines 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 Narmada Gelatines Ltd?

Narmada Gelatines Ltd revenue growth is 3.9% for FY-2025, which is below its 5-year CAGR of 7.07%, indicating slower growth.

Q.2 Gross Profit margin of Narmada Gelatines Ltd?

Narmada Gelatines Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.2% for FY-2025, which is above its 5-year median of 11.4%, indicating increasing margins.

Q.3 Operating Profit Margin of Narmada Gelatines Ltd?

Narmada Gelatines Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.01% for FY-2025, which is above its 5-year median of 10.33% indicating increasing margins.

Q.4 Net Profit Margin of Narmada Gelatines Ltd?

Narmada Gelatines Ltd Net Profit Margin is 9.11% for FY-2025, is above its 5-year median of 8%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	13.2	11.4
Operating Profit Margin (%)	13.01	10.33
Net Profit Margin (%)	9.11	8

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Narmada Gelatines Ltd?

Narmada Gelatines Ltd Return on Asset is 11.75%, which is above its 5-year historical median of 10.67%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Narmada Gelatines Ltd?

Narmada Gelatines Ltd Return on capital employed is 19.92% for FY-2025, which is above its 5-year historical median of 16.83%. 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 Narmada Gelatines Ltd?

Narmada Gelatines Ltd Return on equity is 15.07% for FY-2025, which is above its 5-year historical median of 12.78%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Narmada Gelatines Ltd?

Narmada Gelatines Ltd Cash conversion cycle is 101 days, in line with its 5-year historical median of 104 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)	1.29	1.29
ROE (%)	15.07	12.78
ROCE (%)	19.92	16.83
Cash Conversion Cycle	101 days	104 days

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

Q.9 Debt to Equity ratio of Narmada Gelatines Ltd?

Narmada Gelatines Ltd Debt-to-Equity ratio is 0.11, which is lower the industry average of 0.13, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Narmada Gelatines Ltd?

Narmada Gelatines Ltd Debt to cash flow from operations is 0.75, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Narmada Gelatines Ltd?

Q.1 Promoter shareholding and pledge status of Narmada Gelatines Ltd?

Promoters hold 75.00% of the Narmada Gelatines Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Narmada Gelatines Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Narmada Gelatines Ltd vs industry peers?

Narmada Gelatines Ltd revenue CAGR is 7.07%, compared to the industry median CAGR of 7.53%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	3.9	7.5
Gross Profit Growth (%)	8.7	12.1
Operating Profit Growth (%)	19.1	11.7
Net Profit Growth (%)	13.3	9.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.29	0.93
ROE (%)	15.07	10.17
ROCE (%)	19.92	12.96
Cash Conversion Cycle (days)	100.6	62

Valuation & price assessment

Q.1 Stock return of Narmada Gelatines Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 11.6% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	11.6%	19.5%	10.6%	36.2%

Q.2 Valuation ratios of Narmada Gelatines Ltd vs historical?

The current P/E ratio of 10.52 is lower than its historical median of 13.34, 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	10.52	13.34	28.17
Price to Book	1.93	1.71	2.22
Price to Sales	1.25	1.07	1.93
EV to EBITDA	7.45	8.53	14.20

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Check Before You Invest : Narmada Gelatines Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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