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Check Before You Invest : Add-Shop E-Retail Ltd

BSE: 541865 NSE: ISIN: INE01B501018
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Add-Shop E-Retail Ltd belong to?
Add-Shop E-Retail Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Add-Shop E-Retail Ltd a good quality company?
Add-Shop E-Retail 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 Add-Shop E-Retail Ltd undervalued or overvalued?
Add-Shop E-Retail Ltd appears Somewhat Undervalued, as its key valuation ratios are lower 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 19.38 7.90
Price to Book 0.18 0.91
Price to Sales 0.14 0.50
EV to EBITDA 10.25 7.22
Q.4 Is Add-Shop E-Retail Ltd a good buy now?
Add-Shop E-Retail 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 Add-Shop E-Retail Ltd?
Add-Shop E-Retail Ltd revenue growth is -23.6% for FY-2025, which is below its 5-year CAGR of 32.95%, indicating slower growth.

Q.2 Gross Profit margin of Add-Shop E-Retail Ltd?
Add-Shop E-Retail Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.3% for FY-2025, which is below its 5-year median of 13.4%, indicating decreasing margins.

Q.3 Operating Profit Margin of Add-Shop E-Retail Ltd?
Add-Shop E-Retail Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.11% for FY-2025, which is below its 5-year median of 14.55% indicating decreasing margins.

Q.4 Net Profit Margin of Add-Shop E-Retail Ltd?
Add-Shop E-Retail Ltd Net Profit Margin is 2.14% for FY-2025, is below its 5-year median of 9.59%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 3.3 13.4
Operating Profit Margin (%) 4.11 14.55
Net Profit Margin (%) 2.14 9.59

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Add-Shop E-Retail Ltd?
Add-Shop E-Retail Ltd Return on Asset is 2.36%, which is below its 5-year historical median of 19.02%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Add-Shop E-Retail Ltd?
Add-Shop E-Retail Ltd Return on capital employed is 4.2% for FY-2025, which is below its 5-year historical median of 37.84%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Add-Shop E-Retail Ltd?
Add-Shop E-Retail Ltd Return on equity is 2.98% for FY-2025, which is below its 5-year historical median of 26.2%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Add-Shop E-Retail Ltd?
Add-Shop E-Retail Ltd Cash conversion cycle is 277 days, above its 5-year historical median of 106 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) 1.1 1.98
ROE (%) 2.98 26.2
ROCE (%) 4.2 37.84
Cash Conversion Cycle 277 days 106 days

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

Q.9 Debt to Equity ratio of Add-Shop E-Retail Ltd?
Add-Shop E-Retail Ltd Debt-to-Equity ratio is 0.34, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Add-Shop E-Retail Ltd?
Add-Shop E-Retail Ltd Debt to cash flow from operations is -3.78, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Add-Shop E-Retail Ltd?

Q.1 Promoter shareholding and pledge status of Add-Shop E-Retail Ltd?
Promoters hold 27.20% of the Add-Shop E-Retail Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Add-Shop E-Retail Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Add-Shop E-Retail Ltd vs industry peers?
Add-Shop E-Retail Ltd revenue CAGR is 32.95%, 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 (%) -23.6 -
Gross Profit Growth (%) -22.8 17.9
Operating Profit Growth (%) -17.1 16.4
Net Profit Growth (%) 5.1 17.3
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.1 0.52
ROE (%) 2.98 2.05
ROCE (%) 4.2 3.6
Cash Conversion Cycle (days) 276.81 46

Valuation & price assessment

Q.1 Stock return of Add-Shop E-Retail Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of -21.72% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- -21.7% -44.4% -29.6%
Q.2 Valuation ratios of Add-Shop E-Retail Ltd vs historical?
The current P/E ratio of 19.38 is higher than its historical median of 7.90, 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 19.38 7.90 33.62
Price to Book 0.18 0.91 1.57
Price to Sales 0.14 0.50 2.21
EV to EBITDA 10.25 7.22 14.09

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

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