Check Before You Invest : SH Kelkar And Company Ltd

Q: Which industry/sub-sector does SH Kelkar And Company Ltd belong to?

SH Kelkar And Company Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q: Is SH Kelkar And Company Ltd a good quality company?

SH Kelkar And Company 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 SH Kelkar And Company Ltd undervalued or overvalued?

SH Kelkar And Company Ltd appears Undervalued, as its key valuation ratios are lower 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: 12.47, Historic Median: 21.78. Price to Book, Current: 1.55, Historic Median: 2.06. Price to Sales, Current: 0.93, Historic Median: 1.32. EV to EBITDA, Current: 10.92, Historic Median: 10.62

Q: Is SH Kelkar And Company Ltd a good buy now?

SH Kelkar And Company Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of SH Kelkar And Company Ltd?

SH Kelkar And Company Ltd revenue growth is 15.4% for FY-2025, which is above its 5-year CAGR of 13.77%, indicating faster growth.

Q: Gross Profit margin of SH Kelkar And Company Ltd?

SH Kelkar And Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.7% for FY-2025, which is below its 5-year median of 13.7%, indicating decreasing margins.

Q: Operating Profit Margin of SH Kelkar And Company Ltd?

SH Kelkar And Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.24% for FY-2025, which is in line with its 5-year median of 14.24% indicating stable margins.

Q: Net Profit Margin of SH Kelkar And Company Ltd?

SH Kelkar And Company Ltd Net Profit Margin is 3.49% for FY-2025, is below its 5-year median of 6.73%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 12.7, Historic Median: 13.7. Operating Profit Margin (%), Current: 14.24, Historic Median: 14.24. Net Profit Margin (%), Current: 3.49, Historic Median: 6.73

Q: Return on Asset of SH Kelkar And Company Ltd?

SH Kelkar And Company Ltd Return on Asset is 2.94%, which is below its 5-year historical median of 5.4%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of SH Kelkar And Company Ltd?

SH Kelkar And Company Ltd Return on capital employed is 8.45% for FY-2025, which is below its 5-year historical median of 9.48%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : SH Kelkar And Company Ltd

Snapshot

Q.1 Which industry/sub-sector does SH Kelkar And Company Ltd belong to?

SH Kelkar And Company Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is SH Kelkar And Company Ltd a good quality company?

SH Kelkar And Company 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 SH Kelkar And Company Ltd undervalued or overvalued?

SH Kelkar And Company Ltd appears Undervalued, as its key valuation ratios are lower 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	12.47	21.78
Price to Book	1.55	2.06
Price to Sales	0.93	1.32
EV to EBITDA	10.92	10.62

Q.4 Is SH Kelkar And Company Ltd a good buy now?

SH Kelkar And Company Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 SH Kelkar And Company Ltd?

SH Kelkar And Company Ltd revenue growth is 15.4% for FY-2025, which is above its 5-year CAGR of 13.77%, indicating faster growth.

Q.2 Gross Profit margin of SH Kelkar And Company Ltd?

SH Kelkar And Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.7% for FY-2025, which is below its 5-year median of 13.7%, indicating decreasing margins.

Q.3 Operating Profit Margin of SH Kelkar And Company Ltd?

SH Kelkar And Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.24% for FY-2025, which is in line with its 5-year median of 14.24% indicating stable margins.

Q.4 Net Profit Margin of SH Kelkar And Company Ltd?

SH Kelkar And Company Ltd Net Profit Margin is 3.49% for FY-2025, is below its 5-year median of 6.73%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	12.7	13.7
Operating Profit Margin (%)	14.24	14.24
Net Profit Margin (%)	3.49	6.73

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of SH Kelkar And Company Ltd?

SH Kelkar And Company Ltd Return on Asset is 2.94%, which is below its 5-year historical median of 5.4%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of SH Kelkar And Company Ltd?

SH Kelkar And Company Ltd Return on capital employed is 8.45% for FY-2025, which is below its 5-year historical median of 9.48%. 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 SH Kelkar And Company Ltd?

SH Kelkar And Company Ltd Return on equity is 5.96% for FY-2025, which is below its 5-year historical median of 10.87%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of SH Kelkar And Company Ltd?

SH Kelkar And Company Ltd Cash conversion cycle is 127 days, in line with its 5-year historical median of 127 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)	0.85	0.8
ROE (%)	5.96	10.87
ROCE (%)	8.45	9.48
Cash Conversion Cycle	127 days	127 days

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

Q.9 Debt to Equity ratio of SH Kelkar And Company Ltd?

SH Kelkar And Company Ltd Debt-to-Equity ratio is 0.60, which is above the industry average of 0.13, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of SH Kelkar And Company Ltd?

SH Kelkar And Company Ltd Debt to cash flow from operations is 48.87, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of SH Kelkar And Company Ltd?

Q.1 Promoter shareholding and pledge status of SH Kelkar And Company Ltd?

Promoters hold 54.87% of the SH Kelkar And Company Ltd, with 8.30% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does SH Kelkar And Company Ltd performance compare with that of its Peers?

Q.1 Revenue growth of SH Kelkar And Company Ltd vs industry peers?

SH Kelkar And Company Ltd revenue CAGR is 13.77%, compared to the industry median CAGR of 7.53%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	15.4	7.5
Gross Profit Growth (%)	0.7	12.1
Operating Profit Growth (%)	-2	11.7
Net Profit Growth (%)	-40.3	9.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.85	0.93
ROE (%)	5.96	10.17
ROCE (%)	8.45	12.96
Cash Conversion Cycle (days)	126.58	62

Valuation & price assessment

Q.1 Stock return of SH Kelkar And Company Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -3.9% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-3.9%	0.2%	12.2%	-20.2%

Q.2 Valuation ratios of SH Kelkar And Company Ltd vs historical?

The current P/E ratio of 12.47 is lower than its historical median of 21.78, 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	12.47	21.78	28.17
Price to Book	1.55	2.06	2.22
Price to Sales	0.93	1.32	1.93
EV to EBITDA	10.92	10.62	14.20

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Check Before You Invest : SH Kelkar And Company 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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