Check Before You Invest : Globe Enterprises (India) Ltd

Snapshot

Q.1 Which industry/sub-sector does Globe Enterprises (India) Ltd belong to?

Globe Enterprises (India) Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q.2 Is Globe Enterprises (India) Ltd a good quality company?

Globe Enterprises (India) Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Globe Enterprises (India) Ltd undervalued or overvalued?

Globe Enterprises (India) Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Globe Enterprises (India) Ltd a good buy now?

Globe Enterprises (India) Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Globe Enterprises (India) Ltd?

Globe Enterprises (India) Ltd revenue growth is 22.4% for FY-2025, which is above its 5-year CAGR of 14.61%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Globe Enterprises (India) Ltd?

Globe Enterprises (India) Ltd Return on capital employed is 9.72% for FY-2025, which is below its 5-year historical median of 11.47%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Globe Enterprises (India) Ltd?

Globe Enterprises (India) Ltd Return on Asset is 2.2%, which is in line with its 5-year historical median of 2.17%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Globe Enterprises (India) Ltd?

Globe Enterprises (India) Ltd Return on equity is 5.31% for FY-2025, which is below its 5-year historical median of 7.27%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Globe Enterprises (India) Ltd?

Globe Enterprises (India) Ltd Cash conversion cycle is 126 days, above its 5-year historical median of 117 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	1.69	1.62
ROE	5.31	7.27
ROCE	9.72	11.47
Cash Conversion Cycle	126 days	117 days

Q.6 Gross Profit margin of Globe Enterprises (India) Ltd?

Globe Enterprises (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.1% for FY-2025, which is in line with its 5-year median of 2.1%, indicating stable margins.

Q.7 Operating Profit Margin of Globe Enterprises (India) Ltd?

Globe Enterprises (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.53% for FY-2025, which is in line with its 5-year median of 4.49% indicating stable margins.

Q.8 Net Profit Margin of Globe Enterprises (India) Ltd?

Globe Enterprises (India) Ltd Net Profit Margin is 1.3% for FY-2025, is in line with with its 5-year median of 1.3%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	2.1	2.1
Operating Profit Margin	4.53	4.49
Net Profit Margin	1.3	1.3

Q.9 Debt to Equity ratio of Globe Enterprises (India) Ltd?

Globe Enterprises (India) Ltd Debt-to-Equity ratio is 0.89, which is above with the industry average of 0.5, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Globe Enterprises (India) Ltd?

Globe Enterprises (India) Ltd Debt to cash flow from operations is -4.04, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Globe Enterprises (India) Ltd?

Promoters hold 34.35% of the Globe Enterprises (India) Ltd, with 16.81% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Globe Enterprises (India) Ltd vs industry peers?

Globe Enterprises (India) Ltd revenue CAGR is 14.61%, compared to the industry median CAGR of 4.23%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	22.4	4.2
Gross Profit Growth	-	8.6
Operating Profit Growth	20	7.3
Net Profit Growth	16.7	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.69	0.98
ROE	5.31	6.1
ROCE	9.72	7.6
Cash Conversion Cycle (days)	126.47	109

Valuation & price assessment

Q.1 Stock return of Globe Enterprises (India) Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of -44.86% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-44.9%	-5.4%	16.5%

Q.3 Valuation ratios of Globe Enterprises (India) Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 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	17.67	17.33	19.97
Price to Book	0.72	1.08	1.32
Price to Sales	0.21	0.22	1.06
EV to EBITDA	9.45	9.44	9.32

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