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Check Before You Invest : Enser Communications Ltd

BSE: 0 NSE: ENSER ISIN: INE0R9I01021
  |   Sector:  IT & ITES   |   Industry:  BPO/ITeS

Snapshot

Q.1 Which industry/sub-sector does Enser Communications Ltd belong to?
Enser Communications Ltd belongs to the IT & ITES sector, operating specifically within the BPO/ITeS segment.
Q.2 Is Enser Communications Ltd a good quality company?
Enser Communications 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 Enser Communications Ltd undervalued or overvalued?
Enser Communications Ltd appears Somewhat 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 16.88 29.94
Price to Book 4.06 4.85
Price to Sales 1.96 2.71
EV to EBITDA 10.7 16.91
Q.4 Is Enser Communications Ltd a good buy now?
Enser Communications 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 Enser Communications Ltd?
Enser Communications Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.8% for FY-2025, which is above its 5-year median of 10%, indicating increasing margins.

Q.2 Operating Profit Margin of Enser Communications Ltd?
Enser Communications Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.62% for FY-2025, which is above its 5-year median of 11.33% indicating increasing margins.

Q.3 Net Profit Margin of Enser Communications Ltd?
Enser Communications Ltd Net Profit Margin is 11.63% for FY-2025, is above its 5-year median of 5.31%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 17.8 10
Operating Profit Margin (%) 18.62 11.33
Net Profit Margin (%) 11.63 5.31

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Enser Communications Ltd?
Enser Communications Ltd Return on Asset is 15.36%, which is above its 5-year historical median of 11.44%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Enser Communications Ltd?
Enser Communications Ltd Return on capital employed is 30.38% for FY-2025, which is in line with its 5-year historical median of 30.38%. 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 Enser Communications Ltd?
Enser Communications Ltd Return on equity is 27.31% for FY-2025, which is below its 5-year historical median of 34.74%, 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 Enser Communications Ltd?
Enser Communications Ltd Debt-to-Equity ratio is 0.43, which is above the industry average of 0.05, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Enser Communications Ltd?
Enser Communications Ltd Debt to cash flow from operations is -20.4, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Enser Communications Ltd?

Q.1 Promoter shareholding and pledge status of Enser Communications Ltd?
Promoters hold 66.43% of the Enser Communications Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Enser Communications Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Enser Communications Ltd vs industry peers?
Enser Communications Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 3.91%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - 3.9
Gross Profit Growth (%) 50 10.8
Operating Profit Growth (%) 44.4 10.8
Net Profit Growth (%) 60 8.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.32 0.72
ROE (%) 27.31 10.43
ROCE (%) 30.38 15.4
Cash Conversion Cycle (days) 63.89 38

Valuation & price assessment

Q.1 Stock return of Enser Communications Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -19.34% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -19.3%
Q.2 Valuation ratios of Enser Communications Ltd vs historical?
The current P/E ratio of 16.88 is lower than its historical median of 29.94, indicating that the stock is trading below 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 16.88 29.94 29.72
Price to Book 4.06 4.85 2.75
Price to Sales 1.96 2.71 4.18
EV to EBITDA 10.7 16.91 15.58

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