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Check Before You Invest : Kapston Services Ltd

BSE: 0 NSE: KAPSTON ISIN: INE542Z01028
  |   Sector:  Miscellaneous   |   Industry:  Professional Services

Snapshot

Q.1 Which industry/sub-sector does Kapston Services Ltd belong to?
Kapston Services Ltd belongs to the Miscellaneous sector, operating specifically within the Professional Services segment.
Q.2 Is Kapston Services Ltd a good quality company?
Kapston Services Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Kapston Services Ltd undervalued or overvalued?
Kapston Services Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Kapston Services Ltd a good buy now?
Kapston Services 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 Kapston Services Ltd?
Kapston Services Ltd revenue growth is 32.4% for FY-2025 , which is above its 5 year CAGR of 26.4% , indicating faster growth.
Q.2 Gross Profit margin of Kapston Services Ltd?
Kapston Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.8% for FY-2025 , which is above its 5 year median of 2.6% , indicating increasing margins.
Q.3 Operating Profit Margin of Kapston Services Ltd?
Kapston Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.56% for FY-2025 , which is in line with its 5 year median of 4.56% indicating stable margins.
Q.4 Net Profit Margin of Kapston Services Ltd?
Kapston Services Ltd Net Profit Margin is 2.59% for FY-2025 , is above with its 5 year median of 2.42%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 2.8 2.6
Operating Profit Margin 4.56 4.56
Net Profit Margin 2.59 2.42
Q.5 Return on Asset of Kapston Services Ltd?
Kapston Services Ltd Return on Asset is 7.39%, which is above its 5 year historical median of 5.4%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Kapston Services Ltd?
Kapston Services Ltd Return on equity is 22.23% for FY-2025 , which is above its historical median of 13.42%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Kapston Services Ltd?
Kapston Services Ltd Return on capital employed is 13.15% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Kapston Services Ltd?
Kapston Services Ltd Cash conversion cycle is 78 days, below its historical median of 92 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 2.85 2.41
ROE 22.23 13.42
ROCE 13.15 12.8
Cash Conversion Cycle 78 days 92 days
Q.9 Debt to Equity ratio of Kapston Services Ltd?
Kapston Services Ltd Debt-to-Equity ratio is 1.81 , which is above with the industry average of 0.15 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Kapston Services Ltd?
Kapston Services Ltd Debt to cash flow from operations is -20.18 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Kapston Services Ltd?
Promoters hold 72.87% of the Kapston Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Kapston Services Ltd vs industry peers?
Kapston Services Ltd revenue CAGR is 26.41% , compared to the industry median CAGR of 0% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 688.7 33.8
Gross Profit 19.3 3.9
Operating Profit 31 3.8
Net Profit 18 3
Operating Efficiency
Current Level Industry Median
Asset Turnover 2.85 1.39
ROE 22.23 12.58
ROCE 13.15 12.8
Cash Conversion Cycle (days) 78.44 53

Valuation & price assessment

Q.1 Stock return of Kapston Services Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 23.23% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 23.2% 26.8% 28.8%
Q.3 Valuation ratios of Kapston Services Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 32.51 27.68 51.09
Price to Book 7.56 2.96 2.52
Price to Sales 1.08 0.43 1.78
EV to EBITDA 24.75 14.35 16.71

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