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Check Before You Invest : Aditya Infotech Ltd

BSE: 544466 NSE: CPPLUS ISIN: INE819V01029
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Aditya Infotech Ltd belong to?
Aditya Infotech Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Aditya Infotech Ltd a good quality company?
Aditya Infotech Ltd is a good quality company, based on a consistently good 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 Aditya Infotech Ltd undervalued or overvalued?
Aditya Infotech Ltd appears 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 210.7 -
Price to Book 19.31 -
Price to Sales 9.3 -
EV to EBITDA 113.7 -
Q.4 Is Aditya Infotech Ltd a good buy now?
Aditya Infotech 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 Aditya Infotech Ltd?
Aditya Infotech Ltd revenue growth is 10.2% for FY-2025, which is below its 5-year CAGR of 20.25%, indicating slower growth.

Q.2 Gross Profit margin of Aditya Infotech Ltd?
Aditya Infotech Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.1% for FY-2025, which is in line with its 5-year median of 6.1%, indicating stable margins.

Q.3 Operating Profit Margin of Aditya Infotech Ltd?
Aditya Infotech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.76% for FY-2025, which is in line with its 5-year median of 7.76% indicating stable margins.

Q.4 Net Profit Margin of Aditya Infotech Ltd?
Aditya Infotech Ltd Net Profit Margin is 4.41% for FY-2025, is in line with its 5-year median of 4.47%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 6.1 6.1
Operating Profit Margin (%) 7.76 7.76
Net Profit Margin (%) 4.41 4.47

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Aditya Infotech Ltd?
Aditya Infotech Ltd Return on Asset is 6.59%, which is below its 5-year historical median of 7.1%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Aditya Infotech Ltd?
Aditya Infotech Ltd Return on capital employed is 21.26% for FY-2025, which is below its 5-year historical median of 27.63%. 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 Aditya Infotech Ltd?
Aditya Infotech Ltd Return on equity is 22.01% for FY-2025, which is below its 5-year historical median of 36.27%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Aditya Infotech Ltd?
Aditya Infotech Ltd Cash conversion cycle is 61 days, above its 5-year historical median of 33 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 (x) 1.66 1.73
ROE (%) 22.01 36.27
ROCE (%) 21.26 27.63
Cash Conversion Cycle 61 days 33 days

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

Q.9 Debt to Equity ratio of Aditya Infotech Ltd?
Aditya Infotech Ltd Debt-to-Equity ratio is 0.58, 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 Aditya Infotech Ltd?
Aditya Infotech Ltd Debt to cash flow from operations is 13.76, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Aditya Infotech Ltd?

Q.1 Promoter shareholding and pledge status of Aditya Infotech Ltd?
Promoters hold 74.74% of the Aditya Infotech Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Aditya Infotech Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Aditya Infotech Ltd vs industry peers?
Aditya Infotech Ltd revenue CAGR is 20.25%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 10.2 -
Gross Profit Growth (%) 1 17.7
Operating Profit Growth (%) 6.7 16.1
Net Profit Growth (%) -6.9 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.66 0.52
ROE (%) 22.01 2.05
ROCE (%) 21.26 3.6
Cash Conversion Cycle (days) 60.61 46

Valuation & price assessment

Q.1 Stock return of Aditya Infotech Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Aditya Infotech Ltd vs historical?
The current P/E ratio of 210.7 is higher than its historical median of , indicating that the stock is trading above 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 210.7 - 33.62
Price to Book 19.31 - 1.57
Price to Sales 9.3 - 2.21
EV to EBITDA 113.7 - 14.09

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