Check Before You Invest : International Gemological Institute Ltd

Snapshot

Q.1 Which industry/sub-sector does International Gemological Institute Ltd belong to?

International Gemological Institute Ltd belongs to the Miscellaneous sector, operating specifically within the Business Support segment.

Q.2 Is International Gemological Institute Ltd a good quality company?

International Gemological Institute Ltd is a average quality company, based on a somewhat consistent 4-year financial track record.

Q.3 Is International Gemological Institute Ltd undervalued or overvalued?

International Gemological Institute Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is International Gemological Institute Ltd a good buy now?

International Gemological Institute 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 International Gemological Institute Ltd?

International Gemological Institute Ltd revenue growth is 23.5% for FY-2024, which is below its 3-year CAGR of 29.14%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of International Gemological Institute Ltd?

International Gemological Institute Ltd Return on capital employed is 43.59% for FY-2024, which is below its 3-year historical median of 105.24%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of International Gemological Institute Ltd?

International Gemological Institute Ltd Return on Asset is 28.8%, which is below its 3-year historical median of 64.53%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of International Gemological Institute Ltd?

International Gemological Institute Ltd Return on equity is 32.5% for FY-2024, which is below its 3-year historical median of 76.89%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of International Gemological Institute Ltd?

International Gemological Institute Ltd Cash conversion cycle is -11 days, below its 3-year historical median of 7 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover	0.53	1.28
ROE	32.5	76.89
ROCE	43.59	105.24
Cash Conversion Cycle	-11 days	7 days

Q.6 Gross Profit margin of International Gemological Institute Ltd?

International Gemological Institute Ltd Gross profit margin which is the profit after deduction of direct costs, is 73.9% for FY-2024, which is in line with its 3-year median of 70.7%, indicating stable margins.

Q.7 Operating Profit Margin of International Gemological Institute Ltd?

International Gemological Institute Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 72.84% for FY-2024, which is in line with its 3-year median of 71.18% indicating stable margins.

Q.8 Net Profit Margin of International Gemological Institute Ltd?

International Gemological Institute Ltd Net Profit Margin is 55.93% for FY-2024, is above with its 3-year median of 51.82%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin	73.9	70.7
Operating Profit Margin	72.84	71.18
Net Profit Margin	55.93	51.82

Q.9 Debt to Equity ratio of International Gemological Institute Ltd?

International Gemological Institute Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.13, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of International Gemological Institute Ltd?

International Gemological Institute Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of International Gemological Institute Ltd?

Promoters hold 76.55% of the International Gemological Institute Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of International Gemological Institute Ltd vs industry peers?

International Gemological Institute Ltd revenue CAGR is 29.14%, compared to the industry median CAGR of 19.93%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	23.5	19.9
Gross Profit Growth	30.1	22.5
Operating Profit Growth	26.3	23
Net Profit Growth	33	18.1

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	0.53	0.45
ROE	32.5	12.21
ROCE	43.59	13.07
Cash Conversion Cycle (days)	-10.83	45

Valuation & price assessment

Q.1 Stock return of International Gemological Institute Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of 2.72% 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%

Q.3 Valuation ratios of International Gemological Institute Ltd vs historical?

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

Q.4 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	27.49	33.92	30.30
Price to Book	5.96	5.97	2.83
Price to Sales	15.73	18.97	5.57
EV to EBITDA	19.53	24.25	11.10

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