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Check Before You Invest : Elnet Technologies Ltd

BSE: 517477 NSE: ELNET ISIN: INE033C01019
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does Elnet Technologies Ltd belong to?
Elnet Technologies Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is Elnet Technologies Ltd a good quality company?
Elnet Technologies Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Elnet Technologies Ltd undervalued or overvalued?
Elnet Technologies Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Elnet Technologies Ltd a good buy now?
Elnet Technologies 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 Elnet Technologies Ltd?
Elnet Technologies Ltd revenue growth is -11.9% for FY-2025 , which is below its 5 year CAGR of -0.9% , indicating slower growth.
Q.2 Gross Profit margin of Elnet Technologies Ltd?
Elnet Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 106.4% for FY-2025 , which is above its 5 year median of 92.8% , indicating increasing margins.
Q.3 Operating Profit Margin of Elnet Technologies Ltd?
Elnet Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 63.96% for FY-2025 , which is below its 5 year median of 67.16% indicating decreasing margins.
Q.4 Net Profit Margin of Elnet Technologies Ltd?
Elnet Technologies Ltd Net Profit Margin is 76.21% for FY-2025 , is above with its 5 year median of 57.11%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 106.4 92.8
Operating Profit Margin 63.96 67.16
Net Profit Margin 76.21 57.11
Q.5 Return on Asset of Elnet Technologies Ltd?
Elnet Technologies Ltd Return on Asset is 10.49%, which is in line with its 5 year historical median of 10.49%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Elnet Technologies Ltd?
Elnet Technologies Ltd Return on equity is 11.88% for FY-2025 , which is below its historical median of 12.21%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Elnet Technologies Ltd?
Elnet Technologies Ltd Return on capital employed is 15.36% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Elnet Technologies Ltd?
Elnet Technologies Ltd Cash conversion cycle is 17 days, below its historical median of 17 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.14 0.18
ROE 11.88 12.21
ROCE 15.36 16.21
Cash Conversion Cycle 17 days 17 days
Q.9 Debt to Equity ratio of Elnet Technologies Ltd?
Elnet Technologies Ltd Debt-to-Equity ratio is 0.03 , which is above with the industry average of 0.01 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Elnet Technologies Ltd?
Elnet Technologies Ltd Debt to cash flow from operations is 0.85 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Elnet Technologies Ltd?
Promoters hold 52.85% of the Elnet Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Elnet Technologies Ltd vs industry peers?
Elnet Technologies Ltd revenue CAGR is -0.85% , compared to the industry median CAGR of 3.07% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 23 23.9
Gross Profit 24.5 1.8
Operating Profit 15 1.4
Net Profit 18 0.8
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.14 0.46
ROE 11.88 3.97
ROCE 15.36 6.41
Cash Conversion Cycle (days) 17.1 36

Valuation & price assessment

Q.1 Stock return of Elnet Technologies Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 16% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 16% 22.8% 24.3% -5.8%
Q.3 Valuation ratios of Elnet Technologies Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 6.67 6.88 22.96
Price to Book 0.77 0.80 2.61
Price to Sales 5.5 4.19 4.40
EV to EBITDA 2.03 1.40 17.20

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