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Check Before You Invest : Ceinsys Tech Ltd

BSE: 538734 NSE: CEINSYS ISIN: INE016Q01014
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does Ceinsys Tech Ltd belong to?
Ceinsys Tech Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is Ceinsys Tech Ltd a good quality company?
Ceinsys Tech Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Ceinsys Tech Ltd undervalued or overvalued?
Ceinsys Tech Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Ceinsys Tech Ltd a good buy now?
Ceinsys Tech 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

Q.1 Revenue growth of Ceinsys Tech Ltd?
Ceinsys Tech Ltd revenue growth is 71.2% for FY-2025 , which is above its 5 year CAGR of 15.2% , indicating faster growth.
Q.2 Gross Profit margin of Ceinsys Tech Ltd?
Ceinsys Tech Ltd Gross profit margin which is the profit after deduction of direct costs, is 29.1% for FY-2025 , which is above its 5 year median of 7.2% , indicating increasing margins.
Q.3 Operating Profit Margin of Ceinsys Tech Ltd?
Ceinsys Tech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 23.86% for FY-2025 , which is above its 5 year median of 12.11% indicating increasing margins.
Q.4 Net Profit Margin of Ceinsys Tech Ltd?
Ceinsys Tech Ltd Net Profit Margin is 20.36% for FY-2025 , is above with its 5 year median of 3.91%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 29.1 7.2
Operating Profit Margin 23.86 12.11
Net Profit Margin 20.36 3.91
Q.5 Return on Asset of Ceinsys Tech Ltd?
Ceinsys Tech Ltd Return on Asset is 19.31%, which is above its 5 year historical median of 2.9%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Ceinsys Tech Ltd?
Ceinsys Tech Ltd Return on equity is 29.24% for FY-2025 , which is above its historical median of 6.2%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Ceinsys Tech Ltd?
Ceinsys Tech Ltd Return on capital employed is 35.23% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Ceinsys Tech Ltd?
Ceinsys Tech Ltd Cash conversion cycle is 84 days, above its historical median of 84 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.95 0.74
ROE 29.24 6.2
ROCE 35.23 11.24
Cash Conversion Cycle 84 days 84 days
Q.9 Debt to Equity ratio of Ceinsys Tech Ltd?
Ceinsys Tech Ltd Debt-to-Equity ratio is 0.11 , which is above with the industry average of 0.01 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Ceinsys Tech Ltd?
Ceinsys Tech Ltd Debt to cash flow from operations is 1.74 , which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Ceinsys Tech Ltd?
Promoters hold 50.70% of the Ceinsys Tech Ltd, with 14.65% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Ceinsys Tech Ltd vs industry peers?
Ceinsys Tech Ltd revenue CAGR is 15.16% , compared to the industry median CAGR of 2.87% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 399.7 23.3
Gross Profit 116.4 1.8
Operating Profit 95 1
Net Profit 81 0.8
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.95 0.44
ROE 29.24 3.97
ROCE 35.23 6.41
Cash Conversion Cycle (days) 83.66 36

Valuation & price assessment

Q.1 Stock return of Ceinsys Tech Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 38.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 38.2% 53% 99.4% -21.8%
Q.3 Valuation ratios of Ceinsys Tech Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 16.71 15.34 22.96
Price to Book 3.45 2.09 2.61
Price to Sales 3.92 0.91 4.40
EV to EBITDA 12.59 10.88 17.20

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