Check Before You Invest : Methodhub Software Ltd

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

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

Q: Is Methodhub Software Ltd a good quality company?

Methodhub Software 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: Is Methodhub Software Ltd undervalued or overvalued?

Methodhub Software Ltd appears Somewhat 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. Price to Earnings, Current: 24.16, Historic Median: 32.21. Price to Book, Current: 1.01, Historic Median: 1.37. Price to Sales, Current: 2.71, Historic Median: 3.61. EV to EBITDA, Current: 13.43, Historic Median: 17.88

Q: Is Methodhub Software Ltd a good buy now?

Methodhub Software 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

Q: Gross Profit margin of Methodhub Software Ltd?

Methodhub Software Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.1% for FY-2025, which is above its 3-year median of 12.7%, indicating increasing margins.

Q: Operating Profit Margin of Methodhub Software Ltd?

Methodhub Software Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.55% for FY-2025, which is in line with its 3-year median of 17.66% indicating stable margins.

Q: Net Profit Margin of Methodhub Software Ltd?

Methodhub Software Ltd Net Profit Margin is 11.2% for FY-2025, is in line with its 3-year median of 10.89%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 15.1, Historic Median: 12.7. Operating Profit Margin (%), Current: 17.55, Historic Median: 17.66. Net Profit Margin (%), Current: 11.2, Historic Median: 10.89

Q: Return on Asset of Methodhub Software Ltd?

Methodhub Software Ltd Return on Asset is 12.75%, which is in line with its 3-year historical median of 12.75%, indicating stable asset utilization efficiency.

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

Methodhub Software Ltd Return on capital employed is 25.29% for FY-2025, which is in line with its 3-year historical median of 25.29%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q: Return on Equity (ROE) of Methodhub Software Ltd?

Methodhub Software Ltd Return on equity is 26.7% for FY-2025, which is below its 3-year historical median of 34.2%, indicating the business is making worse use of its shareholders capital.

Check Before You Invest : Methodhub Software Ltd

BSE: 544637 NSE: ISIN: INE0QZR01017

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

Snapshot

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

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

Q.2 Is Methodhub Software Ltd a good quality company?

Methodhub Software 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 Methodhub Software Ltd undervalued or overvalued?

Methodhub Software Ltd appears Somewhat 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	3-year Historic Median
Price to Earnings	24.16	32.21
Price to Book	1.01	1.37
Price to Sales	2.71	3.61
EV to EBITDA	13.43	17.88

Q.4 Is Methodhub Software Ltd a good buy now?

Methodhub Software 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.

Q.1 Gross Profit margin of Methodhub Software Ltd?

Methodhub Software Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.1% for FY-2025, which is above its 3-year median of 12.7%, indicating increasing margins.

Q.2 Operating Profit Margin of Methodhub Software Ltd?

Methodhub Software Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.55% for FY-2025, which is in line with its 3-year median of 17.66% indicating stable margins.

Q.3 Net Profit Margin of Methodhub Software Ltd?

Methodhub Software Ltd Net Profit Margin is 11.2% for FY-2025, is in line with its 3-year median of 10.89%, indicating stable margins.

	Current Level	3-year Historic Median
Gross Profit Margin (%)	15.1	12.7
Operating Profit Margin (%)	17.55	17.66
Net Profit Margin (%)	11.2	10.89

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Methodhub Software Ltd?

Methodhub Software Ltd Return on Asset is 12.75%, which is in line with its 3-year historical median of 12.75%, indicating stable asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Methodhub Software Ltd?

Methodhub Software Ltd Return on capital employed is 25.29% for FY-2025, which is in line with its 3-year historical median of 25.29%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Methodhub Software Ltd?

Methodhub Software Ltd Return on equity is 26.7% for FY-2025, which is below its 3-year historical median of 34.2%, indicating the business is making worse use of its shareholders capital.

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

Q.7 Debt to Equity ratio of Methodhub Software Ltd?

Methodhub Software Ltd Debt-to-Equity ratio is 0.45, which is above the industry average of 0.01, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Methodhub Software Ltd?

Methodhub Software Ltd Debt to cash flow from operations is 19.37, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Methodhub Software Ltd?

Q.1 Promoter shareholding and pledge status of Methodhub Software Ltd?

Promoters hold 26.85% of the Methodhub Software Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Methodhub Software Ltd vs industry peers?

Methodhub Software Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 9.84%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth (%)	-	9.8
Gross Profit Growth (%)	50	23.4
Operating Profit Growth (%)	11.1	23.4
Net Profit Growth (%)	40	22

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover (x)	1.14	0.52
ROE (%)	26.7	5.87
ROCE (%)	25.29	8.34
Cash Conversion Cycle (days)	107.24	40

Valuation & price assessment

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

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

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

Q.2 Valuation ratios of Methodhub Software Ltd vs historical?

The current P/E ratio of 24.16 is lower than its historical median of 32.21, indicating that the stock is trading below its historical average valuation.

Q.3 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	24.16	32.21	46.11
Price to Book	1.01	1.37	2.78
Price to Sales	2.71	3.61	5.02
EV to EBITDA	13.43	17.88	17.30

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Check Before You Invest : Methodhub Software Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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