Check Before You Invest : ECS Biztech Ltd

BSE: 540063 NSE: ISIN: INE925Q01024

| Sector: Consumer Durables | Industry: IT - Hardware

Snapshot

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

ECS Biztech Ltd belongs to the Consumer Durables sector, operating specifically within the IT - Hardware segment.

Q.2 Is ECS Biztech Ltd a good quality company?

ECS Biztech Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is ECS Biztech Ltd undervalued or overvalued?

ECS Biztech Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is ECS Biztech Ltd a good buy now?

ECS Biztech 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 ECS Biztech Ltd?

ECS Biztech Ltd revenue growth is 35.2% for FY-2025, which is above its 5-year CAGR of 22.01%, indicating faster growth.

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

ECS Biztech Ltd Return on capital employed is 6.2% for FY-2025, which is above its 5-year historical median of 0.68%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of ECS Biztech Ltd?

ECS Biztech Ltd Return on Asset is 0.95%, which is below its 5-year historical median of 2.83%, indicating deteriorated asset utilization efficiency.

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

ECS Biztech Ltd Return on equity is 0% for FY-2025, which is above its 5-year historical median of -247.26%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of ECS Biztech Ltd?

ECS Biztech Ltd Cash conversion cycle is 83 days, in line with its 5-year historical median of 80 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.36	0.24
ROE	-	-247.26
ROCE	6.2	0.68
Cash Conversion Cycle	83 days	80 days

Q.6 Gross Profit margin of ECS Biztech Ltd?

ECS Biztech Ltd Gross profit margin which is the profit after deduction of direct costs, is 9% for FY-2025, which is in line with its 5-year median of 9.2%, indicating stable margins.

Q.7 Operating Profit Margin of ECS Biztech Ltd?

ECS Biztech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.76% for FY-2025, which is above its 5-year median of 7.96% indicating increasing margins.

Q.8 Net Profit Margin of ECS Biztech Ltd?

ECS Biztech Ltd Net Profit Margin is 0.69% for FY-2025, is below with its 5-year median of 14%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	9	9.2
Operating Profit Margin	8.76	7.96
Net Profit Margin	0.69	14

Q.9 Debt to Equity ratio of ECS Biztech Ltd?

ECS Biztech Ltd Debt-to-Equity ratio is -2.23, which is lower with the industry average of 0.53, indicating lower debt levels in the industry.

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

ECS Biztech Ltd Debt to cash flow from operations is 14.81, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of ECS Biztech Ltd?

Promoters hold 65.85% of the ECS Biztech Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of ECS Biztech Ltd vs industry peers?

ECS Biztech Ltd revenue CAGR is 22.01%, compared to the industry median CAGR of 12.66%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	35.2	12.7
Gross Profit Growth	30	29.1
Operating Profit Growth	52.9	33.6
Net Profit Growth	-99.3	34.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.36	0.71
ROE	-	6.95
ROCE	6.2	7.84
Cash Conversion Cycle (days)	83.24	70

Valuation & price assessment

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

Over the last 5 year(s), the stock has delivered a CAGR of 26.91% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	26.9%	20.2%	0.2%

Q.3 Valuation ratios of ECS Biztech Ltd vs historical?

The current P/E is higher 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	615.94	48.33	36.44
Price to Book	-8.01	-3.72	1.97
Price to Sales	8.88	8.40	2.97
EV to EBITDA	89.6	102.56	15.45

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