Check Before You Invest : Earkart Ltd

Snapshot

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

Earkart Ltd belongs to the Healthcare sector, operating specifically within the Medical Equipment/Supplies/Accessories segment.

Q.2 Is Earkart Ltd a good quality company?

Earkart Ltd is a weak quality company, based on a inconsistent 4-year financial track record.

Q.3 Is Earkart Ltd undervalued or overvalued?

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

Q.4 Is Earkart Ltd a good buy now?

Earkart 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

Q.1 Revenue growth of Earkart Ltd?

Earkart Ltd revenue growth is 35.8% for FY-2025, which is below its 3-year CAGR of 96.41%, indicating slower growth.

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

Earkart Ltd Return on capital employed is 44.39% for FY-2025, which is above its 3-year historical median of 29.05%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Earkart Ltd?

Earkart Ltd Return on Asset is 26.86%, which is above its 3-year historical median of 18.04%, indicating improved asset utilization efficiency.

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

Earkart Ltd Return on equity is 40.63% for FY-2025, which is above its 3-year historical median of 31.31%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Earkart Ltd?

Earkart Ltd Cash conversion cycle is 137 days, above its 3-year historical median of 91 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	1.74	1.87
ROE	40.63	31.31
ROCE	44.39	29.05
Cash Conversion Cycle	137 days	91 days

Q.6 Gross Profit margin of Earkart Ltd?

Earkart Ltd Gross profit margin which is the profit after deduction of direct costs, is 21.4% for FY-2025, which is above its 3-year median of 10.8%, indicating increasing margins.

Q.7 Operating Profit Margin of Earkart Ltd?

Earkart Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 22.26% for FY-2025, which is above its 3-year median of 11.26% indicating increasing margins.

Q.8 Net Profit Margin of Earkart Ltd?

Earkart Ltd Net Profit Margin is 15.41% for FY-2025, is above with its 3-year median of 9.63%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin	21.4	10.8
Operating Profit Margin	22.26	11.26
Net Profit Margin	15.41	9.63

Q.9 Debt to Equity ratio of Earkart Ltd?

Earkart Ltd Debt-to-Equity ratio is 0.25, which is lower with the industry average of 0.3, indicating lower debt levels in the industry.

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

Earkart Ltd Debt to cash flow from operations is 6.97, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Earkart Ltd?

Promoters hold 57.34% of the Earkart Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Earkart Ltd vs industry peers?

Earkart Ltd revenue CAGR is 96.41%, compared to the industry median CAGR of 14.93%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	35.8	14.9
Gross Profit Growth	200	20.5
Operating Profit Growth	150	17.3
Net Profit Growth	133.3	26

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	1.74	1
ROE	40.63	19.19
ROCE	44.39	21.38
Cash Conversion Cycle (days)	136.71	93

Valuation & price assessment

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

Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

Q.3 Valuation ratios of Earkart Ltd vs historical?

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

Q.4 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	30.24	33.68	32.23
Price to Book	8.73	3.47	4.79
Price to Sales	4.66	5.19	3.65
EV to EBITDA	21.22	23.58	19.51

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