Check Before You Invest : Globalspace Technologies Ltd

BSE: 540654 NSE: ISIN: INE632W01016

| Sector: IT & ITES | Industry: IT - Software

Snapshot

Q.1 Which industry/sub-sector does Globalspace Technologies Ltd belong to?

Globalspace Technologies Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Globalspace Technologies Ltd a good quality company?

Globalspace Technologies Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Globalspace Technologies Ltd undervalued or overvalued?

Globalspace Technologies Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Globalspace Technologies Ltd a good buy now?

Globalspace Technologies 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 Globalspace Technologies Ltd?

Globalspace Technologies Ltd revenue growth is 0.9% for FY-2025, which is below its 5-year CAGR of 3.31%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Globalspace Technologies Ltd?

Globalspace Technologies Ltd Return on capital employed is -1.69% for FY-2025, which is below its 5-year historical median of 2.89%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Globalspace Technologies Ltd?

Globalspace Technologies Ltd Return on Asset is -2.68%, which is below its 5-year historical median of 0.01%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Globalspace Technologies Ltd?

Globalspace Technologies Ltd Return on equity is -3.31% for FY-2025, which is below its 5-year historical median of 0.02%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Globalspace Technologies Ltd?

Globalspace Technologies Ltd Cash conversion cycle is 113 days, below its 5-year historical median of 221 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.43	0.43
ROE	-3.31	0.02
ROCE	-1.69	2.89
Cash Conversion Cycle	113 days	221 days

Q.6 Gross Profit margin of Globalspace Technologies Ltd?

Globalspace Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.8% for FY-2025, which is below its 5-year median of 20.7%, indicating decreasing margins.

Q.7 Operating Profit Margin of Globalspace Technologies Ltd?

Globalspace Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.51% for FY-2025, which is below its 5-year median of 30.89% indicating decreasing margins.

Q.8 Net Profit Margin of Globalspace Technologies Ltd?

Globalspace Technologies Ltd Net Profit Margin is -6.26% for FY-2025, is below with its 5-year median of 0.08%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	8.8	20.7
Operating Profit Margin	12.51	30.89
Net Profit Margin	-6.26	0.08

Q.9 Debt to Equity ratio of Globalspace Technologies Ltd?

Globalspace Technologies Ltd Debt-to-Equity ratio is 0.18, which is above with the industry average of 0.11, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Globalspace Technologies Ltd?

Globalspace Technologies Ltd Debt to cash flow from operations is -4.78, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Globalspace Technologies Ltd?

Promoters hold 55.84% of the Globalspace Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Globalspace Technologies Ltd vs industry peers?

Globalspace Technologies Ltd revenue CAGR is 3.31%, compared to the industry median CAGR of 10.86%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	0.9	10.9
Gross Profit Growth	-18.7	18.3
Operating Profit Growth	-19.7	18.8
Net Profit Growth	0	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.43	0.5
ROE	-3.31	5.83
ROCE	-1.69	6.79
Cash Conversion Cycle (days)	113.35	47

Valuation & price assessment

Q.1 Stock return of Globalspace Technologies Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of -2.7% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-2.7%	12.1%	51.5%

Q.3 Valuation ratios of Globalspace Technologies Ltd vs historical?

The current P/E is higher 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	104.69	65.07	47.37
Price to Book	1.61	1.20	2.63
Price to Sales	3.21	2.50	4.79
EV to EBITDA	23.57	15.28	16.48

Check more companies

1. Tata Elxsi

2. Tata Technologies

3. KPIT Technologies

4. Fractal Analytics

5. Zensar Technologies

6. Intellect Design

7. Birlasoft

8. Nazara Technologies

9. Cyient

10. Amagi Media Labs

Check trending companies

1. Sheela Foam Ltd.

2. TVS Motor Company Ltd.

3. Pidilite Industries Ltd.

4. Netweb Technologies India Ltd.

5. Gabriel India Ltd.