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Check Before You Invest : Identixweb Ltd

BSE: 544388 NSE: ISIN: INE0PA401012
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does Identixweb Ltd belong to?
Identixweb Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is Identixweb Ltd a good quality company?
Identixweb Ltd is a quality company, based on a 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 Identixweb Ltd undervalued or overvalued?
Identixweb 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 3-year
Historic Median
Price to Earnings 18.28 17.84
Price to Book 2.42 2.38
Price to Sales 8.81 8.60
EV to EBITDA 10.63 10.47
Q.4 Is Identixweb Ltd a good buy now?
Identixweb 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

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 Identixweb Ltd?
Identixweb Ltd revenue growth is 34.8% for FY-2025, which is above its 3-year CAGR of 12.44%, indicating faster growth.

Q.2 Gross Profit margin of Identixweb Ltd?
Identixweb Ltd Gross profit margin which is the profit after deduction of direct costs, is 76.6% for FY-2025, which is above its 3-year median of 58.2%, indicating increasing margins.

Q.3 Operating Profit Margin of Identixweb Ltd?
Identixweb Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 71.26% for FY-2025, which is above its 3-year median of 54.77% indicating increasing margins.

Q.4 Net Profit Margin of Identixweb Ltd?
Identixweb Ltd Net Profit Margin is 48.19% for FY-2025, is above its 3-year median of 42.8%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 76.6 58.2
Operating Profit Margin (%) 71.26 54.77
Net Profit Margin (%) 48.19 42.8

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Identixweb Ltd?
Identixweb Ltd Return on Asset is 24.04%, which is below its 3-year historical median of 30%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Identixweb Ltd?
Identixweb Ltd Return on capital employed is 37.82% for FY-2025, which is below its 3-year historical median of 47.31%. 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 Identixweb Ltd?
Identixweb Ltd Return on equity is 33.11% for FY-2025, which is below its 3-year historical median of 35.98%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Identixweb Ltd?
Identixweb Ltd Cash conversion cycle is 60 days, above its 3-year historical median of 14 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 0.5 0.7
ROE (%) 33.11 35.98
ROCE (%) 37.82 47.31
Cash Conversion Cycle 60 days 14 days

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

Q.9 Debt to Equity ratio of Identixweb Ltd?
Identixweb Ltd Debt-to-Equity ratio is 0.02, which is above the industry average of 0.01, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Identixweb Ltd?
Identixweb Ltd Debt to cash flow from operations is 0.1, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Identixweb Ltd?

Q.1 Promoter shareholding and pledge status of Identixweb Ltd?
Promoters hold 62.99% of the Identixweb Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Identixweb Ltd vs industry peers?
Identixweb Ltd revenue CAGR is 12.44%, compared to the industry median CAGR of 9.94%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 34.8 9.9
Gross Profit Growth (%) 77.7 24.3
Operating Profit Growth (%) 75.2 23.4
Net Profit Growth (%) 51.7 22.9
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 0.5 0.53
ROE (%) 33.11 5.88
ROCE (%) 37.82 8.44
Cash Conversion Cycle (days) 59.69 40

Valuation & price assessment

Q.1 Stock return of Identixweb Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 0.94% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - 0.9%
Q.2 Valuation ratios of Identixweb Ltd vs historical?
The current P/E ratio of 18.28 is in line with than its historical median of 17.84, indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 18.28 17.84 46.11
Price to Book 2.42 2.38 2.78
Price to Sales 8.81 8.60 5.02
EV to EBITDA 10.63 10.47 17.30

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