MoneyWorks4Me

Check Before You Invest : ENS Enterprises Ltd

BSE: 544876 NSE: ISIN: INE23ER01017
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does ENS Enterprises Ltd belong to?
ENS Enterprises Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is ENS Enterprises Ltd a good quality company?
ENS Enterprises 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 ENS Enterprises Ltd undervalued or overvalued?
ENS Enterprises Ltd appears 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 3-year
Historic Median
Price to Earnings 16.75 16.75
Price to Book 2.73 2.74
Price to Sales 2.74 2.74
EV to EBITDA 11.86 11.86
Q.4 Is ENS Enterprises Ltd a good buy now?
ENS Enterprises 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.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of ENS Enterprises Ltd?
ENS Enterprises Ltd revenue growth is 81.3% for FY-2026, which is below its 3-year CAGR of 91.11%, indicating slower growth.

Q.2 Gross Profit margin of ENS Enterprises Ltd?
ENS Enterprises Ltd Gross profit margin which is the profit after deduction of direct costs, is 23.3% for FY-2026, which is above its 3-year median of 20.4%, indicating increasing margins.

Q.3 Operating Profit Margin of ENS Enterprises Ltd?
ENS Enterprises Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 22.93% for FY-2026, which is above its 3-year median of 19.44% indicating increasing margins.

Q.4 Net Profit Margin of ENS Enterprises Ltd?
ENS Enterprises Ltd Net Profit Margin is 16.35% for FY-2026, is above its 3-year median of 13.07%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 23.3 20.4
Operating Profit Margin (%) 22.93 19.44
Net Profit Margin (%) 16.35 13.07

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of ENS Enterprises Ltd?
ENS Enterprises Ltd Return on Asset is 30.87%, which is in line with its 3-year historical median of 30.87%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of ENS Enterprises Ltd?
ENS Enterprises Ltd Return on capital employed is 71.71% for FY-2026, which is below its 3-year historical median of 85.23%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of ENS Enterprises Ltd?
ENS Enterprises Ltd Return on equity is 58.97% for FY-2026, which is in line with its 3-year historical median of 62.01%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of ENS Enterprises Ltd?
ENS Enterprises Ltd Cash conversion cycle is -52 days, in line with its 3-year historical median of -52 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 1.89 2.31
ROE (%) 58.97 62.01
ROCE (%) 71.71 85.23
Cash Conversion Cycle -52 days -52 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of ENS Enterprises Ltd?
ENS Enterprises Ltd Debt-to-Equity ratio is 0.22, which is above the industry average of 0.01, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of ENS Enterprises Ltd?
ENS Enterprises Ltd Debt to cash flow from operations is -3.6, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of ENS Enterprises Ltd?

Q.1 Promoter shareholding and pledge status of ENS Enterprises Ltd?
Promoters hold 55.13% of the ENS Enterprises Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does ENS Enterprises Ltd performance compare with that of its Peers?

Q.1 Revenue growth of ENS Enterprises Ltd vs industry peers?
ENS Enterprises Ltd revenue CAGR is 91.11%, compared to the industry median CAGR of 6.24%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 81.3 6.2
Gross Profit Growth (%) 100 20.2
Operating Profit Growth (%) 100 17
Net Profit Growth (%) 100 20.7
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.89 0.58
ROE (%) 58.97 6.21
ROCE (%) 71.71 8.9
Cash Conversion Cycle (days) -51.76 36

Valuation & price assessment

Q.1 Stock return of ENS Enterprises Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of ENS Enterprises Ltd vs historical?
The current P/E ratio of 16.75 is in line with than its historical median of 16.75, indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 16.75 16.75 46.11
Price to Book 2.73 2.74 2.78
Price to Sales 2.74 2.74 5.02
EV to EBITDA 11.86 11.86 17.30

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