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Check Before You Invest : Brady & Morris Engineering Company Ltd

BSE: 505690 NSE: ISIN: INE856A01017
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Construction Vehicles

Snapshot

Q.1 Which industry/sub-sector does Brady & Morris Engineering Company Ltd belong to?
Brady & Morris Engineering Company Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Construction Vehicles segment.
Q.2 Is Brady & Morris Engineering Company Ltd a good quality company?
Brady & Morris Engineering Company 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 Brady & Morris Engineering Company Ltd undervalued or overvalued?
Brady & Morris Engineering Company 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 9.72 10.34
Price to Book 4.01 4.69
Price to Sales 2.51 1.86
EV to EBITDA 23.4 13.08
Q.4 Is Brady & Morris Engineering Company Ltd a good buy now?
Brady & Morris Engineering Company 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 Brady & Morris Engineering Company Ltd?
Brady & Morris Engineering Company Ltd revenue growth is 20.1% for FY-2025, which is above its 5-year CAGR of 15.69%, indicating faster growth.

Q.2 Gross Profit margin of Brady & Morris Engineering Company Ltd?
Brady & Morris Engineering Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.3% for FY-2025, which is in line with its 5-year median of 12.3%, indicating stable margins.

Q.3 Operating Profit Margin of Brady & Morris Engineering Company Ltd?
Brady & Morris Engineering Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.72% for FY-2025, which is in line with its 5-year median of 12.22% indicating stable margins.

Q.4 Net Profit Margin of Brady & Morris Engineering Company Ltd?
Brady & Morris Engineering Company Ltd Net Profit Margin is 26.59% for FY-2025, is above its 5-year median of 8.37%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 12.3 12.3
Operating Profit Margin (%) 12.72 12.22
Net Profit Margin (%) 26.59 8.37

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Brady & Morris Engineering Company Ltd?
Brady & Morris Engineering Company Ltd Return on Asset is 35.3%, which is above its 5-year historical median of 11.92%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Brady & Morris Engineering Company Ltd?
Brady & Morris Engineering Company Ltd Return on capital employed is 69.82% for FY-2025, which is above its 5-year historical median of 26.3%. 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 Brady & Morris Engineering Company Ltd?
Brady & Morris Engineering Company Ltd Return on equity is 68% for FY-2025, which is above its 5-year historical median of 44%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Brady & Morris Engineering Company Ltd?
Brady & Morris Engineering Company Ltd Cash conversion cycle is 108 days, in line with its 5-year historical median of 110 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) 1.33 1.33
ROE (%) 68 44
ROCE (%) 69.82 26.3
Cash Conversion Cycle 108 days 110 days

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

Q.9 Debt to Equity ratio of Brady & Morris Engineering Company Ltd?
Brady & Morris Engineering Company Ltd Debt-to-Equity ratio is 0.19, which is lower the industry average of 0.28, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Brady & Morris Engineering Company Ltd?
Brady & Morris Engineering Company Ltd Debt to cash flow from operations is -9.01, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Brady & Morris Engineering Company Ltd?

Q.1 Promoter shareholding and pledge status of Brady & Morris Engineering Company Ltd?
Promoters hold 73.98% of the Brady & Morris Engineering Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Brady & Morris Engineering Company Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Brady & Morris Engineering Company Ltd vs industry peers?
Brady & Morris Engineering Company Ltd revenue CAGR is 15.69%, compared to the industry median CAGR of 10.87%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 20.1 10.9
Gross Profit Growth (%) -8.3 33.9
Operating Profit Growth (%) -8.3 40.3
Net Profit Growth (%) 200 50.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.33 0.75
ROE (%) 68 11.98
ROCE (%) 69.82 14.25
Cash Conversion Cycle (days) 107.64 110

Valuation & price assessment

Q.1 Stock return of Brady & Morris Engineering Company Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 32.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
32.5% 60.1% 51.4% -33.5%
Q.2 Valuation ratios of Brady & Morris Engineering Company Ltd vs historical?
The current P/E ratio of 9.72 is lower than its historical median of 10.34, indicating that the stock is trading below 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 9.72 10.34 21.01
Price to Book 4.01 4.69 4.15
Price to Sales 2.51 1.86 3.38
EV to EBITDA 23.4 13.08 12.94

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