Multibase India Ltd

Multibase India Ltd maintains a strong liquidity position, with cash and equivalents amounting to INR 1,060,000,000, representing 73.4% of total assets. The company has no long-term debt and a debt-to-equity ratio of 0, indicating a conservative capital structure. The current ratio of 17.24 suggests a high ability to meet short-term obligations.

Profitability metrics show a return on equity (ROE) of 2.93% and a return on assets (ROA) of 2.73%. These figures are below the industry median for Commodity Chemicals, which typically sees ROE and ROA in the 5-7% range. The company's net income of INR 39,450,000 is supported by a gross profit margin of 39.3%, which is in line with the industry average.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic shifts and regulatory changes. The company's revenue of INR 146,507,000 is below the median for its industry cohort, which averages INR 250,000,000 in annual revenue.

Looking ahead, the company is expected to see a modest increase in revenue, with a projected growth rate of 1.5% for the current fiscal year. This growth is driven by stable demand in the industrial chemicals market and a focus on cost optimization. However, the company's capital expenditure of INR -19,176,000 indicates a reduction in investment, which may limit long-term growth potential.

Risk factors include low liquidity risk and low dilution potential, with no immediate filing-based flags detected. The company's conservative capital structure and strong cash position reduce financial risk. However, the lack of geographic diversification and reliance on a single product line increase operational risk.

Recent filings and transcripts indicate no material changes in the company's operations or strategic direction. The company continues to focus on maintaining profitability through cost control and operational efficiency.

Net income grew at a 21.5% CAGR over four years, demonstrating strong historical profitability expansion.

Operating and net margins are best-in-class compared to the commodity chemicals cohort median.

The company maintains zero long-term debt, resulting in a debt-to-equity ratio above the 75th percentile.

Operating income surged 87.3% year-over-year in FY2021, indicating significant recent operational leverage.

Cash conversion is above the cohort median, suggesting efficient translation of earnings into cash.

Return on equity is below the cohort median, indicating inefficient use of shareholder capital.

Revenue declined in FY2020 before recovering, showing volatility in top-line growth trajectory.

Capex to revenue ratio is below the cohort median, potentially signaling underinvestment in growth.

Revenue INR 135.3M, −21,1% YoY; Operating income +71,0% YoY.

• ▍Revenue INR 135.3M, −21,1% YoY
• ▍Operating income +71,0% YoY
• ▍Net income +38,1% YoY
• ▍Net margin 24.2%

Revenue INR 167.6M, −12,8% YoY; Operating income −33,4% YoY.

• ▍Revenue INR 167.6M, −12,8% YoY
• ▍Operating income −33,4% YoY
• ▍Net income −41,5% YoY
• ▍Net margin 13.7%

Revenue INR 159.5M, +8,9% YoY; Operating income +54,1% YoY.

• ▍Revenue INR 159.5M, +8,9% YoY
• ▍Operating income +54,1% YoY
• ▍Net income +3,1% YoY
• ▍Net margin 25.5%

Revenue INR 171.5M; Operating income INR 20.9M.

• ▍Revenue INR 171.5M
• ▍Operating income INR 20.9M
• ▍Net margin 13.9%

Revenue INR 184.2M; Operating income INR 37.6M.

• ▍Revenue INR 184.2M
• ▍Operating income INR 37.6M
• ▍Net margin 23.2%

Revenue INR 192.3M; Operating income INR 33.3M.

• ▍Revenue INR 192.3M
• ▍Operating income INR 33.3M
• ▍Net margin 20.4%

Revenue INR 146.5M; Operating income INR 29.1M.

• ▍Revenue INR 146.5M
• ▍Operating income INR 29.1M
• ▍Net margin 26.9%

Revenue INR 707.5M, +9,3% YoY; Operating income +87,3% YoY.

• ▍Revenue INR 707.5M, +9,3% YoY
• ▍Operating income +87,3% YoY
• ▍Net income +31,4% YoY
• ▍Free cash flow −838,8% YoY
• ▍Net margin 20.7%

Revenue INR 647.4M, −10,4% YoY; Operating income −23,3% YoY.

• ▍Revenue INR 647.4M, −10,4% YoY
• ▍Operating income −23,3% YoY
• ▍Net income +13,9% YoY
• ▍Free cash flow −8,9% YoY
• ▍Net margin 17.2%

Revenue INR 722.2M, +15,6% YoY; Operating income +50,8% YoY.

• ▍Revenue INR 722.2M, +15,6% YoY
• ▍Operating income +50,8% YoY
• ▍Net income +54,4% YoY
• ▍Free cash flow +167,5% YoY
• ▍Net margin 13.6%

Revenue INR 624.8M, +16,9% YoY; Operating income +11,7% YoY.

• ▍Revenue INR 624.8M, +16,9% YoY
• ▍Operating income +11,7% YoY
• ▍Net income −5,6% YoY
• ▍Free cash flow −57,1% YoY
• ▍Net margin 10.1%

Revenue INR 534.5M; Operating income INR 57.4M.

• ▍Revenue INR 534.5M
• ▍Operating income INR 57.4M
• ▍Net margin 12.6%