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Check Before You Invest : Snehaa Organics Ltd

BSE: 0 NSE: SNEHAA ISIN: INE1OIC01018
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Chemicals

Snapshot

Q.1 Which industry/sub-sector does Snehaa Organics Ltd belong to?
Snehaa Organics Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.
Q.2 Is Snehaa Organics Ltd a good quality company?
Snehaa Organics 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 Snehaa Organics Ltd undervalued or overvalued?
Snehaa Organics 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 3-year
Historic Median
Price to Earnings 6.35 7.29
Price to Book 2.67 2.86
Price to Sales 1.78 2.04
EV to EBITDA 4.8 5.39
Q.4 Is Snehaa Organics Ltd a good buy now?
Snehaa Organics 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 Snehaa Organics Ltd?
Snehaa Organics Ltd Gross profit margin which is the profit after deduction of direct costs, is 42.1% for FY-2025, which is above its 3-year median of 31%, indicating increasing margins.

Q.2 Operating Profit Margin of Snehaa Organics Ltd?
Snehaa Organics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 43.82% for FY-2025, which is above its 3-year median of 30.55% indicating increasing margins.

Q.3 Net Profit Margin of Snehaa Organics Ltd?
Snehaa Organics Ltd Net Profit Margin is 27.98% for FY-2025, is above its 3-year median of 20.34%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 42.1 31
Operating Profit Margin (%) 43.82 30.55
Net Profit Margin (%) 27.98 20.34

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Snehaa Organics Ltd?
Snehaa Organics Ltd Return on Asset is 31.12%, which is above its 3-year historical median of 26.24%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Snehaa Organics Ltd?
Snehaa Organics Ltd Return on capital employed is 58.76% for FY-2025, which is above its 3-year historical median of 54.65%. 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 Snehaa Organics Ltd?
Snehaa Organics Ltd Return on equity is 66.07% for FY-2025, which is in line with its 3-year historical median of 66.07%, 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 Snehaa Organics Ltd?
Snehaa Organics Ltd Debt-to-Equity ratio is 0.61, which is above the industry average of 0.13, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Snehaa Organics Ltd?
Snehaa Organics Ltd Debt to cash flow from operations is 3.01, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Snehaa Organics Ltd?

Q.1 Promoter shareholding and pledge status of Snehaa Organics Ltd?
Promoters hold 73.68% of the Snehaa Organics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Snehaa Organics Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Snehaa Organics Ltd vs industry peers?
Snehaa Organics Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 4.7%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) - 4.7
Gross Profit Growth (%) 89.5 5.8
Operating Profit Growth (%) 97.1 3.1
Net Profit Growth (%) 100.6 1.4
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.11 0.92
ROE (%) 66.07 8.03
ROCE (%) 58.76 10.27
Cash Conversion Cycle (days) 75.22 63

Valuation & price assessment

Q.1 Stock return of Snehaa Organics 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 Snehaa Organics Ltd vs historical?
The current P/E ratio of 6.35 is lower than its historical median of 7.29, indicating that the stock is trading below 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 6.35 7.29 32.16
Price to Book 2.67 2.86 2.28
Price to Sales 1.78 2.04 1.89
EV to EBITDA 4.8 5.39 15.86

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