SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Expleo Solutions Ltd

BSE: 533121 NSE: EXPLEOSOL ISIN: INE201K01015
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does Expleo Solutions Ltd belong to?
Expleo Solutions Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is Expleo Solutions Ltd a good quality company?
Expleo Solutions Ltd is a good quality company, based on a consistently good 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 Expleo Solutions Ltd undervalued or overvalued?
Expleo Solutions 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 14.03 22.66
Price to Book 2.08 4.27
Price to Sales 1.38 2.51
EV to EBITDA 6.22 12.53
Q.4 Is Expleo Solutions Ltd a good buy now?
Expleo Solutions 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.

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

Q.1 Revenue growth of Expleo Solutions Ltd?
Expleo Solutions Ltd revenue growth is 6.2% for FY-2025, which is below its 5-year CAGR of 30.55%, indicating slower growth.

Q.2 Gross Profit margin of Expleo Solutions Ltd?
Expleo Solutions Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.3% for FY-2025, which is below its 5-year median of 16.7%, indicating decreasing margins.

Q.3 Operating Profit Margin of Expleo Solutions Ltd?
Expleo Solutions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.63% for FY-2025, which is below its 5-year median of 16.23% indicating decreasing margins.

Q.4 Net Profit Margin of Expleo Solutions Ltd?
Expleo Solutions Ltd Net Profit Margin is 9.3% for FY-2025, is in line with its 5-year median of 9.3%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 15.3 16.7
Operating Profit Margin (%) 14.63 16.23
Net Profit Margin (%) 9.3 9.3

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Expleo Solutions Ltd?
Expleo Solutions Ltd Return on Asset is 13.58%, which is below its 5-year historical median of 16.66%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Expleo Solutions Ltd?
Expleo Solutions Ltd Return on capital employed is 23.7% for FY-2025, which is below its 5-year historical median of 41.83%. 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 Expleo Solutions Ltd?
Expleo Solutions Ltd Return on equity is 17.22% for FY-2025, which is below its 5-year historical median of 25.04%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Expleo Solutions Ltd?
Expleo Solutions Ltd Cash conversion cycle is 83 days, above its 5-year historical median of 50 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.46 1.47
ROE (%) 17.22 25.04
ROCE (%) 23.7 41.83
Cash Conversion Cycle 83 days 50 days

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

Q.9 Debt to Equity ratio of Expleo Solutions Ltd?
Expleo Solutions Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.01, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Expleo Solutions Ltd?
Expleo Solutions Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Expleo Solutions Ltd?

Q.1 Promoter shareholding and pledge status of Expleo Solutions Ltd?
Promoters hold 71.05% of the Expleo Solutions Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Expleo Solutions Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Expleo Solutions Ltd vs industry peers?
Expleo Solutions Ltd revenue CAGR is 30.55%, compared to the industry median CAGR of 3.17%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 6.2 3.2
Gross Profit Growth (%) 11.4 18.4
Operating Profit Growth (%) 7.1 18.8
Net Profit Growth (%) 17.3 21.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.46 0.46
ROE (%) 17.22 4.22
ROCE (%) 23.7 6.49
Cash Conversion Cycle (days) 82.92 36

Valuation & price assessment

Q.1 Stock return of Expleo Solutions Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -2% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-2% 5.9% -12.1% 15.5%
Q.2 Valuation ratios of Expleo Solutions Ltd vs historical?
The current P/E ratio of 14.03 is lower than its historical median of 22.66, 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 14.03 22.66 47.38
Price to Book 2.08 4.27 2.64
Price to Sales 1.38 2.51 4.79
EV to EBITDA 6.22 12.53 16.75

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×