MoneyWorks4Me

Check Before You Invest : Mobavenue Ai Tech Ltd

BSE: 539682 NSE: ISIN: INE622Q01027
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does Mobavenue Ai Tech Ltd belong to?
Mobavenue Ai Tech Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is Mobavenue Ai Tech Ltd a good quality company?
Mobavenue Ai Tech Ltd is a weak quality company, based on a inconsistent 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 Mobavenue Ai Tech Ltd undervalued or overvalued?
Mobavenue Ai Tech 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 0-year
Historic Median
Price to Earnings 61.38 157.93
Price to Book 21.02 3.00
Price to Sales 8.77 4.84
EV to EBITDA 38.01 51.15
Q.4 Is Mobavenue Ai Tech Ltd a good buy now?
Mobavenue Ai Tech 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.

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

Q.1 Debt to Equity ratio of Mobavenue Ai Tech Ltd?
Mobavenue Ai Tech Ltd Debt-to-Equity ratio is 0.09, which is above the industry average of , indicating higher debt levels in the industry.

Q.2 Debt to cash flow from operations of Mobavenue Ai Tech Ltd?
Mobavenue Ai Tech Ltd Debt to cash flow from operations is 0.24, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Mobavenue Ai Tech Ltd?

Q.1 Promoter shareholding and pledge status of Mobavenue Ai Tech Ltd?
Promoters hold 65.60% of the Mobavenue Ai Tech Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Mobavenue Ai Tech Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Mobavenue Ai Tech Ltd vs industry peers?
Mobavenue Ai Tech Ltd revenue CAGR is %, compared to the industry median CAGR of 21.54%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 0-year
Industry Median
Revenue Growth (%) - 21.5
Gross Profit Growth (%) 186.7 69.6
Operating Profit Growth (%) 228.6 37.3
Net Profit Growth (%) 190 74.3
Operating Efficiency
Current Level 0-year
Industry Median
Asset Turnover (x) 1.4 0.86
ROE (%) - 5.42
ROCE (%) - 8.22
Cash Conversion Cycle (days) -191.23 -20

Valuation & price assessment

Q.1 Stock return of Mobavenue Ai Tech Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 66.3% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
66.3% 162% 227.7% 28.7%
Q.2 Valuation ratios of Mobavenue Ai Tech Ltd vs historical?
The current P/E ratio of 61.38 is lower than its historical median of 157.93, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 0-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings 61.38 157.93 -
Price to Book 21.02 3.00 -
Price to Sales 8.77 4.84 -
EV to EBITDA 38.01 51.15 -

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