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Check Before You Invest : Cravatex Ltd

BSE: 509472 NSE: ISIN: INE145E01017
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Cravatex Ltd belong to?
Cravatex Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Cravatex Ltd a good quality company?
Cravatex Ltd is a quality company, based on a 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 Cravatex Ltd undervalued or overvalued?
Cravatex Ltd appears Fair, as its key valuation ratios are in line with 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 26.68 19.91
Price to Book 4.22 5.00
Price to Sales 12.89 32.40
EV to EBITDA 18.27 15.66
Q.4 Is Cravatex Ltd a good buy now?
Cravatex 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

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 Cravatex Ltd?
Cravatex Ltd revenue growth is 156.7% for FY-2025, which is above its 5-year CAGR of 14.68%, indicating faster growth.

Q.2 Gross Profit margin of Cravatex Ltd?
Cravatex Ltd Gross profit margin which is the profit after deduction of direct costs, is 134.3% for FY-2025, which is below its 5-year median of 237.3%, indicating decreasing margins.

Q.3 Operating Profit Margin of Cravatex Ltd?
Cravatex Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -55.82% for FY-2025, which is above its 5-year median of -91.21% indicating increasing margins.

Q.4 Net Profit Margin of Cravatex Ltd?
Cravatex Ltd Net Profit Margin is 101.4% for FY-2025, is below its 5-year median of 179.59%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 134.3 237.3
Operating Profit Margin (%) -55.82 -91.21
Net Profit Margin (%) 101.4 179.59

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Cravatex Ltd?
Cravatex Ltd Return on Asset is 20.42%, which is above its 5-year historical median of 11.99%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Cravatex Ltd?
Cravatex Ltd Return on capital employed is 29.8% for FY-2025, which is above its 5-year historical median of 17.21%. 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 Cravatex Ltd?
Cravatex Ltd Return on equity is 24.97% for FY-2025, which is above its 5-year historical median of 16.1%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Cravatex Ltd?
Cravatex Ltd Cash conversion cycle is -6 days, below its 5-year historical median of 3 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.2 0.09
ROE (%) 24.97 16.1
ROCE (%) 29.8 17.21
Cash Conversion Cycle -6 days 3 days

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

Q.9 Debt to Equity ratio of Cravatex Ltd?
Cravatex Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.03, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Cravatex Ltd?
Cravatex Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Cravatex Ltd?

Q.1 Promoter shareholding and pledge status of Cravatex Ltd?
Promoters hold 75.00% of the Cravatex Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Cravatex Ltd vs industry peers?
Cravatex Ltd revenue CAGR is 14.68%, 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 (%) 156.7 -
Gross Profit Growth (%) 37.3 17.9
Operating Profit Growth (%) 0 16.4
Net Profit Growth (%) 37.3 17.3
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.2 0.52
ROE (%) 24.97 2.05
ROCE (%) 29.8 3.6
Cash Conversion Cycle (days) -5.57 46

Valuation & price assessment

Q.1 Stock return of Cravatex Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 4.2% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
4.2% 5.2% 4.3% -8.1%
Q.2 Valuation ratios of Cravatex Ltd vs historical?
The current P/E ratio of 26.68 is higher than its historical median of 19.91, 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 26.68 19.91 33.62
Price to Book 4.22 5.00 1.57
Price to Sales 12.89 32.40 2.21
EV to EBITDA 18.27 15.66 14.09

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