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Check Before You Invest : Admach Systems Ltd

BSE: 544669 NSE: ISIN: INE0XLO01010
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does Admach Systems Ltd belong to?
Admach Systems Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is Admach Systems Ltd a good quality company?
Admach Systems 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 Admach Systems Ltd undervalued or overvalued?
Admach Systems 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 18.28 23.82
Price to Book 2.83 2.26
Price to Sales 2.66 2.73
EV to EBITDA 14.05 14.77
Q.4 Is Admach Systems Ltd a good buy now?
Admach Systems 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

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.

Q.1 Gross Profit margin of Admach Systems Ltd?
Admach Systems Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.4% for FY-2025, which is in line with its 3-year median of 16.4%, indicating stable margins.

Q.2 Operating Profit Margin of Admach Systems Ltd?
Admach Systems Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.42% for FY-2025, which is in line with its 3-year median of 19.42% indicating stable margins.

Q.3 Net Profit Margin of Admach Systems Ltd?
Admach Systems Ltd Net Profit Margin is 11.43% for FY-2025, is in line with its 3-year median of 11.43%, indicating stable margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 16.4 16.4
Operating Profit Margin (%) 19.42 19.42
Net Profit Margin (%) 11.43 11.43

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Admach Systems Ltd?
Admach Systems Ltd Return on Asset is 13.32%, which is above its 3-year historical median of 12.07%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Admach Systems Ltd?
Admach Systems Ltd Return on capital employed is 36.47% for FY-2025, which is in line with its 3-year historical median of 36.47%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Admach Systems Ltd?
Admach Systems Ltd Return on equity is 43.94% for FY-2025, which is in line with its 3-year historical median of 43.94%, indicating the business is making similar use of its shareholders capital.

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

Q.7 Debt to Equity ratio of Admach Systems Ltd?
Admach Systems Ltd Debt-to-Equity ratio is 0.48, which is above the industry average of 0.18, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Admach Systems Ltd?
Admach Systems Ltd Debt to cash flow from operations is 23.52, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Admach Systems Ltd?

Q.1 Promoter shareholding and pledge status of Admach Systems Ltd?
Promoters hold 52.95% of the Admach Systems Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Admach Systems Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Admach Systems Ltd vs industry peers?
Admach Systems Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 12.49%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) - 12.5
Gross Profit Growth (%) 80 26
Operating Profit Growth (%) 66.7 26
Net Profit Growth (%) 100 26.6
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.17 0.92
ROE (%) 43.94 16.45
ROCE (%) 36.47 19.55
Cash Conversion Cycle (days) 146.68 97

Valuation & price assessment

Q.1 Stock return of Admach Systems 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 Admach Systems Ltd vs historical?
The current P/E ratio of 18.28 is lower than its historical median of 23.82, indicating that the stock is trading below 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 18.28 23.82 32.30
Price to Book 2.83 2.26 3.57
Price to Sales 2.66 2.73 3.21
EV to EBITDA 14.05 14.77 16.34

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