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Check Before You Invest : ABM Knowledgeware Ltd

BSE: 531161 NSE: ISIN: INE850B01026
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does ABM Knowledgeware Ltd belong to?
ABM Knowledgeware Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is ABM Knowledgeware Ltd a good quality company?
ABM Knowledgeware Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is ABM Knowledgeware Ltd undervalued or overvalued?
ABM Knowledgeware Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is ABM Knowledgeware Ltd a good buy now?
ABM Knowledgeware 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

Q.1 Revenue growth of ABM Knowledgeware Ltd?
ABM Knowledgeware Ltd revenue growth is 2.8% for FY-2025 , which is below its 5 year CAGR of 6.1% , indicating slower growth.
Q.2 Gross Profit margin of ABM Knowledgeware Ltd?
ABM Knowledgeware Ltd Gross profit margin which is the profit after deduction of direct costs, is 21.2% for FY-2025 , which is below its 5 year median of 21.8% , indicating decreasing margins.
Q.3 Operating Profit Margin of ABM Knowledgeware Ltd?
ABM Knowledgeware Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.97% for FY-2025 , which is below its 5 year median of 20.71% indicating decreasing margins.
Q.4 Net Profit Margin of ABM Knowledgeware Ltd?
ABM Knowledgeware Ltd Net Profit Margin is 19.3% for FY-2025 , is in line with with its 5 year median of 19.3%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 21.2 21.8
Operating Profit Margin 15.97 20.71
Net Profit Margin 19.3 19.3
Q.5 Return on Asset of ABM Knowledgeware Ltd?
ABM Knowledgeware Ltd Return on Asset is 5.89(x), which is below its 5 year historical median of 6(x), indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of ABM Knowledgeware Ltd?
ABM Knowledgeware Ltd Return on equity is 6.83% for FY-2025 , which is below its historical median of 6.89%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of ABM Knowledgeware Ltd?
ABM Knowledgeware Ltd Return on capital employed is 8.67% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of ABM Knowledgeware Ltd?
ABM Knowledgeware Ltd Cash conversion cycle is 157 , above its historical median of 137 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.37 0.37
ROE 6.83 6.89
ROCE 8.67 8.88
Cash Conversion Cycle 157 137
Q.9 Debt to Equity ratio of ABM Knowledgeware Ltd?
ABM Knowledgeware Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.01 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of ABM Knowledgeware Ltd?
ABM Knowledgeware Ltd Debt to cash flow from operations is 0 , which is at a healthy level, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of ABM Knowledgeware Ltd?
Promoters hold 66.92% of the ABM Knowledgeware Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of ABM Knowledgeware Ltd vs industry peers?
ABM Knowledgeware Ltd revenue CAGR is 6.05% , compared to the industry median CAGR of 2.48% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 80.9 23.6
Gross Profit 17.2 1.9
Operating Profit 13 1.2
Net Profit 16 0.8
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.37 0.45
ROE 6.83 4.09
ROCE 8.67 6.4
Cash Conversion Cycle 157.47 36

Valuation & price assessment

Q.1 Stock return of ABM Knowledgeware Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 7.7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 7.7% 16.4% 43.5% 32.1%
Q.3 Valuation ratios of ABM Knowledgeware 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 35.71 9.56 22.96
Price to Book 2.08 1.07 2.61
Price to Sales 5.74 2.87 4.40
EV to EBITDA 24.12 6.89 17.20

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