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Check Before You Invest : Mewar Hi-Tech Engineering Ltd

BSE: 540150 NSE: ISIN: INE957U01011
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does Mewar Hi-Tech Engineering Ltd belong to?
Mewar Hi-Tech Engineering Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is Mewar Hi-Tech Engineering Ltd a good quality company?
Mewar Hi-Tech Engineering 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 Mewar Hi-Tech Engineering Ltd undervalued or overvalued?
Mewar Hi-Tech Engineering Ltd appears Fair, as its key valuation ratios are in line with 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 9.03 -
Price to Book 2.32 1.96
Price to Sales 0.51 0.61
EV to EBITDA 6.43 -65.42
Q.4 Is Mewar Hi-Tech Engineering Ltd a good buy now?
Mewar Hi-Tech Engineering 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 Mewar Hi-Tech Engineering Ltd?
Mewar Hi-Tech Engineering Ltd revenue growth is 14.1% for FY-2025, which is above its 5-year CAGR of -0.8%, indicating faster growth.

Q.2 Gross Profit margin of Mewar Hi-Tech Engineering Ltd?
Mewar Hi-Tech Engineering Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.6% for FY-2025, which is above its 5-year median of 5%, indicating increasing margins.

Q.3 Operating Profit Margin of Mewar Hi-Tech Engineering Ltd?
Mewar Hi-Tech Engineering Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.34% for FY-2025, which is above its 5-year median of 9.6% indicating increasing margins.

Q.4 Net Profit Margin of Mewar Hi-Tech Engineering Ltd?
Mewar Hi-Tech Engineering Ltd Net Profit Margin is 5.65% for FY-2025, is above its 5-year median of 1.55%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 9.6 5
Operating Profit Margin (%) 14.34 9.6
Net Profit Margin (%) 5.65 1.55

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Mewar Hi-Tech Engineering Ltd?
Mewar Hi-Tech Engineering Ltd Return on Asset is 6.22%, which is above its 5-year historical median of 1.59%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Mewar Hi-Tech Engineering Ltd?
Mewar Hi-Tech Engineering Ltd Return on capital employed is 18.56% for FY-2025, which is above its 5-year historical median of 11.79%. 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 Mewar Hi-Tech Engineering Ltd?
Mewar Hi-Tech Engineering Ltd Return on equity is 29.93% for FY-2025, which is above its 5-year historical median of 13.34%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Mewar Hi-Tech Engineering Ltd?
Mewar Hi-Tech Engineering Ltd Cash conversion cycle is 149 days, below its 5-year historical median of 165 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.11 0.93
ROE (%) 29.93 13.34
ROCE (%) 18.56 11.79
Cash Conversion Cycle 149 days 165 days

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

Q.9 Debt to Equity ratio of Mewar Hi-Tech Engineering Ltd?
Mewar Hi-Tech Engineering Ltd Debt-to-Equity ratio is 1.90, which is above the industry average of 0.18, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Mewar Hi-Tech Engineering Ltd?
Mewar Hi-Tech Engineering Ltd Debt to cash flow from operations is 6.6, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Mewar Hi-Tech Engineering Ltd?

Q.1 Promoter shareholding and pledge status of Mewar Hi-Tech Engineering Ltd?
Promoters hold 56.32% of the Mewar Hi-Tech Engineering Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Mewar Hi-Tech Engineering Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Mewar Hi-Tech Engineering Ltd vs industry peers?
Mewar Hi-Tech Engineering Ltd revenue CAGR is -0.80%, compared to the industry median CAGR of 3.04%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 14.1 3
Gross Profit Growth (%) 85.3 23
Operating Profit Growth (%) 39.2 21.7
Net Profit Growth (%) 185 26.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.11 0.89
ROE (%) 29.93 11.8
ROCE (%) 18.56 14.41
Cash Conversion Cycle (days) 148.54 99

Valuation & price assessment

Q.1 Stock return of Mewar Hi-Tech Engineering Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 12.58% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 12.6% 9.7% -57%
Q.2 Valuation ratios of Mewar Hi-Tech Engineering Ltd vs historical?
The current P/E ratio of 9.03 is higher than its historical median of , 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 9.03 - 29.36
Price to Book 2.32 1.96 2.91
Price to Sales 0.51 0.61 2.93
EV to EBITDA 6.43 -65.42 15.77

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