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Check Before You Invest : Cash UR Drive Marketing Ltd

BSE: 0 NSE: CUDML ISIN: INE0WL201014
  |   Sector:  Media   |   Industry:  Advertising & Media

Snapshot

Q.1 Which industry/sub-sector does Cash UR Drive Marketing Ltd belong to?
Cash UR Drive Marketing Ltd belongs to the Media sector, operating specifically within the Advertising & Media segment.
Q.2 Is Cash UR Drive Marketing Ltd a good quality company?
Cash UR Drive Marketing 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 Cash UR Drive Marketing Ltd undervalued or overvalued?
Cash UR Drive Marketing 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 3-year
Historic Median
Price to Earnings 8.13 12.78
Price to Book 2.05 4.11
Price to Sales 1.28 1.72
EV to EBITDA 5.88 9.27
Q.4 Is Cash UR Drive Marketing Ltd a good buy now?
Cash UR Drive Marketing 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 Cash UR Drive Marketing Ltd?
Cash UR Drive Marketing Ltd revenue growth is 48.6% for FY-2025, which is above its 3-year CAGR of 19.49%, indicating faster growth.

Q.2 Gross Profit margin of Cash UR Drive Marketing Ltd?
Cash UR Drive Marketing Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.8% for FY-2025, which is above its 3-year median of 13.1%, indicating increasing margins.

Q.3 Operating Profit Margin of Cash UR Drive Marketing Ltd?
Cash UR Drive Marketing Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.84% for FY-2025, which is above its 3-year median of 9.24% indicating increasing margins.

Q.4 Net Profit Margin of Cash UR Drive Marketing Ltd?
Cash UR Drive Marketing Ltd Net Profit Margin is 12.69% for FY-2025, is above its 3-year median of 9.83%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 16.8 13.1
Operating Profit Margin (%) 14.84 9.24
Net Profit Margin (%) 12.69 9.83

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Cash UR Drive Marketing Ltd?
Cash UR Drive Marketing Ltd Return on Asset is 18.87%, which is above its 3-year historical median of 10.89%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Cash UR Drive Marketing Ltd?
Cash UR Drive Marketing Ltd Return on capital employed is 58.19% for FY-2025, which is in line with its 3-year historical median of 58.05%. 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 Cash UR Drive Marketing Ltd?
Cash UR Drive Marketing Ltd Return on equity is 44.43% for FY-2025, which is in line with its 3-year historical median of 44.43%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Cash UR Drive Marketing Ltd?
Cash UR Drive Marketing Ltd Cash conversion cycle is -52 days, above its 3-year historical median of -60 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 1.49 1.24
ROE (%) 44.43 44.43
ROCE (%) 58.19 58.05
Cash Conversion Cycle -52 days -60 days

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

Q.9 Debt to Equity ratio of Cash UR Drive Marketing Ltd?
Cash UR Drive Marketing Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.16, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Cash UR Drive Marketing Ltd?
Cash UR Drive Marketing Ltd Debt to cash flow from operations is -0.01, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Cash UR Drive Marketing Ltd?

Q.1 Promoter shareholding and pledge status of Cash UR Drive Marketing Ltd?
Promoters hold 57.23% of the Cash UR Drive Marketing Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Cash UR Drive Marketing Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Cash UR Drive Marketing Ltd vs industry peers?
Cash UR Drive Marketing Ltd revenue CAGR is 19.49%, compared to the industry median CAGR of 17.59%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 48.6 17.6
Gross Profit Growth (%) 91.7 54.1
Operating Profit Growth (%) 133.3 54.1
Net Profit Growth (%) 100 61.3
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.49 1.04
ROE (%) 44.43 13.92
ROCE (%) 58.19 18.37
Cash Conversion Cycle (days) -51.79 20

Valuation & price assessment

Q.1 Stock return of Cash UR Drive Marketing 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 Cash UR Drive Marketing Ltd vs historical?
The current P/E ratio of 8.13 is lower than its historical median of 12.78, 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 8.13 12.78 24.49
Price to Book 2.05 4.11 2.66
Price to Sales 1.28 1.72 2.73
EV to EBITDA 5.88 9.27 12.71

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