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Check Before You Invest : Electro Force (India) Ltd

BSE: 0 NSE: EFORCE ISIN: INE0Q1W01012
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Electronics - Components

Snapshot

Q.1 Which industry/sub-sector does Electro Force (India) Ltd belong to?
Electro Force (India) Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electronics - Components segment.
Q.2 Is Electro Force (India) Ltd a good quality company?
Electro Force (India) Ltd is a quality company, based on a 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 Electro Force (India) Ltd undervalued or overvalued?
Electro Force (India) Ltd appears Undervalued, as its key valuation ratios are lower 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 41.21 31.55
Price to Book 0.74 1.71
Price to Sales 1.01 3.23
EV to EBITDA 20.38 20.55
Q.4 Is Electro Force (India) Ltd a good buy now?
Electro Force (India) 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.

Q.1 Gross Profit margin of Electro Force (India) Ltd?
Electro Force (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.3% for FY-2025, which is below its 5-year median of 23.4%, indicating decreasing margins.

Q.2 Operating Profit Margin of Electro Force (India) Ltd?
Electro Force (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.98% for FY-2025, which is below its 5-year median of 24.4% indicating decreasing margins.

Q.3 Net Profit Margin of Electro Force (India) Ltd?
Electro Force (India) Ltd Net Profit Margin is 2.44% for FY-2025, is below its 5-year median of 15.79%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 4.3 23.4
Operating Profit Margin (%) 2.98 24.4
Net Profit Margin (%) 2.44 15.79

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Electro Force (India) Ltd?
Electro Force (India) Ltd Return on Asset is 1.59%, which is below its 5-year historical median of 7.33%, indicating deteriorated asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Electro Force (India) Ltd?
Electro Force (India) Ltd Return on capital employed is 2.77% for FY-2025, which is below its 5-year historical median of 18.92%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.6 Return on Equity (ROE) of Electro Force (India) Ltd?
Electro Force (India) Ltd Return on equity is 1.81% for FY-2025, which is below its 5-year historical median of 12.99%, indicating the business is making worse 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 Electro Force (India) Ltd?
Electro Force (India) Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.25, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Electro Force (India) Ltd?
Electro Force (India) Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Electro Force (India) Ltd?

Q.1 Promoter shareholding and pledge status of Electro Force (India) Ltd?
Promoters hold 62.89% of the Electro Force (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Electro Force (India) Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Electro Force (India) Ltd vs industry peers?
Electro Force (India) Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 3.03%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - 3
Gross Profit Growth (%) -73.3 16
Operating Profit Growth (%) -82.5 19.2
Net Profit Growth (%) -77.7 16.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.65 0.79
ROE (%) 1.81 7.33
ROCE (%) 2.77 9.29
Cash Conversion Cycle (days) 140.42 121

Valuation & price assessment

Q.1 Stock return of Electro Force (India) Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -46.12% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -46.1%
Q.2 Valuation ratios of Electro Force (India) Ltd vs historical?
The current P/E ratio of 41.21 is higher than its historical median of 31.55, 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 41.21 31.55 37.32
Price to Book 0.74 1.71 3.80
Price to Sales 1.01 3.23 4.16
EV to EBITDA 20.38 20.55 22.30

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