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Check Before You Invest : Groarc Industries India Ltd

BSE: 532315 NSE: ISIN: INE042B01012
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does Groarc Industries India Ltd belong to?
Groarc Industries India Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is Groarc Industries India Ltd a good quality company?
Groarc Industries India Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Groarc Industries India Ltd undervalued or overvalued?
Groarc Industries India Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Groarc Industries India Ltd a good buy now?
Groarc Industries India 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

Q.1 Revenue growth of Groarc Industries India Ltd?
Groarc Industries India Ltd revenue growth is -14.5% for FY-2025 , which is below its 5 year CAGR of 166.3% , indicating slower growth.
Q.2 Gross Profit margin of Groarc Industries India Ltd?
Groarc Industries India Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.5% for FY-2025 , which is above its 5 year median of 1.6% , indicating increasing margins.
Q.3 Operating Profit Margin of Groarc Industries India Ltd?
Groarc Industries India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.72% for FY-2025 , which is above its 5 year median of 0.1% indicating increasing margins.
Q.4 Net Profit Margin of Groarc Industries India Ltd?
Groarc Industries India Ltd Net Profit Margin is 2.5% for FY-2025 , is above with its 5 year median of 1.06%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 3.5 1.6
Operating Profit Margin 1.72 0.1
Net Profit Margin 2.5 1.06
Q.5 Return on Asset of Groarc Industries India Ltd?
Groarc Industries India Ltd Return on Asset is 2.14%, which is above its 5 year historical median of 1.72%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Groarc Industries India Ltd?
Groarc Industries India Ltd Return on equity is 2.21% for FY-2025 , which is in line with its historical median of 2.21%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Groarc Industries India Ltd?
Groarc Industries India Ltd Return on capital employed is 2.91% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Groarc Industries India Ltd?
Groarc Industries India Ltd Cash conversion cycle is 143 days, below its historical median of 143 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.86 1.04
ROE 2.21 2.21
ROCE 2.91 2.41
Cash Conversion Cycle 143 days 143 days
Q.9 Debt to Equity ratio of Groarc Industries India Ltd?
Groarc Industries India Ltd Debt-to-Equity ratio is 0.04 , which is above with the industry average of 0.01 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Groarc Industries India Ltd?
Groarc Industries India Ltd Debt to cash flow from operations is 0.25 , which is at a healthy level.

Ownership & governance

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

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Groarc Industries India Ltd vs industry peers?
Groarc Industries India Ltd revenue CAGR is 166.25% , compared to the industry median CAGR of 2.87% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 34.8 23.3
Gross Profit 1.2 1.8
Operating Profit 0.6 1
Net Profit 0.9 0.8
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.86 0.44
ROE 2.21 3.97
ROCE 2.91 6.41
Cash Conversion Cycle (days) 143.12 36

Valuation & price assessment

Q.1 Stock return of Groarc Industries India Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 11.1% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 11.1% 23.4% -14.7% 2.6%
Q.3 Valuation ratios of Groarc Industries India Ltd vs historical?
The current P/E is similar that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 0.00 22.96
Price to Book 0.34 0.46 2.61
Price to Sales 0.56 0.28 4.40
EV to EBITDA -141.7 -106.03 17.20

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