Check Before You Invest : SPEB Adhesives Ltd

Q: Which industry/sub-sector does SPEB Adhesives Ltd belong to?

SPEB Adhesives Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q: Is SPEB Adhesives Ltd a good quality company?

SPEB Adhesives Ltd is a weak quality company, based on a inconsistent 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 SPEB Adhesives Ltd undervalued or overvalued?

SPEB Adhesives 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: 29.02, Historic Median: 20.61. Price to Book, Current: 5.66, Historic Median: 3.97. Price to Sales, Current: 3.82, Historic Median: 2.72. EV to EBITDA, Current: 18.19, Historic Median: 12.42

Q: Is SPEB Adhesives Ltd a good buy now?

SPEB Adhesives 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 SPEB Adhesives Ltd?

SPEB Adhesives Ltd revenue growth is 5.1% for FY-2025, which is below its 3-year CAGR of 17.08%, indicating slower growth.

Q: Gross Profit margin of SPEB Adhesives Ltd?

SPEB Adhesives Ltd Gross profit margin which is the profit after deduction of direct costs, is 19.1% for FY-2025, which is above its 3-year median of 16.7%, indicating increasing margins.

Q: Operating Profit Margin of SPEB Adhesives Ltd?

SPEB Adhesives Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.89% for FY-2025, which is above its 3-year median of 15.36% indicating increasing margins.

Q: Net Profit Margin of SPEB Adhesives Ltd?

SPEB Adhesives Ltd Net Profit Margin is 13.16% for FY-2025, is above its 3-year median of 11.58%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 19.1, Historic Median: 16.7. Operating Profit Margin (%), Current: 17.89, Historic Median: 15.36. Net Profit Margin (%), Current: 13.16, Historic Median: 11.58

Q: Return on Asset of SPEB Adhesives Ltd?

SPEB Adhesives Ltd Return on Asset is 24.58%, which is in line with its 3-year historical median of 24.33%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of SPEB Adhesives Ltd?

SPEB Adhesives Ltd Return on capital employed is 36.37% for FY-2025, which is above its 3-year historical median of 34.23%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : SPEB Adhesives Ltd

Snapshot

Q.1 Which industry/sub-sector does SPEB Adhesives Ltd belong to?

SPEB Adhesives Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is SPEB Adhesives Ltd a good quality company?

SPEB Adhesives Ltd is a weak quality company, based on a inconsistent 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 SPEB Adhesives Ltd undervalued or overvalued?

SPEB Adhesives 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	29.02	20.61
Price to Book	5.66	3.97
Price to Sales	3.82	2.72
EV to EBITDA	18.19	12.42

Q.4 Is SPEB Adhesives Ltd a good buy now?

SPEB Adhesives 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 SPEB Adhesives Ltd?

SPEB Adhesives Ltd revenue growth is 5.1% for FY-2025, which is below its 3-year CAGR of 17.08%, indicating slower growth.

Q.2 Gross Profit margin of SPEB Adhesives Ltd?

SPEB Adhesives Ltd Gross profit margin which is the profit after deduction of direct costs, is 19.1% for FY-2025, which is above its 3-year median of 16.7%, indicating increasing margins.

Q.3 Operating Profit Margin of SPEB Adhesives Ltd?

SPEB Adhesives Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.89% for FY-2025, which is above its 3-year median of 15.36% indicating increasing margins.

Q.4 Net Profit Margin of SPEB Adhesives Ltd?

SPEB Adhesives Ltd Net Profit Margin is 13.16% for FY-2025, is above its 3-year median of 11.58%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin (%)	19.1	16.7
Operating Profit Margin (%)	17.89	15.36
Net Profit Margin (%)	13.16	11.58

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of SPEB Adhesives Ltd?

SPEB Adhesives Ltd Return on Asset is 24.58%, which is in line with its 3-year historical median of 24.33%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of SPEB Adhesives Ltd?

SPEB Adhesives Ltd Return on capital employed is 36.37% for FY-2025, which is above its 3-year historical median of 34.23%. 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 SPEB Adhesives Ltd?

SPEB Adhesives Ltd Return on equity is 26.3% for FY-2025, which is in line with its 3-year historical median of 25.37%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of SPEB Adhesives Ltd?

SPEB Adhesives Ltd Cash conversion cycle is 67 days, below its 3-year historical median of 82 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover (x)	1.87	1.99
ROE (%)	26.3	25.37
ROCE (%)	36.37	34.23
Cash Conversion Cycle	67 days	82 days

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

Q.9 Debt to Equity ratio of SPEB Adhesives Ltd?

SPEB Adhesives Ltd Debt-to-Equity ratio is 0.00, 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 SPEB Adhesives Ltd?

SPEB Adhesives Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of SPEB Adhesives Ltd?

Q.1 Promoter shareholding and pledge status of SPEB Adhesives Ltd?

Promoters hold 73.18% of the SPEB Adhesives Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does SPEB Adhesives Ltd performance compare with that of its Peers?

Q.1 Revenue growth of SPEB Adhesives Ltd vs industry peers?

SPEB Adhesives Ltd revenue CAGR is 17.08%, compared to the industry median CAGR of 4.7%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth (%)	5.1	4.7
Gross Profit Growth (%)	28.6	5.8
Operating Profit Growth (%)	14.3	3.1
Net Profit Growth (%)	20	1.4

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover (x)	1.87	0.92
ROE (%)	26.3	8.03
ROCE (%)	36.37	10.27
Cash Conversion Cycle (days)	66.78	63

Valuation & price assessment

Q.1 Stock return of SPEB Adhesives 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 SPEB Adhesives Ltd vs historical?

The current P/E ratio of 29.02 is higher than its historical median of 20.61, indicating that the stock is trading above 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	29.02	20.61	32.16
Price to Book	5.66	3.97	2.28
Price to Sales	3.82	2.72	1.89
EV to EBITDA	18.19	12.42	15.86

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Check Before You Invest : SPEB Adhesives 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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