Check Before You Invest : Effwa Infra & Research Ltd

Q: Which industry/sub-sector does Effwa Infra & Research Ltd belong to?

Effwa Infra & Research Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q: Is Effwa Infra & Research Ltd a good quality company?

Effwa Infra & Research Ltd is a average quality company, based on a somewhat consistent 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 Effwa Infra & Research Ltd undervalued or overvalued?

Effwa Infra & Research Ltd appears Somewhat 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: 31.22, Historic Median: 28.39. Price to Book, Current: 6.62, Historic Median: 6.05. Price to Sales, Current: 3.39, Historic Median: 3.02. EV to EBITDA, Current: 20.14, Historic Median: 19.05

Q: Is Effwa Infra & Research Ltd a good buy now?

Effwa Infra & Research 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

Q: Gross Profit margin of Effwa Infra & Research Ltd?

Effwa Infra & Research Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.8% for FY-2025, which is above its 5-year median of 6.2%, indicating increasing margins.

Q: Operating Profit Margin of Effwa Infra & Research Ltd?

Effwa Infra & Research Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.13% for FY-2025, which is above its 5-year median of 7.81% indicating increasing margins.

Q: Net Profit Margin of Effwa Infra & Research Ltd?

Effwa Infra & Research Ltd Net Profit Margin is 10.86% for FY-2025, is above its 5-year median of 4.46%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 14.8, Historic Median: 6.2. Operating Profit Margin (%), Current: 16.13, Historic Median: 7.81. Net Profit Margin (%), Current: 10.86, Historic Median: 4.46

Q: Return on Asset of Effwa Infra & Research Ltd?

Effwa Infra & Research Ltd Return on Asset is 17.53%, which is above its 5-year historical median of 11.57%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Effwa Infra & Research Ltd?

Effwa Infra & Research Ltd Return on capital employed is 35.41% for FY-2025, which is above its 5-year historical median of 27.15%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q: Return on Equity (ROE) of Effwa Infra & Research Ltd?

Effwa Infra & Research Ltd Return on equity is 30.45% for FY-2025, which is above its 5-year historical median of 28.36%, indicating the business is making better use of its shareholders capital.

Check Before You Invest : Effwa Infra & Research Ltd

Snapshot

Q.1 Which industry/sub-sector does Effwa Infra & Research Ltd belong to?

Effwa Infra & Research Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q.2 Is Effwa Infra & Research Ltd a good quality company?

Effwa Infra & Research Ltd is a average quality company, based on a somewhat consistent 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 Effwa Infra & Research Ltd undervalued or overvalued?

Effwa Infra & Research Ltd appears Somewhat 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	5-year Historic Median
Price to Earnings	31.22	28.39
Price to Book	6.62	6.05
Price to Sales	3.39	3.02
EV to EBITDA	20.14	19.05

Q.4 Is Effwa Infra & Research Ltd a good buy now?

Effwa Infra & Research 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

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 Effwa Infra & Research Ltd?

Effwa Infra & Research Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.8% for FY-2025, which is above its 5-year median of 6.2%, indicating increasing margins.

Q.2 Operating Profit Margin of Effwa Infra & Research Ltd?

Effwa Infra & Research Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.13% for FY-2025, which is above its 5-year median of 7.81% indicating increasing margins.

Q.3 Net Profit Margin of Effwa Infra & Research Ltd?

Effwa Infra & Research Ltd Net Profit Margin is 10.86% for FY-2025, is above its 5-year median of 4.46%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	14.8	6.2
Operating Profit Margin (%)	16.13	7.81
Net Profit Margin (%)	10.86	4.46

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Effwa Infra & Research Ltd?

Effwa Infra & Research Ltd Return on Asset is 17.53%, which is above its 5-year historical median of 11.57%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Effwa Infra & Research Ltd?

Effwa Infra & Research Ltd Return on capital employed is 35.41% for FY-2025, which is above its 5-year historical median of 27.15%. 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 Effwa Infra & Research Ltd?

Effwa Infra & Research Ltd Return on equity is 30.45% for FY-2025, which is above its 5-year historical median of 28.36%, indicating the business is making better 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 Effwa Infra & Research Ltd?

Effwa Infra & Research Ltd Debt-to-Equity ratio is 0.31, which is lower the industry average of 0.38, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Effwa Infra & Research Ltd?

Effwa Infra & Research Ltd Debt to cash flow from operations is -0.95, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Effwa Infra & Research Ltd?

Q.1 Promoter shareholding and pledge status of Effwa Infra & Research Ltd?

Promoters hold 73.03% of the Effwa Infra & Research Ltd, with 20.45% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Effwa Infra & Research Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Effwa Infra & Research Ltd vs industry peers?

Effwa Infra & Research Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 0.00%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-	0
Gross Profit Growth (%)	42.1	16.3
Operating Profit Growth (%)	50	13.9
Net Profit Growth (%)	42.9	20.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.61	0.62
ROE (%)	30.45	6.32
ROCE (%)	35.41	10.58
Cash Conversion Cycle (days)	136.4	51

Valuation & price assessment

Q.1 Stock return of Effwa Infra & Research Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of 31% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	31%

Q.2 Valuation ratios of Effwa Infra & Research Ltd vs historical?

The current P/E ratio of 31.22 is higher than its historical median of 28.39, indicating that the stock is trading above its historical average valuation.

Q.3 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	31.22	28.39	21.52
Price to Book	6.62	6.05	1.74
Price to Sales	3.39	3.02	1.51
EV to EBITDA	20.14	19.05	11.49

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Check Before You Invest : Effwa Infra & Research Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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