Check Before You Invest : IZMO Ltd

Q: Which industry/sub-sector does IZMO Ltd belong to?

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

Q: Is IZMO Ltd a good quality company?

IZMO Ltd is a weak quality company, based on a inconsistent 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: Is IZMO Ltd undervalued or overvalued?

IZMO 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. Price to Earnings, Current: 1456.58, Historic Median: 27.23. Price to Book, Current: 4.95, Historic Median: 1.74. Price to Sales, Current: 23.38, Historic Median: 8.26. EV to EBITDA, Current: 267.08, Historic Median: 60.28

Q: Is IZMO Ltd a good buy now?

IZMO 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

Q: Revenue growth of IZMO Ltd?

IZMO Ltd revenue growth is 10% for FY-2025, which is below its 5-year CAGR of 13.46%, indicating slower growth.

Q: Gross Profit margin of IZMO Ltd?

IZMO Ltd Gross profit margin which is the profit after deduction of direct costs, is 70.4% for FY-2025, which is above its 5-year median of 5.6%, indicating increasing margins.

Q: Operating Profit Margin of IZMO Ltd?

IZMO Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.33% for FY-2025, which is below its 5-year median of 3.67% indicating decreasing margins.

Q: Net Profit Margin of IZMO Ltd?

IZMO Ltd Net Profit Margin is 52.15% for FY-2025, is above its 5-year median of 0.45%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 70.4, Historic Median: 5.6. Operating Profit Margin (%), Current: 2.33, Historic Median: 3.67. Net Profit Margin (%), Current: 52.15, Historic Median: 0.45

Q: Return on Asset of IZMO Ltd?

IZMO Ltd Return on Asset is 11.39%, which is above its 5-year historical median of 0.09%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of IZMO Ltd?

IZMO Ltd Return on capital employed is 14.93% for FY-2025, which is above its 5-year historical median of 0.65%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : IZMO Ltd

BSE: 532341 NSE: IZMO ISIN: INE848A01014

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

Snapshot

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

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

Q.2 Is IZMO Ltd a good quality company?

IZMO Ltd is a weak quality company, based on a inconsistent 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 IZMO Ltd undervalued or overvalued?

IZMO 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	1456.58	27.23
Price to Book	4.95	1.74
Price to Sales	23.38	8.26
EV to EBITDA	267.08	60.28

Q.4 Is IZMO Ltd a good buy now?

IZMO 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

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 IZMO Ltd?

IZMO Ltd revenue growth is 10% for FY-2025, which is below its 5-year CAGR of 13.46%, indicating slower growth.

Q.2 Gross Profit margin of IZMO Ltd?

IZMO Ltd Gross profit margin which is the profit after deduction of direct costs, is 70.4% for FY-2025, which is above its 5-year median of 5.6%, indicating increasing margins.

Q.3 Operating Profit Margin of IZMO Ltd?

IZMO Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.33% for FY-2025, which is below its 5-year median of 3.67% indicating decreasing margins.

Q.4 Net Profit Margin of IZMO Ltd?

IZMO Ltd Net Profit Margin is 52.15% for FY-2025, is above its 5-year median of 0.45%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	70.4	5.6
Operating Profit Margin (%)	2.33	3.67
Net Profit Margin (%)	52.15	0.45

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of IZMO Ltd?

IZMO Ltd Return on Asset is 11.39%, which is above its 5-year historical median of 0.09%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of IZMO Ltd?

IZMO Ltd Return on capital employed is 14.93% for FY-2025, which is above its 5-year historical median of 0.65%. 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 IZMO Ltd?

IZMO Ltd Return on equity is 12.62% for FY-2025, which is above its 5-year historical median of 0.1%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of IZMO Ltd?

IZMO Ltd Cash conversion cycle is 165 days, above its 5-year historical median of 58 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)	0.22	0.19
ROE (%)	12.62	0.1
ROCE (%)	14.93	0.65
Cash Conversion Cycle	165 days	58 days

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

Q.9 Debt to Equity ratio of IZMO Ltd?

IZMO 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 IZMO Ltd?

IZMO Ltd Debt to cash flow from operations is -0.1, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of IZMO Ltd?

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

Promoters hold 34.79% of the IZMO Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

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

IZMO Ltd revenue CAGR is 13.46%, compared to the industry median CAGR of 3.17%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	10	3.2
Gross Profit Growth (%)	1,550	18.4
Operating Profit Growth (%)	-50	18.8
Net Profit Growth (%)	0	21.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.22	0.46
ROE (%)	12.62	4.22
ROCE (%)	14.93	6.49
Cash Conversion Cycle (days)	164.6	36

Valuation & price assessment

Q.1 Stock return of IZMO Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 30% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	30%	51.5%	73.6%	154.5%

Q.2 Valuation ratios of IZMO Ltd vs historical?

The current P/E ratio of 1456.58 is higher than its historical median of 27.23, 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	1456.58	27.23	47.38
Price to Book	4.95	1.74	2.64
Price to Sales	23.38	8.26	4.79
EV to EBITDA	267.08	60.28	16.75

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Check Before You Invest : IZMO Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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