Narmada Gelatines Reports Strong Financial Performance Amidst Long-Term Growth Challenges

Narmada Gelatines, a microcap player in the specialty chemicals industry, has recently undergone an evaluation adjustment reflecting its current financial standing. The company reported notable financial performance in Q4 FY24-25, with net sales reaching Rs 49.77 crore, marking a significant achievement. Additionally, the PBDIT for the quarter was recorded at Rs 7.48 crore, showcasing the company's operational efficiency.
The operating profit to net sales ratio stood at 15.03%, indicating a solid relationship between revenue generation and profitability. With a return on capital employed (ROCE) of 16.9, Narmada Gelatines presents an attractive valuation, supported by a 1.7 enterprise value to capital employed ratio. This positions the stock favorably when compared to its peers' historical valuations.

Despite a return of -8.70% over the past year, the company has experienced a profit increase of 13.9%, with a PEG ratio of 1, suggesting a balanced growth perspective. However, it is important to note that net sales have grown at an annual rate of 7.07%, and operating profit at 11.87% over the last five years, indicating potential challenges in long-term growth.

Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.