Check Before You Invest : Meta Infotech Ltd

BSE: 544441 NSE: ISIN: INE162901016

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

Snapshot

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

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

Q.2 Is Meta Infotech Ltd a good quality company?

Meta Infotech Ltd is a average quality company, based on a somewhat consistent 4-year financial track record.

Q.3 Is Meta Infotech Ltd undervalued or overvalued?

Meta Infotech Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Meta Infotech Ltd a good buy now?

Meta Infotech 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 Meta Infotech Ltd?

Meta Infotech Ltd revenue growth is 43.8% for FY-2025, which is above its 3-year CAGR of 42.11%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Meta Infotech Ltd?

Meta Infotech Ltd Return on capital employed is 45.36% for FY-2025, which is in line with its 3-year historical median of 45.36%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Meta Infotech Ltd?

Meta Infotech Ltd Return on Asset is 21.46%, which is above its 3-year historical median of 15.52%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Meta Infotech Ltd?

Meta Infotech Ltd Return on equity is 38.38% for FY-2025, which is in line with its 3-year historical median of 40.22%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Meta Infotech Ltd?

Meta Infotech Ltd Cash conversion cycle is 2 days, above its 3-year historical median of -59 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover	3.28	2.25
ROE	38.38	40.22
ROCE	45.36	45.36
Cash Conversion Cycle	2 days	-59 days

Q.6 Gross Profit margin of Meta Infotech Ltd?

Meta Infotech Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.4% for FY-2025, which is above its 3-year median of 10.2%, indicating increasing margins.

Q.7 Operating Profit Margin of Meta Infotech Ltd?

Meta Infotech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.45% for FY-2025, which is above its 3-year median of 10.9% indicating increasing margins.

Q.8 Net Profit Margin of Meta Infotech Ltd?

Meta Infotech Ltd Net Profit Margin is 6.54% for FY-2025, is in line with with its 3-year median of 6.54%, indicating stable margins.

	Current Level	3-year Historic Median
Gross Profit Margin	11.4	10.2
Operating Profit Margin	11.45	10.9
Net Profit Margin	6.54	6.54

Q.9 Debt to Equity ratio of Meta Infotech Ltd?

Meta Infotech Ltd Debt-to-Equity ratio is 0.39, which is above with the industry average of 0.11, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Meta Infotech Ltd?

Meta Infotech Ltd Debt to cash flow from operations is -1.33, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Meta Infotech Ltd?

Promoters hold 69.89% of the Meta Infotech Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Meta Infotech Ltd vs industry peers?

Meta Infotech Ltd revenue CAGR is 42.11%, compared to the industry median CAGR of 14.77%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	43.8	14.8
Gross Profit Growth	56.3	26
Operating Profit Growth	56.3	24.1
Net Profit Growth	27.3	NAN

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	3.28	0.6
ROE	38.38	6.54
ROCE	45.36	8.68
Cash Conversion Cycle (days)	2.13	53

Valuation & price assessment

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

Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

Q.3 Valuation ratios of Meta Infotech Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	11.09	15.42	45.52
Price to Book	1.31	1.83	2.77
Price to Sales	0.73	1.01	5.01
EV to EBITDA	6.79	9.19	17.23

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