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Check Before You Invest : Competent Automobiles Company Ltd

BSE: 531041 NSE: ISIN: INE823B01015
  |   Sector:  Automobiles   |   Industry:  Automobiles - Dealers & Distributors

Snapshot

Q.1 Which industry/sub-sector does Competent Automobiles Company Ltd belong to?
Competent Automobiles Company Ltd belongs to the Automobiles sector, operating specifically within the Automobiles - Dealers & Distributors segment.
Q.2 Is Competent Automobiles Company Ltd a good quality company?
Competent Automobiles Company Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Competent Automobiles Company Ltd undervalued or overvalued?
Competent Automobiles Company Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Competent Automobiles Company Ltd a good buy now?
Competent Automobiles 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

Q.1 Revenue growth of Competent Automobiles Company Ltd?
Competent Automobiles Company Ltd revenue growth is 0.7% for FY-2025 , which is below its 5 year CAGR of 12.8% , indicating slower growth.
Q.2 Gross Profit margin of Competent Automobiles Company Ltd?
Competent Automobiles Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.8% for FY-2025 , which is below its 5 year median of 3.1% , indicating decreasing margins.
Q.3 Operating Profit Margin of Competent Automobiles Company Ltd?
Competent Automobiles Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.88% for FY-2025 , which is in line with its 5 year median of 3.88% indicating stable margins.
Q.4 Net Profit Margin of Competent Automobiles Company Ltd?
Competent Automobiles Company Ltd Net Profit Margin is 1.06% for FY-2025 , is below with its 5 year median of 1.43%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 2.8 3.1
Operating Profit Margin 3.88 3.88
Net Profit Margin 1.06 1.43
Q.5 Return on Asset of Competent Automobiles Company Ltd?
Competent Automobiles Company Ltd Return on Asset is 3.03%, which is below its 5 year historical median of 4.1%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Competent Automobiles Company Ltd?
Competent Automobiles Company Ltd Return on equity is 6.37% for FY-2025 , which is below its historical median of 7.04%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Competent Automobiles Company Ltd?
Competent Automobiles Company Ltd Return on capital employed is 9.72% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Competent Automobiles Company Ltd?
Competent Automobiles Company Ltd Cash conversion cycle is 45 days, above its historical median of 32 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 2.86 2.86
ROE 6.37 7.04
ROCE 9.72 10.37
Cash Conversion Cycle 45 days 32 days
Q.9 Debt to Equity ratio of Competent Automobiles Company Ltd?
Competent Automobiles Company Ltd Debt-to-Equity ratio is 0.87 , which is lower with the industry average of 0.97 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Competent Automobiles Company Ltd?
Competent Automobiles Company Ltd Debt to cash flow from operations is 4.51 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Competent Automobiles Company Ltd?
Promoters hold 74.92% of the Competent Automobiles Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Competent Automobiles Company Ltd vs industry peers?
Competent Automobiles Company Ltd revenue CAGR is 12.83% , compared to the industry median CAGR of 6.98% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 2,131.2 278
Gross Profit 59.7 52.6
Operating Profit 83 6
Net Profit 23 16
Operating Efficiency
Current Level Industry Median
Asset Turnover 2.86 1.73
ROE 6.37 7.12
ROCE 9.72 10.37
Cash Conversion Cycle (days) 44.91 52

Valuation & price assessment

Q.1 Stock return of Competent Automobiles Company Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 9.5% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 9.5% 21.4% 21.3% -7.1%
Q.3 Valuation ratios of Competent Automobiles Company 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 10.09 5.52 61.63
Price to Book 0.61 0.30 0.93
Price to Sales 0.1 0.07 1.10
EV to EBITDA 5.84 2.85 14.03

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