MoneyWorks4Me

Check Before You Invest : Mopshop Distribution Ltd

BSE: 544883 NSE: ISIN: INE2F5H01015
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Mopshop Distribution Ltd belong to?
Mopshop Distribution Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Mopshop Distribution Ltd a good quality company?
Mopshop Distribution 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 Mopshop Distribution Ltd undervalued or overvalued?
Mopshop Distribution Ltd appears Overvalued, as its key valuation ratios are higher 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 24.33 25.60
Price to Book 2.51 2.64
Price to Sales 2.01 2.12
EV to EBITDA 14.19 14.91
Q.4 Is Mopshop Distribution Ltd a good buy now?
Mopshop Distribution 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 Mopshop Distribution Ltd?
Mopshop Distribution Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.6% for FY-2025, which is above its 3-year median of 5.4%, indicating increasing margins.

Q.2 Operating Profit Margin of Mopshop Distribution Ltd?
Mopshop Distribution Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.61% for FY-2025, which is above its 3-year median of 7.68% indicating increasing margins.

Q.3 Net Profit Margin of Mopshop Distribution Ltd?
Mopshop Distribution Ltd Net Profit Margin is 8.28% for FY-2025, is above its 3-year median of 3.74%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 11.6 5.4
Operating Profit Margin (%) 14.61 7.68
Net Profit Margin (%) 8.28 3.74

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Mopshop Distribution Ltd?
Mopshop Distribution Ltd Return on Asset is 16.62%, which is above its 3-year historical median of 8.97%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Mopshop Distribution Ltd?
Mopshop Distribution Ltd Return on capital employed is 55.7% for FY-2025, which is above its 3-year historical median of 37.89%. 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 Mopshop Distribution Ltd?
Mopshop Distribution Ltd Return on equity is 71.98% for FY-2025, which is above its 3-year historical median of 67.93%, indicating the business is making better 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 Mopshop Distribution Ltd?
Mopshop Distribution Ltd Debt-to-Equity ratio is 0.76, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Mopshop Distribution Ltd?
Mopshop Distribution Ltd Debt to cash flow from operations is 1.3, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Mopshop Distribution Ltd?

Q.1 Promoter shareholding and pledge status of Mopshop Distribution Ltd?
Promoters hold % of the Mopshop Distribution Ltd, with % of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Mopshop Distribution Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Mopshop Distribution Ltd vs industry peers?
Mopshop Distribution Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 5.12%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) - 5.1
Gross Profit Growth (%) 139.9 16.1
Operating Profit Growth (%) 110.7 19.6
Net Profit Growth (%) 145.1 17
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 2.01 0.75
ROE (%) 71.98 3.33
ROCE (%) 55.7 4.48
Cash Conversion Cycle (days) 74.2 51

Valuation & price assessment

Q.1 Stock return of Mopshop Distribution 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 Mopshop Distribution Ltd vs historical?
The current P/E ratio of 24.33 is in line with than its historical median of 25.60, indicating that the stock is trading near 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 24.33 25.60 35.02
Price to Book 2.51 2.64 1.68
Price to Sales 2.01 2.12 2.16
EV to EBITDA 14.19 14.91 15.51

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