MoneyWorks4Me

Check Before You Invest : Gretex Corporate Services Ltd

BSE: 543324 NSE: GCSL ISIN: INE199P01028
  |   Sector:  Miscellaneous   |   Industry:  Professional Services

Snapshot

Q.1 Which industry/sub-sector does Gretex Corporate Services Ltd belong to?
Gretex Corporate Services Ltd belongs to the Miscellaneous sector, operating specifically within the Professional Services segment.
Q.2 Is Gretex Corporate Services Ltd a good quality company?
Gretex Corporate Services 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 Gretex Corporate Services Ltd undervalued or overvalued?
Gretex Corporate Services 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 5-year
Historic Median
Price to Earnings 56.77 57.30
Price to Book 7.31 5.40
Price to Sales 7.97 26.37
EV to EBITDA 26.53 40.49
Q.4 Is Gretex Corporate Services Ltd a good buy now?
Gretex Corporate Services 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 Gretex Corporate Services Ltd?
Gretex Corporate Services Ltd revenue growth is -31% for FY-2026, which is below its 5-year CAGR of 126.72%, indicating slower growth.

Q.2 Gross Profit margin of Gretex Corporate Services Ltd?
Gretex Corporate Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 23.2% for FY-2026, which is below its 5-year median of 40.7%, indicating decreasing margins.

Q.3 Operating Profit Margin of Gretex Corporate Services Ltd?
Gretex Corporate Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 23.99% for FY-2026, which is below its 5-year median of 34.63% indicating decreasing margins.

Q.4 Net Profit Margin of Gretex Corporate Services Ltd?
Gretex Corporate Services Ltd Net Profit Margin is 15.48% for FY-2026, is below its 5-year median of 33.62%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 23.2 40.7
Operating Profit Margin (%) 23.99 34.63
Net Profit Margin (%) 15.48 33.62

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Gretex Corporate Services Ltd?
Gretex Corporate Services Ltd Return on Asset is 10.83%, which is in line with its 5-year historical median of 10.83%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Gretex Corporate Services Ltd?
Gretex Corporate Services Ltd Return on capital employed is 21.85% for FY-2026, which is in line with its 5-year historical median of 21.85%. 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 Gretex Corporate Services Ltd?
Gretex Corporate Services Ltd Return on equity is 15.58% for FY-2026, which is in line with its 5-year historical median of 15.58%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Gretex Corporate Services Ltd?
Gretex Corporate Services Ltd Cash conversion cycle is 218 days, above its 5-year historical median of 88 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) 0.7 0.7
ROE (%) 15.58 15.58
ROCE (%) 21.85 21.85
Cash Conversion Cycle 218 days 88 days

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

Q.9 Debt to Equity ratio of Gretex Corporate Services Ltd?
Gretex Corporate Services Ltd Debt-to-Equity ratio is 0.06, which is lower the industry average of 0.08, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Gretex Corporate Services Ltd?
Gretex Corporate Services Ltd Debt to cash flow from operations is -0.37, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Gretex Corporate Services Ltd?

Q.1 Promoter shareholding and pledge status of Gretex Corporate Services Ltd?
Promoters hold 61.64% of the Gretex Corporate Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Gretex Corporate Services Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Gretex Corporate Services Ltd vs industry peers?
Gretex Corporate Services Ltd revenue CAGR is 126.72%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -31 0
Gross Profit Growth (%) 412.5 15.2
Operating Profit Growth (%) 4,100 13.8
Net Profit Growth (%) 1,300 18.3
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.7 1.22
ROE (%) 15.58 12.02
ROCE (%) 21.85 13.78
Cash Conversion Cycle (days) 218.27 53

Valuation & price assessment

Q.1 Stock return of Gretex Corporate Services Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 121.29% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 121.3% 74.8% 137.8%
Q.2 Valuation ratios of Gretex Corporate Services Ltd vs historical?
The current P/E ratio of 56.77 is in line with than its historical median of 57.30, indicating that the stock is trading near 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 56.77 57.30 26.54
Price to Book 7.31 5.40 2.42
Price to Sales 7.97 26.37 1.70
EV to EBITDA 26.53 40.49 15.30

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