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MoneyWorks4Me

Check Before You Invest : Mafia Trends Ltd

BSE: 543613 NSE: ISIN: INE0KQQ01011
  |   Sector:  Retail   |   Industry:  Retailing

Snapshot

Q.1 Which industry/sub-sector does Mafia Trends Ltd belong to?
Mafia Trends Ltd belongs to the Retail sector, operating specifically within the Retailing segment.
Q.2 Is Mafia Trends Ltd a good quality company?
Mafia Trends Ltd is a quality company, based on a 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 Mafia Trends Ltd undervalued or overvalued?
Mafia Trends Ltd appears Undervalued, as its key valuation ratios are lower 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 7.6 17.94
Price to Book 0.39 0.86
Price to Sales 0.39 0.89
EV to EBITDA 5.46 7.93
Q.4 Is Mafia Trends Ltd a good buy now?
Mafia Trends 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 Mafia Trends Ltd?
Mafia Trends Ltd revenue growth is 20.4% for FY-2025, which is above its 5-year CAGR of -7.02%, indicating faster growth.

Q.2 Gross Profit margin of Mafia Trends Ltd?
Mafia Trends Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.2% for FY-2025, which is below its 5-year median of 7.6%, indicating decreasing margins.

Q.3 Operating Profit Margin of Mafia Trends Ltd?
Mafia Trends Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.41% for FY-2025, which is above its 5-year median of 8.43% indicating increasing margins.

Q.4 Net Profit Margin of Mafia Trends Ltd?
Mafia Trends Ltd Net Profit Margin is 5.12% for FY-2025, is in line with its 5-year median of 5.12%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 7.2 7.6
Operating Profit Margin (%) 9.41 8.43
Net Profit Margin (%) 5.12 5.12

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Mafia Trends Ltd?
Mafia Trends Ltd Return on Asset is 2.69%, which is in line with its 5-year historical median of 2.69%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Mafia Trends Ltd?
Mafia Trends Ltd Return on capital employed is 7.57% for FY-2025, which is below its 5-year historical median of 8.96%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Mafia Trends Ltd?
Mafia Trends Ltd Return on equity is 5.26% for FY-2025, which is in line with its 5-year historical median of 5.26%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Mafia Trends Ltd?
Mafia Trends Ltd Cash conversion cycle is 219 days, above its 5-year historical median of 177 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) 0.53 0.53
ROE (%) 5.26 5.26
ROCE (%) 7.57 8.96
Cash Conversion Cycle 219 days 177 days

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

Q.9 Debt to Equity ratio of Mafia Trends Ltd?
Mafia Trends Ltd Debt-to-Equity ratio is 0.52, which is above the industry average of 0.25, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Mafia Trends Ltd?
Mafia Trends Ltd Debt to cash flow from operations is -2.02, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Mafia Trends Ltd?

Q.1 Promoter shareholding and pledge status of Mafia Trends Ltd?
Promoters hold 12.13% of the Mafia Trends Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Mafia Trends Ltd vs industry peers?
Mafia Trends Ltd revenue CAGR is -7.02%, compared to the industry median CAGR of 0.00%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 20.4 0
Gross Profit Growth (%) 14 19.8
Operating Profit Growth (%) 36.4 16.2
Net Profit Growth (%) 24.2 18.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.53 1.11
ROE (%) 5.26 3.58
ROCE (%) 7.57 11.9
Cash Conversion Cycle (days) 219.07 38

Valuation & price assessment

Q.1 Stock return of Mafia Trends Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of -23.43% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - -23.4% -46.6%
Q.2 Valuation ratios of Mafia Trends Ltd vs historical?
The current P/E ratio of 7.6 is lower than its historical median of 17.94, indicating that the stock is trading below 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 7.6 17.94 37.15
Price to Book 0.39 0.86 2.76
Price to Sales 0.39 0.89 1.31
EV to EBITDA 5.46 7.93 14.00

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