Check Before You Invest : E2E Networks Ltd

BSE: 0 NSE: E2E ISIN: INE255Z01019

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

Snapshot

Q.1 Which industry/sub-sector does E2E Networks Ltd belong to?

E2E Networks Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is E2E Networks Ltd a good quality company?

E2E Networks Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is E2E Networks Ltd undervalued or overvalued?

E2E Networks Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is E2E Networks Ltd a good buy now?

E2E Networks 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

Q.1 Revenue growth of E2E Networks Ltd?

E2E Networks Ltd revenue growth is 73.6% for FY-2025, which is above its 5-year CAGR of 45.55%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of E2E Networks Ltd?

E2E Networks Ltd Return on capital employed is 8.58% for FY-2025, which is below its 5-year historical median of 17.12%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of E2E Networks Ltd?

E2E Networks Ltd Return on Asset is 3.35%, which is below its 5-year historical median of 13.51%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of E2E Networks Ltd?

E2E Networks Ltd Return on equity is 5.75% for FY-2025, which is below its 5-year historical median of 22.08%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of E2E Networks Ltd?

E2E Networks Ltd Cash conversion cycle is -7 days, above its 5-year historical median of -15 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	0.12	1.1
ROE	5.75	22.08
ROCE	8.58	17.12
Cash Conversion Cycle	-7 days	-15 days

Q.6 Gross Profit margin of E2E Networks Ltd?

E2E Networks Ltd Gross profit margin which is the profit after deduction of direct costs, is 74.9% for FY-2025, which is above its 5-year median of 48.7%, indicating increasing margins.

Q.7 Operating Profit Margin of E2E Networks Ltd?

E2E Networks Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 59.11% for FY-2025, which is above its 5-year median of 49.97% indicating increasing margins.

Q.8 Net Profit Margin of E2E Networks Ltd?

E2E Networks Ltd Net Profit Margin is 28.97% for FY-2025, is above with its 5-year median of 14.97%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	74.9	48.7
Operating Profit Margin	59.11	49.97
Net Profit Margin	28.97	14.97

Q.9 Debt to Equity ratio of E2E Networks Ltd?

E2E Networks Ltd Debt-to-Equity ratio is 0.01, which is lower with the industry average of 0.11, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of E2E Networks Ltd?

E2E Networks Ltd Debt to cash flow from operations is 0.13, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of E2E Networks Ltd?

Promoters hold 39.45% of the E2E Networks Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of E2E Networks Ltd vs industry peers?

E2E Networks Ltd revenue CAGR is 45.55%, compared to the industry median CAGR of 10.86%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	73.6	10.9
Gross Profit Growth	167.4	18.3
Operating Profit Growth	102.1	18.8
Net Profit Growth	113.6	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.12	0.5
ROE	5.75	5.83
ROCE	8.58	6.79
Cash Conversion Cycle (days)	-6.72	47

Valuation & price assessment

Q.1 Stock return of E2E Networks Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 136.83% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	136.8%	154.9%	7%

Q.3 Valuation ratios of E2E Networks Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	-	67.61	47.37
Price to Book	3.45	7.63	2.63
Price to Sales	23.7	15.13	4.79
EV to EBITDA	34.68	23.74	16.48

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