Check Before You Invest : Adroit Infotech Ltd

Snapshot

Q.1 Which industry/sub-sector does Adroit Infotech Ltd belong to?

Adroit Infotech Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Adroit Infotech Ltd a good quality company?

Adroit Infotech Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Adroit Infotech Ltd undervalued or overvalued?

Adroit Infotech Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Adroit Infotech Ltd a good buy now?

Adroit Infotech 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 Adroit Infotech Ltd?

Adroit Infotech Ltd revenue growth is 23.3% for FY-2025, which is above its 5-year CAGR of -2.03%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Adroit Infotech Ltd?

Adroit Infotech Ltd Return on capital employed is 3.85% for FY-2025, which is below its 5-year historical median of 7.31%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Adroit Infotech Ltd?

Adroit Infotech Ltd Return on Asset is 0.09%, which is below its 5-year historical median of 3.93%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Adroit Infotech Ltd?

Adroit Infotech Ltd Return on equity is 0.11% for FY-2025, which is below its 5-year historical median of 9.35%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Adroit Infotech Ltd?

Adroit Infotech Ltd Cash conversion cycle is 276 days, above its 5-year historical median of 185 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.11	0.23
ROE	0.11	9.35
ROCE	3.85	7.31
Cash Conversion Cycle	276 days	185 days

Q.6 Gross Profit margin of Adroit Infotech Ltd?

Adroit Infotech Ltd Gross profit margin which is the profit after deduction of direct costs, is -2% for FY-2025, which is below its 5-year median of 38.3%, indicating decreasing margins.

Q.7 Operating Profit Margin of Adroit Infotech Ltd?

Adroit Infotech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -16.33% for FY-2025, which is below its 5-year median of 31.75% indicating decreasing margins.

Q.8 Net Profit Margin of Adroit Infotech Ltd?

Adroit Infotech Ltd Net Profit Margin is 0.77% for FY-2025, is below with its 5-year median of 9.71%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-2	38.3
Operating Profit Margin	-16.33	31.75
Net Profit Margin	0.77	9.71

Q.9 Debt to Equity ratio of Adroit Infotech Ltd?

Adroit Infotech Ltd Debt-to-Equity ratio is 0.21, which is above with the industry average of 0.11, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Adroit Infotech Ltd?

Adroit Infotech Ltd Debt to cash flow from operations is -5.96, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Adroit Infotech Ltd?

Promoters hold 38.28% of the Adroit Infotech Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Adroit Infotech Ltd vs industry peers?

Adroit Infotech Ltd revenue CAGR is -2.03%, compared to the industry median CAGR of 10.86%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	23.3	10.9
Gross Profit Growth	-104.4	18.3
Operating Profit Growth	-154	18.8
Net Profit Growth	-97.1	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.11	0.5
ROE	0.11	5.83
ROCE	3.85	6.79
Cash Conversion Cycle (days)	276.2	47

Valuation & price assessment

Q.1 Stock return of Adroit Infotech Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -11.9% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-11.9%	9.5%	-16.1%	-9.3%

Q.3 Valuation ratios of Adroit Infotech Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	52.77	47.37
Price to Book	0.75	2.55	2.63
Price to Sales	9.82	8.62	4.79
EV to EBITDA	128.84	27.68	16.48

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