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Check Before You Invest : City Online Services Ltd

BSE: 538674 NSE: ISIN: INE158C01014
  |   Sector:  Telecom   |   Industry:  Telecommunication - Service Provider

Snapshot

Q.1 Which industry/sub-sector does City Online Services Ltd belong to?
City Online Services Ltd belongs to the Telecom sector, operating specifically within the Telecommunication - Service Provider segment.
Q.2 Is City Online Services Ltd a good quality company?
City Online Services Ltd is a quality company, based on a 10-year financial track record.
Q.3 Is City Online Services Ltd undervalued or overvalued?
City Online Services Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is City Online Services Ltd a good buy now?
City Online Services 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 City Online Services Ltd?
City Online Services Ltd revenue growth is -26.7% for FY-2025, which is below its 5-year CAGR of -8.33%, indicating slower growth.
Q.2 Return on capital employed (ROCE) of City Online Services Ltd?
City Online Services Ltd Return on capital employed is 37.05% for FY-2025, which is above its 5-year historical median of 24.96%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.
Q.3 Return on Asset of City Online Services Ltd?
City Online Services Ltd Return on Asset is 0.66%, which is above its 5-year historical median of -3.3%, indicating improved asset utilization efficiency.
Q.4 Return on Equity (ROE) of City Online Services Ltd?
City Online Services Ltd Return on equity is 0% for FY-2025, which is above its 5-year historical median of -30.93%, indicating the business is making better use of its shareholders capital.
Q.5 Cash conversion cycle of City Online Services Ltd?
City Online Services Ltd Cash conversion cycle is -246 days, above its 5-year historical median of -260 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 1.41 1.41
ROE - -30.93
ROCE 37.05 24.96
Cash Conversion Cycle -246 days -260 days
Q.6 Gross Profit margin of City Online Services Ltd?
City Online Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.6% for FY-2025, which is above its 5-year median of 4.7%, indicating increasing margins.
Q.7 Operating Profit Margin of City Online Services Ltd?
City Online Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.25% for FY-2025, which is above its 5-year median of -4.19% indicating increasing margins.
Q.8 Net Profit Margin of City Online Services Ltd?
City Online Services Ltd Net Profit Margin is 0.47% for FY-2025, is above with its 5-year median of -2.05%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin 7.6 4.7
Operating Profit Margin 5.25 -4.19
Net Profit Margin 0.47 -2.05
Q.9 Debt to Equity ratio of City Online Services Ltd?
City Online Services Ltd Debt-to-Equity ratio is -13.12, which is lower with the industry average of -0.74, indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of City Online Services Ltd?
City Online Services Ltd Debt to cash flow from operations is 2.96, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of City Online Services Ltd?
Promoters hold 14.75% of the City Online Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of City Online Services Ltd vs industry peers?
City Online Services Ltd revenue CAGR is -8.33%, compared to the industry median CAGR of 1.18%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth -26.7 1.2
Gross Profit Growth 18.8 6.6
Operating Profit Growth 0 7.5
Net Profit Growth 0 26.4
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover 1.41 0.86
ROE - 2.09
ROCE 37.05 9.4
Cash Conversion Cycle (days) -245.89 -5

Valuation & price assessment

Q.1 Stock return of City Online Services Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -0.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price
CAGR
-0.2% 32.5% 26.7% -12.3%
Q.3 Valuation ratios of City Online Services Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 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 - 9.87 19.31
Price to Book -9.94 -6.66 0.68
Price to Sales 0.54 0.32 2.17
EV to EBITDA 18.82 3.54 12.27

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