Check Before You Invest : Intellect Design Arena Ltd

BSE: 538835 NSE: INTELLECT ISIN: INE306R01017

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

Snapshot

Q.1 Which industry/sub-sector does Intellect Design Arena Ltd belong to?

Intellect Design Arena Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Intellect Design Arena Ltd a good quality company?

Intellect Design Arena Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Intellect Design Arena Ltd undervalued or overvalued?

Intellect Design Arena Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Intellect Design Arena Ltd a good buy now?

Intellect Design Arena Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Intellect Design Arena Ltd?

Intellect Design Arena Ltd revenue growth is -0.3% for FY-2025, which is below its 5-year CAGR of 13.17%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Intellect Design Arena Ltd?

Intellect Design Arena Ltd Return on capital employed is 17.28% for FY-2025, which is below its 5-year historical median of 20.76%. 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 Intellect Design Arena Ltd?

Intellect Design Arena Ltd Return on Asset is 9.26%, which is below its 5-year historical median of 10.36%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Intellect Design Arena Ltd?

Intellect Design Arena Ltd Return on equity is 13.42% for FY-2025, which is below its 5-year historical median of 15.21%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Intellect Design Arena Ltd?

Intellect Design Arena Ltd Cash conversion cycle is 23 days, above its 5-year historical median of -17 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	0.69	0.8
ROE	13.42	15.21
ROCE	17.28	20.76
Cash Conversion Cycle	23 days	-17 days

Q.6 Gross Profit margin of Intellect Design Arena Ltd?

Intellect Design Arena Ltd Gross profit margin which is the profit after deduction of direct costs, is 24.1% for FY-2025, which is in line with its 5-year median of 23.9%, indicating stable margins.

Q.7 Operating Profit Margin of Intellect Design Arena Ltd?

Intellect Design Arena Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.36% for FY-2025, which is in line with its 5-year median of 21.73% indicating stable margins.

Q.8 Net Profit Margin of Intellect Design Arena Ltd?

Intellect Design Arena Ltd Net Profit Margin is 13.38% for FY-2025, is in line with with its 5-year median of 13.38%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	24.1	23.9
Operating Profit Margin	21.36	21.73
Net Profit Margin	13.38	13.38

Q.9 Debt to Equity ratio of Intellect Design Arena Ltd?

Intellect Design Arena Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.11, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Intellect Design Arena Ltd?

Intellect Design Arena 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 Intellect Design Arena Ltd?

Promoters hold 29.73% of the Intellect Design Arena Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Intellect Design Arena Ltd vs industry peers?

Intellect Design Arena Ltd revenue CAGR is 13.17%, compared to the industry median CAGR of 10.86%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-0.3	10.9
Gross Profit Growth	1.2	19
Operating Profit Growth	-1.5	NAN
Net Profit Growth	3.4	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.69	0.5
ROE	13.42	5.83
ROCE	17.28	6.79
Cash Conversion Cycle (days)	23.27	47

Valuation & price assessment

Q.1 Stock return of Intellect Design Arena Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 14% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	14%	1.2%	17.7%	-6.9%

Q.3 Valuation ratios of Intellect Design Arena Ltd vs historical?

The current P/E is lower 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	28.84	32.66	47.37
Price to Book	3.48	4.82	2.63
Price to Sales	3.56	4.80	4.79
EV to EBITDA	14.12	19.54	16.48

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