MoneyWorks4Me

Check Before You Invest : Arham Technologies Ltd

BSE: 0 NSE: ARHAM ISIN: INE0L2Y01011
  |   Sector:  Consumer Durables   |   Industry:  Consumer Durables - Electronics

Snapshot

Q.1 Which industry/sub-sector does Arham Technologies Ltd belong to?
Arham Technologies Ltd belongs to the Consumer Durables sector, operating specifically within the Consumer Durables - Electronics segment.
Q.2 Is Arham Technologies Ltd a good quality company?
Arham Technologies 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 Arham Technologies Ltd undervalued or overvalued?
Arham Technologies Ltd appears Fair, as its key valuation ratios are in line with 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 57.08 39.07
Price to Book 4.75 6.76
Price to Sales 4.12 3.05
EV to EBITDA 33.78 22.98
Q.4 Is Arham Technologies Ltd a good buy now?
Arham Technologies 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 Arham Technologies Ltd?
Arham Technologies Ltd revenue growth is 56.9% for FY-2026, which is above its 5-year CAGR of 35.06%, indicating faster growth.

Q.2 Gross Profit margin of Arham Technologies Ltd?
Arham Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.7% for FY-2026, which is below its 5-year median of 12.5%, indicating decreasing margins.

Q.3 Operating Profit Margin of Arham Technologies Ltd?
Arham Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.91% for FY-2026, which is in line with its 5-year median of 13.36% indicating stable margins.

Q.4 Net Profit Margin of Arham Technologies Ltd?
Arham Technologies Ltd Net Profit Margin is 7.22% for FY-2026, is below its 5-year median of 8.28%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 10.7 12.5
Operating Profit Margin (%) 12.91 13.36
Net Profit Margin (%) 7.22 8.28

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Arham Technologies Ltd?
Arham Technologies Ltd Return on Asset is 7.18%, which is below its 5-year historical median of 12%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Arham Technologies Ltd?
Arham Technologies Ltd Return on capital employed is 14.01% for FY-2026, which is below its 5-year historical median of 22.12%. 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 Arham Technologies Ltd?
Arham Technologies Ltd Return on equity is 12.46% for FY-2026, which is below its 5-year historical median of 22.67%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Arham Technologies Ltd?
Arham Technologies Ltd Cash conversion cycle is 170 days, in line with its 5-year historical median of 170 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.99 1.35
ROE (%) 12.46 22.67
ROCE (%) 14.01 22.12
Cash Conversion Cycle 170 days 170 days

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

Q.9 Debt to Equity ratio of Arham Technologies Ltd?
Arham Technologies Ltd Debt-to-Equity ratio is 0.29, which is above the industry average of 0.23, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Arham Technologies Ltd?
Arham Technologies Ltd Debt to cash flow from operations is -1.01, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Arham Technologies Ltd?

Q.1 Promoter shareholding and pledge status of Arham Technologies Ltd?
Promoters hold 56.16% of the Arham Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Arham Technologies Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Arham Technologies Ltd vs industry peers?
Arham Technologies Ltd revenue CAGR is 35.06%, compared to the industry median CAGR of 7.75%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 56.9 7.8
Gross Profit Growth (%) 22.2 21.4
Operating Profit Growth (%) 18.2 9.9
Net Profit Growth (%) 16.7 17.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.99 1.13
ROE (%) 12.46 4.38
ROCE (%) 14.01 10
Cash Conversion Cycle (days) 169.95 49

Valuation & price assessment

Q.1 Stock return of Arham Technologies Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of 21.41% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - 21.4% 160.2%
Q.2 Valuation ratios of Arham Technologies Ltd vs historical?
The current P/E ratio of 57.08 is higher than its historical median of 39.07, 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 57.08 39.07 45.73
Price to Book 4.75 6.76 3.46
Price to Sales 4.12 3.05 1.15
EV to EBITDA 33.78 22.98 19.82

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