Check Before You Invest : Incap Ltd

Snapshot

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

Incap Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electronics - Components segment.

Q.2 Is Incap Ltd a good quality company?

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

Q.3 Is Incap Ltd undervalued or overvalued?

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

Q.4 Is Incap Ltd a good buy now?

Incap 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 Incap Ltd?

Incap Ltd revenue growth is 73.5% for FY-2025, which is above its 5-year CAGR of -2.61%, indicating faster growth.

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

Incap Ltd Return on capital employed is 7.59% for FY-2025, which is above its 5-year historical median of 6.31%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Incap Ltd?

Incap Ltd Return on Asset is 2.76%, which is above its 5-year historical median of 2.39%, indicating improved asset utilization efficiency.

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

Incap Ltd Return on equity is 4.95% for FY-2025, which is above its 5-year historical median of 4.18%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Incap Ltd?

Incap Ltd Cash conversion cycle is 79 days, above its 5-year historical median of -45 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	1.16	0.7
ROE	4.95	4.18
ROCE	7.59	6.31
Cash Conversion Cycle	79 days	-45 days

Q.6 Gross Profit margin of Incap Ltd?

Incap Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.3% for FY-2025, which is below its 5-year median of 6.1%, indicating decreasing margins.

Q.7 Operating Profit Margin of Incap Ltd?

Incap Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.14% for FY-2025, which is above its 5-year median of 3.38% indicating increasing margins.

Q.8 Net Profit Margin of Incap Ltd?

Incap Ltd Net Profit Margin is 2.38% for FY-2025, is below with its 5-year median of 3.15%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	4.3	6.1
Operating Profit Margin	5.14	3.38
Net Profit Margin	2.38	3.15

Q.9 Debt to Equity ratio of Incap Ltd?

Incap Ltd Debt-to-Equity ratio is 0.33, which is in line with the industry average of 0.33, indicating similar to debt levels in the industry.

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

Incap Ltd Debt to cash flow from operations is -2.55, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Incap Ltd?

Promoters hold 66.91% of the Incap Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Incap Ltd vs industry peers?

Incap Ltd revenue CAGR is -2.61%, compared to the industry median CAGR of 9.26%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	73.5	9.3
Gross Profit Growth	10	14.1
Operating Profit Growth	174.6	15.2
Net Profit Growth	19.4	14.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.16	0.83
ROE	4.95	8.53
ROCE	7.59	9.68
Cash Conversion Cycle (days)	79.07	129

Valuation & price assessment

Q.1 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	14.7%	36.5%	40.4%	11.8%

Q.2 Valuation ratios of Incap Ltd vs historical?

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

Q.3 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	87.83	33.87	37.27
Price to Book	3	1.47	3.80
Price to Sales	1.79	1.08	4.14
EV to EBITDA	28.85	17.47	22.41

Q.4 Stock return of Incap Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 14.7% based on the current price.

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