Check Before You Invest : Avance Technologies Ltd

Q: Which industry/sub-sector does Avance Technologies Ltd belong to?

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

Q: Is Avance Technologies Ltd a good quality company?

Avance Technologies Ltd is a weak quality company, based on a inconsistent 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: Is Avance Technologies Ltd undervalued or overvalued?

Avance Technologies 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. Price to Earnings, Current: 71.33, Historic Median: 72.81. Price to Book, Current: 0.51, Historic Median: 0.34. Price to Sales, Current: 2.16, Historic Median: 2.32. EV to EBITDA, Current: 73.72, Historic Median: 74.27

Q: Is Avance Technologies Ltd a good buy now?

Avance Technologies 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

Q: Revenue growth of Avance Technologies Ltd?

Avance Technologies Ltd revenue growth is -16.4% for FY-2025, which is below its 5-year CAGR of 186.52%, indicating slower growth.

Q: Gross Profit margin of Avance Technologies Ltd?

Avance Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.6% for FY-2025, which is above its 5-year median of 1.7%, indicating increasing margins.

Q: Operating Profit Margin of Avance Technologies Ltd?

Avance Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.79% for FY-2025, which is above its 5-year median of -0.44% indicating increasing margins.

Q: Net Profit Margin of Avance Technologies Ltd?

Avance Technologies Ltd Net Profit Margin is 3.58% for FY-2025, is above its 5-year median of 1.33%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 5.6, Historic Median: 1.7. Operating Profit Margin (%), Current: 1.79, Historic Median: -0.44. Net Profit Margin (%), Current: 3.58, Historic Median: 1.33

Q: Return on Asset of Avance Technologies Ltd?

Avance Technologies Ltd Return on Asset is 0.48%, which is above its 5-year historical median of 0.09%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Avance Technologies Ltd?

Avance Technologies Ltd Return on capital employed is 0.86% for FY-2025, which is above its 5-year historical median of 0.14%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Avance Technologies Ltd

BSE: 512149 NSE: ISIN: INE758A01072

| Sector: IT & ITES | Industry: IT - Software

Snapshot

Q.1 Which industry/sub-sector does Avance Technologies Ltd belong to?

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

Q.2 Is Avance Technologies Ltd a good quality company?

Avance Technologies Ltd is a weak quality company, based on a inconsistent 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 Avance Technologies Ltd undervalued or overvalued?

Avance Technologies 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	71.33	72.81
Price to Book	0.51	0.34
Price to Sales	2.16	2.32
EV to EBITDA	73.72	74.27

Q.4 Is Avance Technologies Ltd a good buy now?

Avance Technologies 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 Avance Technologies Ltd?

Avance Technologies Ltd revenue growth is -16.4% for FY-2025, which is below its 5-year CAGR of 186.52%, indicating slower growth.

Q.2 Gross Profit margin of Avance Technologies Ltd?

Avance Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.6% for FY-2025, which is above its 5-year median of 1.7%, indicating increasing margins.

Q.3 Operating Profit Margin of Avance Technologies Ltd?

Avance Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.79% for FY-2025, which is above its 5-year median of -0.44% indicating increasing margins.

Q.4 Net Profit Margin of Avance Technologies Ltd?

Avance Technologies Ltd Net Profit Margin is 3.58% for FY-2025, is above its 5-year median of 1.33%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	5.6	1.7
Operating Profit Margin (%)	1.79	-0.44
Net Profit Margin (%)	3.58	1.33

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Avance Technologies Ltd?

Avance Technologies Ltd Return on Asset is 0.48%, which is above its 5-year historical median of 0.09%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Avance Technologies Ltd?

Avance Technologies Ltd Return on capital employed is 0.86% for FY-2025, which is above its 5-year historical median of 0.14%. 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 Avance Technologies Ltd?

Avance Technologies Ltd Return on equity is 0.55% for FY-2025, which is above its 5-year historical median of 0.11%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Avance Technologies Ltd?

Avance Technologies Ltd Cash conversion cycle is -321 days, above its 5-year historical median of -578 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)	0.13	0.07
ROE (%)	0.55	0.11
ROCE (%)	0.86	0.14
Cash Conversion Cycle	-321 days	-578 days

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

Q.9 Debt to Equity ratio of Avance Technologies Ltd?

Avance Technologies Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.01, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Avance Technologies Ltd?

Avance Technologies Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

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

Q.1 Promoter shareholding and pledge status of Avance Technologies Ltd?

Promoters hold 0.68% of the Avance Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Avance Technologies Ltd vs industry peers?

Avance Technologies Ltd revenue CAGR is 186.52%, compared to the industry median CAGR of 2.48%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-16.4	2.5
Gross Profit Growth (%)	50	18.3
Operating Profit Growth (%)	0	18
Net Profit Growth (%)	-	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.13	0.46
ROE (%)	0.55	3.97
ROCE (%)	0.86	6.41
Cash Conversion Cycle (days)	-320.96	36

Valuation & price assessment

Q.1 Stock return of Avance Technologies Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 12.1% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	12.1%	81%	59.3%	14.1%

Q.2 Valuation ratios of Avance Technologies Ltd vs historical?

The current P/E ratio of 71.33 is in line with than its historical median of 72.81, indicating that the stock is trading near 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	71.33	72.81	47.38
Price to Book	0.51	0.34	2.64
Price to Sales	2.16	2.32	4.79
EV to EBITDA	73.72	74.27	16.75

Check more companies

1. Hexaware Tech.

2. Tata Technologies

3. Inventurus Knowledge

4. Tata Elxsi

5. KPIT Technologies

6. Fractal Analytics

7. Zensar Technologies

8. Intellect Design

9. Nazara Technologies

10. Cyient

Check trending companies

1. Bajaj Holdings & Investment Ltd.

2. K.P.R. Mill Ltd.

3. Aditya Birla Sun Life AMC Ltd.

4. Aditya Birla Capital Ltd.

5. Jupiter Wagons Ltd.

Check Before You Invest : Avance Technologies Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

About MoneyWorks4Me

Our Vision

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity – May 16, 2019 – Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.