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Check Before You Invest : ITCONS E-Solutions Ltd

BSE: 543806 NSE: ISIN: INE0O6A01019
  |   Sector:  Miscellaneous   |   Industry:  Professional Services

Snapshot

Q.1 Which industry/sub-sector does ITCONS E-Solutions Ltd belong to?
ITCONS E-Solutions Ltd belongs to the Miscellaneous sector, operating specifically within the Professional Services segment.
Q.2 Is ITCONS E-Solutions Ltd a good quality company?
ITCONS E-Solutions Ltd is a average quality company, based on a somewhat consistent 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 ITCONS E-Solutions Ltd undervalued or overvalued?
ITCONS E-Solutions 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 5-year
Historic Median
Price to Earnings 101.2 62.85
Price to Book 9.82 6.97
Price to Sales 5.87 4.04
EV to EBITDA 62.06 33.79
Q.4 Is ITCONS E-Solutions Ltd a good buy now?
ITCONS E-Solutions 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 ITCONS E-Solutions Ltd?
ITCONS E-Solutions Ltd revenue growth is 96.4% for FY-2025, which is above its 5-year CAGR of 46.34%, indicating faster growth.

Q.2 Gross Profit margin of ITCONS E-Solutions Ltd?
ITCONS E-Solutions Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.8% for FY-2025, which is in line with its 5-year median of 8.8%, indicating stable margins.

Q.3 Operating Profit Margin of ITCONS E-Solutions Ltd?
ITCONS E-Solutions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.5% for FY-2025, which is below its 5-year median of 8.9% indicating decreasing margins.

Q.4 Net Profit Margin of ITCONS E-Solutions Ltd?
ITCONS E-Solutions Ltd Net Profit Margin is 5.8% for FY-2025, is in line with its 5-year median of 6.1%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 8.8 8.8
Operating Profit Margin (%) 7.5 8.9
Net Profit Margin (%) 5.8 6.1

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of ITCONS E-Solutions Ltd?
ITCONS E-Solutions Ltd Return on Asset is 9.53%, which is below its 5-year historical median of 11.6%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of ITCONS E-Solutions Ltd?
ITCONS E-Solutions Ltd Return on capital employed is 17.12% for FY-2025, which is below its 5-year historical median of 20.88%. 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 ITCONS E-Solutions Ltd?
ITCONS E-Solutions Ltd Return on equity is 18.99% for FY-2025, which is in line with its 5-year historical median of 18.99%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of ITCONS E-Solutions Ltd?
ITCONS E-Solutions Ltd Cash conversion cycle is 96 days, above its 5-year historical median of 61 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 (x) 1.64 2.44
ROE (%) 18.99 18.99
ROCE (%) 17.12 20.88
Cash Conversion Cycle 96 days 61 days

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

Q.9 Debt to Equity ratio of ITCONS E-Solutions Ltd?
ITCONS E-Solutions Ltd Debt-to-Equity ratio is 0.18, which is above the industry average of 0.08, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of ITCONS E-Solutions Ltd?
ITCONS E-Solutions Ltd Debt to cash flow from operations is -0.16, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of ITCONS E-Solutions Ltd?

Q.1 Promoter shareholding and pledge status of ITCONS E-Solutions Ltd?
Promoters hold 64.52% of the ITCONS E-Solutions Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does ITCONS E-Solutions Ltd performance compare with that of its Peers?

Q.1 Revenue growth of ITCONS E-Solutions Ltd vs industry peers?
ITCONS E-Solutions Ltd revenue CAGR is 46.34%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 96.4 -
Gross Profit Growth (%) 66.7 14.9
Operating Profit Growth (%) 33.3 9.3
Net Profit Growth (%) 50 16.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.64 1.38
ROE (%) 18.99 12.58
ROCE (%) 17.12 12.8
Cash Conversion Cycle (days) 95.7 54

Valuation & price assessment

Q.1 Stock return of ITCONS E-Solutions Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of 93.46% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - 93.5% -32.3%
Q.2 Valuation ratios of ITCONS E-Solutions Ltd vs historical?
The current P/E ratio of 101.2 is higher than its historical median of 62.85, indicating that the stock is trading above its historical average valuation.
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 101.2 62.85 26.54
Price to Book 9.82 6.97 2.42
Price to Sales 5.87 4.04 1.70
EV to EBITDA 62.06 33.79 15.30

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