Check Before You Invest : CSM Technologies Ltd

Q: Which industry/sub-sector does CSM Technologies Ltd belong to?

CSM Technologies Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q: Is CSM Technologies Ltd a good quality company?

CSM Technologies 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: Is CSM Technologies Ltd undervalued or overvalued?

CSM Technologies 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. Price to Earnings, Current: 25.28, Historic Median: 31.43. Price to Book, Current: 1.98, Historic Median: 1.97. Price to Sales, Current: 2.41, Historic Median: 2.61. EV to EBITDA, Current: 13.55, Historic Median: 16.36

Q: Is CSM Technologies Ltd a good buy now?

CSM Technologies 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

Q: Gross Profit margin of CSM Technologies Ltd?

CSM Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.7% for FY-2025, which is in line with its 3-year median of 14.7%, indicating stable margins.

Q: Operating Profit Margin of CSM Technologies Ltd?

CSM Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.57% for FY-2025, which is in line with its 3-year median of 15.55% indicating stable margins.

Q: Net Profit Margin of CSM Technologies Ltd?

CSM Technologies Ltd Net Profit Margin is 8.29% for FY-2025, is in line with its 3-year median of 8.29%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 14.7, Historic Median: 14.7. Operating Profit Margin (%), Current: 15.57, Historic Median: 15.55. Net Profit Margin (%), Current: 8.29, Historic Median: 8.29

Q: Return on Asset of CSM Technologies Ltd?

CSM Technologies Ltd Return on Asset is 11%, which is below its 3-year historical median of 14.4%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of CSM Technologies Ltd?

CSM Technologies Ltd Return on capital employed is 24.71% for FY-2025, which is below its 3-year historical median of 29.47%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q: Return on Equity (ROE) of CSM Technologies Ltd?

CSM Technologies Ltd Return on equity is 20.71% for FY-2025, which is below its 3-year historical median of 25.1%, indicating the business is making worse use of its shareholders capital.

Check Before You Invest : CSM Technologies Ltd

BSE: 544806 NSE: CSM ISIN: INE0ZK601013

| Sector: IT & ITES | Industry: IT - Software

Snapshot

Q.1 Which industry/sub-sector does CSM Technologies Ltd belong to?

CSM Technologies Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is CSM Technologies Ltd a good quality company?

CSM Technologies 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 CSM Technologies Ltd undervalued or overvalued?

CSM Technologies 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	3-year Historic Median
Price to Earnings	25.28	31.43
Price to Book	1.98	1.97
Price to Sales	2.41	2.61
EV to EBITDA	13.55	16.36

Q.4 Is CSM Technologies Ltd a good buy now?

CSM Technologies 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.

Q.1 Gross Profit margin of CSM Technologies Ltd?

CSM Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.7% for FY-2025, which is in line with its 3-year median of 14.7%, indicating stable margins.

Q.2 Operating Profit Margin of CSM Technologies Ltd?

CSM Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.57% for FY-2025, which is in line with its 3-year median of 15.55% indicating stable margins.

Q.3 Net Profit Margin of CSM Technologies Ltd?

CSM Technologies Ltd Net Profit Margin is 8.29% for FY-2025, is in line with its 3-year median of 8.29%, indicating stable margins.

	Current Level	3-year Historic Median
Gross Profit Margin (%)	14.7	14.7
Operating Profit Margin (%)	15.57	15.55
Net Profit Margin (%)	8.29	8.29

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of CSM Technologies Ltd?

CSM Technologies Ltd Return on Asset is 11%, which is below its 3-year historical median of 14.4%, indicating deteriorated asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of CSM Technologies Ltd?

CSM Technologies Ltd Return on capital employed is 24.71% for FY-2025, which is below its 3-year historical median of 29.47%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of CSM Technologies Ltd?

CSM Technologies Ltd Return on equity is 20.71% for FY-2025, which is below its 3-year historical median of 25.1%, indicating the business is making worse use of its shareholders capital.

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

Q.7 Debt to Equity ratio of CSM Technologies Ltd?

CSM Technologies Ltd Debt-to-Equity ratio is 0.36, which is above the industry average of 0.01, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of CSM Technologies Ltd?

CSM Technologies Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of CSM Technologies Ltd?

Q.1 Promoter shareholding and pledge status of CSM Technologies Ltd?

Promoters hold 71.18% of the CSM Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of CSM Technologies Ltd vs industry peers?

CSM Technologies Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 7.07%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth (%)	-	7.1
Gross Profit Growth (%)	7.4	22.4
Operating Profit Growth (%)	14.8	18.6
Net Profit Growth (%)	-	23.9

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover (x)	1.33	0.54
ROE (%)	20.71	5.88
ROCE (%)	24.71	8.67
Cash Conversion Cycle (days)	54.87	40

Valuation & price assessment

Q.1 Stock return of CSM Technologies 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 CSM Technologies Ltd vs historical?

The current P/E ratio of 25.28 is lower than its historical median of 31.43, 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	25.28	31.43	46.11
Price to Book	1.98	1.97	2.78
Price to Sales	2.41	2.61	5.02
EV to EBITDA	13.55	16.36	17.30

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Check Before You Invest : CSM Technologies Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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