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INVESTMENT INSIGHTS

Check Before You Invest : Energy Development Company Ltd

BSE: 532219 NSE: ENERGYDEV ISIN: INE306C01019
  |   Sector:  Power   |   Industry:  Power Generation/Distribution

Snapshot

Q.1 Which industry/sub-sector does Energy Development Company Ltd belong to?
Energy Development Company Ltd belongs to the Power sector, operating specifically within the Power Generation/Distribution segment.
Q.2 Is Energy Development Company Ltd a good quality company?
Energy Development Company Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Energy Development Company Ltd undervalued or overvalued?
Energy Development Company Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Energy Development Company Ltd a good buy now?
Energy Development Company 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 Energy Development Company Ltd?
Energy Development Company Ltd revenue growth is 20.6% for FY-2025 , which is above its 5 year CAGR of 1.3% , indicating faster growth.
Q.2 Gross Profit margin of Energy Development Company Ltd?
Energy Development Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.8% for FY-2025 , which is below its 5 year median of 19.7% , indicating decreasing margins.
Q.3 Operating Profit Margin of Energy Development Company Ltd?
Energy Development Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.7% for FY-2025 , which is in line with its 5 year median of 17.7% indicating stable margins.
Q.4 Net Profit Margin of Energy Development Company Ltd?
Energy Development Company Ltd Net Profit Margin is -618.42% for FY-2025 , is below with its 5 year median of -4.35%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 9.8 19.7
Operating Profit Margin 17.7 17.7
Net Profit Margin -618.42 -4.35
Q.5 Return on Asset of Energy Development Company Ltd?
Energy Development Company Ltd Return on Asset is -35.87(x), which is below its 5 year historical median of -0.2(x), indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Energy Development Company Ltd?
Energy Development Company Ltd Return on equity is -56.11% for FY-2025 , which is below its historical median of -0.31%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Energy Development Company Ltd?
Energy Development Company Ltd Return on capital employed is -37.63% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Energy Development Company Ltd?
Energy Development Company Ltd Cash conversion cycle is 121 , below its historical median of 413 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.06 0.05
ROE -56.11 -0.31
ROCE -37.63 1.09
Cash Conversion Cycle 121 413
Q.9 Debt to Equity ratio of Energy Development Company Ltd?
Energy Development Company Ltd Debt-to-Equity ratio is 0.26 , which is lower with the industry average of 0.31 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Energy Development Company Ltd?
Energy Development Company Ltd Debt to cash flow from operations is 3.59 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Energy Development Company Ltd?
Promoters hold 58.14% of the Energy Development Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Energy Development Company Ltd vs industry peers?
Energy Development Company Ltd revenue CAGR is 1.32% , compared to the industry median CAGR of 0.03% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 11.5 227.5
Gross Profit 1.1 7.5
Operating Profit 2 6
Net Profit -71.1 1.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.06 0.12
ROE -56.11 2.44
ROCE -37.63 4.39
Cash Conversion Cycle 120.97 61

Valuation & price assessment

Q.1 Stock return of Energy Development Company Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of -13.3% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price -13.3% 13.1% -1.7% -14.6%
Q.3 Valuation ratios of Energy Development Company Ltd vs historical?
The current P/E is similar 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 - 0.00 32.46
Price to Book 0.81 0.20 1.75
Price to Sales 4.11 3.17 6.05
EV to EBITDA 13.97 25.04 12.85

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6. Reliance Power
7. Clean Max Env. Energ
8. GMR Power and Urban
9. PTC India
10. RattanIndia Power
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