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Check Before You Invest : Aarvi Encon Ltd

BSE: 0 NSE: AARVI ISIN: INE754X01016
  |   Sector:  Miscellaneous   |   Industry:  Professional Services

Snapshot

Q.1 Which industry/sub-sector does Aarvi Encon Ltd belong to?
Aarvi Encon Ltd belongs to the Miscellaneous sector, operating specifically within the Professional Services segment.
Q.2 Is Aarvi Encon Ltd a good quality company?
Aarvi Encon Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Aarvi Encon Ltd undervalued or overvalued?
Aarvi Encon Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Aarvi Encon Ltd a good buy now?
Aarvi Encon Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Aarvi Encon Ltd?
Aarvi Encon Ltd revenue growth is 22.9% for FY-2025 , which is above its 5 year CAGR of 19.4% , indicating faster growth.
Q.2 Gross Profit margin of Aarvi Encon Ltd?
Aarvi Encon Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.2% for FY-2025 , which is below its 5 year median of 4.3% , indicating decreasing margins.
Q.3 Operating Profit Margin of Aarvi Encon Ltd?
Aarvi Encon Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.38% for FY-2025 , which is below its 5 year median of 4.2% indicating decreasing margins.
Q.4 Net Profit Margin of Aarvi Encon Ltd?
Aarvi Encon Ltd Net Profit Margin is 1.67% for FY-2025 , is below with its 5 year median of 3.69%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 2.2 4.3
Operating Profit Margin 2.38 4.2
Net Profit Margin 1.67 3.69
Q.5 Return on Asset of Aarvi Encon Ltd?
Aarvi Encon Ltd Return on Asset is 4.53%, which is below its 5 year historical median of 8.33%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Aarvi Encon Ltd?
Aarvi Encon Ltd Return on equity is 7.47% for FY-2025 , which is below its historical median of 12.58%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Aarvi Encon Ltd?
Aarvi Encon Ltd Return on capital employed is 10.22% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Aarvi Encon Ltd?
Aarvi Encon Ltd Cash conversion cycle is 59 days, below its historical median of 66 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 2.72 2.58
ROE 7.47 12.58
ROCE 10.22 12.39
Cash Conversion Cycle 59 days 66 days
Q.9 Debt to Equity ratio of Aarvi Encon Ltd?
Aarvi Encon Ltd Debt-to-Equity ratio is 0.25 , which is above with the industry average of 0.15 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Aarvi Encon Ltd?
Aarvi Encon Ltd Debt to cash flow from operations is 6.97 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Aarvi Encon Ltd?
Promoters hold 73.53% of the Aarvi Encon Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Aarvi Encon Ltd vs industry peers?
Aarvi Encon Ltd revenue CAGR is 19.40% , compared to the industry median CAGR of 0% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 464.1 33.8
Gross Profit 10.2 3.9
Operating Profit 11 3.8
Net Profit 8 3
Operating Efficiency
Current Level Industry Median
Asset Turnover 2.72 1.39
ROE 7.47 12.58
ROCE 10.22 12.8
Cash Conversion Cycle (days) 59.3 53

Valuation & price assessment

Q.1 Stock return of Aarvi Encon Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 19.89% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 19.9% -1% 24.1%
Q.3 Valuation ratios of Aarvi Encon Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 17.23 14.73 51.09
Price to Book 1.69 1.89 2.52
Price to Sales 0.35 0.49 1.78
EV to EBITDA 12.79 11.08 16.71

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