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Check Before You Invest : Anlon Technology Solution Ltd

BSE: 0 NSE: ANLON ISIN: INE0LR101013
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering

Snapshot

Q.1 Which industry/sub-sector does Anlon Technology Solution Ltd belong to?
Anlon Technology Solution Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering segment.
Q.2 Is Anlon Technology Solution Ltd a good quality company?
Anlon Technology Solution Ltd is a average quality company, based on a somewhat consistent 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 Anlon Technology Solution Ltd undervalued or overvalued?
Anlon Technology Solution 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 5-year
Historic Median
Price to Earnings 54.26 38.30
Price to Book 5.99 4.48
Price to Sales 7.01 4.96
EV to EBITDA 34.74 23.87
Q.4 Is Anlon Technology Solution Ltd a good buy now?
Anlon Technology Solution Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Anlon Technology Solution Ltd?
Anlon Technology Solution Ltd revenue growth is 43.4% for FY-2025, which is above its 5-year CAGR of 29.69%, indicating faster growth.

Q.2 Gross Profit margin of Anlon Technology Solution Ltd?
Anlon Technology Solution Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.5% for FY-2025, which is in line with its 5-year median of 18.1%, indicating stable margins.

Q.3 Operating Profit Margin of Anlon Technology Solution Ltd?
Anlon Technology Solution Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.2% for FY-2025, which is in line with its 5-year median of 19.13% indicating stable margins.

Q.4 Net Profit Margin of Anlon Technology Solution Ltd?
Anlon Technology Solution Ltd Net Profit Margin is 12.92% for FY-2025, is in line with its 5-year median of 12.9%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 18.5 18.1
Operating Profit Margin (%) 19.2 19.13
Net Profit Margin (%) 12.92 12.9

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Anlon Technology Solution Ltd?
Anlon Technology Solution Ltd Return on Asset is 10.38%, which is below its 5-year historical median of 11.61%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Anlon Technology Solution Ltd?
Anlon Technology Solution Ltd Return on capital employed is 19.35% for FY-2025, which is below its 5-year historical median of 37.61%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Anlon Technology Solution Ltd?
Anlon Technology Solution Ltd Return on equity is 14.65% for FY-2025, which is below its 5-year historical median of 29.44%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Anlon Technology Solution Ltd?
Anlon Technology Solution Ltd Cash conversion cycle is 127 days, above its 5-year historical median of 28 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 (x) 0.8 1.06
ROE (%) 14.65 29.44
ROCE (%) 19.35 37.61
Cash Conversion Cycle 127 days 28 days

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

Q.9 Debt to Equity ratio of Anlon Technology Solution Ltd?
Anlon Technology Solution Ltd Debt-to-Equity ratio is 0.13, which is lower the industry average of 0.27, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Anlon Technology Solution Ltd?
Anlon Technology Solution Ltd Debt to cash flow from operations is -0.47, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Anlon Technology Solution Ltd?

Q.1 Promoter shareholding and pledge status of Anlon Technology Solution Ltd?
Promoters hold 62.06% of the Anlon Technology Solution Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Anlon Technology Solution Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Anlon Technology Solution Ltd vs industry peers?
Anlon Technology Solution Ltd revenue CAGR is 29.69%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 43.4 -
Gross Profit Growth (%) 50 16.7
Operating Profit Growth (%) 66.7 16.1
Net Profit Growth (%) 20 26.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.8 0.6
ROE (%) 14.65 6.11
ROCE (%) 19.35 10.15
Cash Conversion Cycle (days) 126.85 79

Valuation & price assessment

Q.1 Stock return of Anlon Technology Solution Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of 52.45% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - 52.5% 65.6%
Q.2 Valuation ratios of Anlon Technology Solution Ltd vs historical?
The current P/E ratio of 54.26 is higher than its historical median of 38.30, indicating that the stock is trading above its historical average valuation.
Q.3 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 54.26 38.30 29.42
Price to Book 5.99 4.48 2.38
Price to Sales 7.01 4.96 2.22
EV to EBITDA 34.74 23.87 15.76

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