Check Before You Invest : Mirc Electronics Ltd

Snapshot

Q.1 Which industry/sub-sector does Mirc Electronics Ltd belong to?

Mirc Electronics Ltd belongs to the Consumer Durables sector, operating specifically within the Consumer Durables - Electronics segment.

Q.2 Is Mirc Electronics Ltd a good quality company?

Mirc Electronics Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Mirc Electronics Ltd undervalued or overvalued?

Mirc Electronics Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Mirc Electronics Ltd a good buy now?

Mirc Electronics Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Mirc Electronics Ltd?

Mirc Electronics Ltd revenue growth is -22.9% for FY-2025, which is below its 5-year CAGR of 4.32%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Mirc Electronics Ltd?

Mirc Electronics Ltd Return on capital employed is 5.37% for FY-2025, which is above its 5-year historical median of -0.58%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Mirc Electronics Ltd?

Mirc Electronics Ltd Return on Asset is -0.42%, which is above its 5-year historical median of -2.02%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Mirc Electronics Ltd?

Mirc Electronics Ltd Return on equity is -1.82% for FY-2025, which is above its 5-year historical median of -6.33%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Mirc Electronics Ltd?

Mirc Electronics Ltd Cash conversion cycle is 50 days, below its 5-year historical median of 58 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	1.36	1.74
ROE	-1.82	-6.33
ROCE	5.37	-0.58
Cash Conversion Cycle	50 days	58 days

Q.6 Gross Profit margin of Mirc Electronics Ltd?

Mirc Electronics Ltd Gross profit margin which is the profit after deduction of direct costs, is 0.6% for FY-2025, which is above its 5-year median of 0.1%, indicating increasing margins.

Q.7 Operating Profit Margin of Mirc Electronics Ltd?

Mirc Electronics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.24% for FY-2025, which is above its 5-year median of 0.55% indicating increasing margins.

Q.8 Net Profit Margin of Mirc Electronics Ltd?

Mirc Electronics Ltd Net Profit Margin is -0.31% for FY-2025, is above with its 5-year median of -1.12%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	0.6	0.1
Operating Profit Margin	1.24	0.55
Net Profit Margin	-0.31	-1.12

Q.9 Debt to Equity ratio of Mirc Electronics Ltd?

Mirc Electronics Ltd Debt-to-Equity ratio is 0.81, which is above with the industry average of 0.36, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Mirc Electronics Ltd?

Mirc Electronics Ltd Debt to cash flow from operations is 3.28, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Mirc Electronics Ltd?

Promoters hold 40.51% of the Mirc Electronics Ltd, with 28.42% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Mirc Electronics Ltd vs industry peers?

Mirc Electronics Ltd revenue CAGR is 4.32%, compared to the industry median CAGR of 6.50%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-22.9	6.5
Gross Profit Growth	0	NAN
Operating Profit Growth	0	16.2
Net Profit Growth	0	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.36	1.13
ROE	-1.82	5.4
ROCE	5.37	10
Cash Conversion Cycle (days)	49.99	59

Valuation & price assessment

Q.1 Stock return of Mirc Electronics Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 12.4% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	12.4%	18.9%	37.6%	162.5%

Q.3 Valuation ratios of Mirc Electronics Ltd vs historical?

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

Q.4 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	-	80.60	45.77
Price to Book	8.14	2.50	3.45
Price to Sales	1.73	0.48	1.16
EV to EBITDA	-52.24	22.24	19.84

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