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Check Before You Invest : Cellecor Gadgets Ltd

BSE: 0 NSE: CELLECOR ISIN: INE0OMO01025
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Cellecor Gadgets Ltd belong to?
Cellecor Gadgets Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Cellecor Gadgets Ltd a good quality company?
Cellecor Gadgets 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 Cellecor Gadgets Ltd undervalued or overvalued?
Cellecor Gadgets 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 3-year
Historic Median
Price to Earnings 22.73 39.16
Price to Book 5.87 6.43
Price to Sales 0.7 1.26
EV to EBITDA 13.97 22.31
Q.4 Is Cellecor Gadgets Ltd a good buy now?
Cellecor Gadgets Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Cellecor Gadgets Ltd?
Cellecor Gadgets Ltd revenue growth is 105% for FY-2025, which is in line with its 3-year CAGR of 103.75%, indicating stable growth.

Q.2 Gross Profit margin of Cellecor Gadgets Ltd?
Cellecor Gadgets Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.1% for FY-2025, which is in line with its 3-year median of 4.2%, indicating stable margins.

Q.3 Operating Profit Margin of Cellecor Gadgets Ltd?
Cellecor Gadgets Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.29% for FY-2025, which is in line with its 3-year median of 5.29% indicating stable margins.

Q.4 Net Profit Margin of Cellecor Gadgets Ltd?
Cellecor Gadgets Ltd Net Profit Margin is 3.01% for FY-2025, is in line with its 3-year median of 3.05%, indicating stable margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 4.1 4.2
Operating Profit Margin (%) 5.29 5.29
Net Profit Margin (%) 3.01 3.05

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Cellecor Gadgets Ltd?
Cellecor Gadgets Ltd Return on Asset is 11.87%, which is below its 3-year historical median of 12.59%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Cellecor Gadgets Ltd?
Cellecor Gadgets Ltd Return on capital employed is 24.21% for FY-2025, which is below its 3-year historical median of 29.21%. 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 Cellecor Gadgets Ltd?
Cellecor Gadgets Ltd Return on equity is 25.44% for FY-2025, which is below its 3-year historical median of 31.03%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Cellecor Gadgets Ltd?
Cellecor Gadgets Ltd Cash conversion cycle is 55 days, above its 3-year historical median of 48 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 3.94 3.94
ROE (%) 25.44 31.03
ROCE (%) 24.21 29.21
Cash Conversion Cycle 55 days 48 days

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

Q.9 Debt to Equity ratio of Cellecor Gadgets Ltd?
Cellecor Gadgets Ltd Debt-to-Equity ratio is 0.79, 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 Cellecor Gadgets Ltd?
Cellecor Gadgets Ltd Debt to cash flow from operations is -3.6, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Cellecor Gadgets Ltd?

Q.1 Promoter shareholding and pledge status of Cellecor Gadgets Ltd?
Promoters hold 46.30% of the Cellecor Gadgets Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Cellecor Gadgets Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Cellecor Gadgets Ltd vs industry peers?
Cellecor Gadgets Ltd revenue CAGR is 103.75%, compared to the industry median CAGR of 4.99%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 105 5
Gross Profit Growth (%) 90.9 17.6
Operating Profit Growth (%) 80 21.1
Net Profit Growth (%) 93.8 19
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 3.94 0.66
ROE (%) 25.44 2.9
ROCE (%) 24.21 4.31
Cash Conversion Cycle (days) 54.77 49

Valuation & price assessment

Q.1 Stock return of Cellecor Gadgets Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -1.7% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -1.7%
Q.2 Valuation ratios of Cellecor Gadgets Ltd vs historical?
The current P/E ratio of 22.73 is lower than its historical median of 39.16, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 22.73 39.16 35.02
Price to Book 5.87 6.43 1.68
Price to Sales 0.7 1.26 2.16
EV to EBITDA 13.97 22.31 15.51

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