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Check Before You Invest : Aris International Ltd

BSE: 531677 NSE: ISIN: INE588E01026
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does Aris International Ltd belong to?
Aris International Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is Aris International Ltd a good quality company?
Aris International Ltd is a quality company, based on a 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 Aris International Ltd undervalued or overvalued?
Aris International Ltd appears Somewhat 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 410.4 -
Price to Book 78.91 15.71
Price to Sales 153.9 25.87
EV to EBITDA 411.48 21.83
Q.4 Is Aris International Ltd a good buy now?
Aris International 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.

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

Q.1 Revenue growth of Aris International Ltd?
Aris International Ltd revenue growth is -42.9% for FY-2025, which is below its 5-year CAGR of 1.03%, indicating slower growth.

Q.2 Gross Profit margin of Aris International Ltd?
Aris International Ltd Gross profit margin which is the profit after deduction of direct costs, is 22.2% for FY-2025, which is in line with its 5-year median of 22.2%, indicating stable margins.

Q.3 Operating Profit Margin of Aris International Ltd?
Aris International Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.8% for FY-2025, which is above its 5-year median of -62.06% indicating increasing margins.

Q.4 Net Profit Margin of Aris International Ltd?
Aris International Ltd Net Profit Margin is 22.17% for FY-2025, is in line with its 5-year median of 22.17%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 22.2 22.2
Operating Profit Margin (%) 13.8 -62.06
Net Profit Margin (%) 22.17 22.17

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Aris International Ltd?
Aris International Ltd Return on Asset is 5.57%, which is in line with its 5-year historical median of 5.57%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Aris International Ltd?
Aris International Ltd Return on capital employed is 5.75% for FY-2025, which is in line with its 5-year historical median of 5.75%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Cash conversion cycle of Aris International Ltd?
Aris International Ltd Cash conversion cycle is 435 days, above its 5-year historical median of 64 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

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

Q.8 Debt to Equity ratio of Aris International Ltd?
Aris International Ltd Debt-to-Equity ratio is 0.13, which is above the industry average of 0.01, indicating higher debt levels in the industry.

Q.9 Debt to cash flow from operations of Aris International Ltd?
Aris International Ltd Debt to cash flow from operations is -0.19, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Aris International Ltd?

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

Peer comparison (industry-wise, mcap)

E: How does Aris International Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Aris International Ltd vs industry peers?
Aris International Ltd revenue CAGR is 1.03%, compared to the industry median CAGR of 2.48%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -42.9 2.5
Gross Profit Growth (%) -69.2 18.3
Operating Profit Growth (%) 0 18
Net Profit Growth (%) -69.2 22
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.25 0.46
ROE (%) - 3.97
ROCE (%) 5.75 6.41
Cash Conversion Cycle (days) 434.74 36

Valuation & price assessment

Q.1 Stock return of Aris International Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 40.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
40.5% 97.3% 117% -11.4%
Q.2 Valuation ratios of Aris International Ltd vs historical?
The current P/E ratio of 410.4 is higher than its historical median of , 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 410.4 - 47.38
Price to Book 78.91 15.71 2.64
Price to Sales 153.9 25.87 4.79
EV to EBITDA 411.48 21.83 16.75

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