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Check Before You Invest : Moschip Technologies Ltd

BSE: 532407 NSE: MOSCHIP ISIN: INE935B01025
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does Moschip Technologies Ltd belong to?
Moschip Technologies Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is Moschip Technologies Ltd a good quality company?
Moschip Technologies 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 Moschip Technologies Ltd undervalued or overvalued?
Moschip Technologies 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 146 176.88
Price to Book 11.98 10.12
Price to Sales 9.09 8.64
EV to EBITDA 84.52 66.29
Q.4 Is Moschip Technologies Ltd a good buy now?
Moschip Technologies 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

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 Moschip Technologies Ltd?
Moschip Technologies Ltd revenue growth is 73.8% for FY-2025, which is above its 5-year CAGR of 43.63%, indicating faster growth.

Q.2 Gross Profit margin of Moschip Technologies Ltd?
Moschip Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.6% for FY-2025, which is above its 5-year median of 9.9%, indicating increasing margins.

Q.3 Operating Profit Margin of Moschip Technologies Ltd?
Moschip Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.38% for FY-2025, which is in line with its 5-year median of 11.38% indicating stable margins.

Q.4 Net Profit Margin of Moschip Technologies Ltd?
Moschip Technologies Ltd Net Profit Margin is 7.55% for FY-2025, is above its 5-year median of 3.08%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 10.6 9.9
Operating Profit Margin (%) 11.38 11.38
Net Profit Margin (%) 7.55 3.08

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Moschip Technologies Ltd?
Moschip Technologies Ltd Return on Asset is 7.33%, which is above its 5-year historical median of 2.78%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Moschip Technologies Ltd?
Moschip Technologies Ltd Return on capital employed is 11.26% for FY-2025, which is above its 5-year historical median of 8.7%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Moschip Technologies Ltd?
Moschip Technologies Ltd Return on equity is 10.75% for FY-2025, which is above its 5-year historical median of 6.07%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Moschip Technologies Ltd?
Moschip Technologies Ltd Cash conversion cycle is 51 days, below its 5-year historical median of 94 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) 0.97 0.77
ROE (%) 10.75 6.07
ROCE (%) 11.26 8.7
Cash Conversion Cycle 51 days 94 days

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

Q.9 Debt to Equity ratio of Moschip Technologies Ltd?
Moschip Technologies Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.01, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Moschip Technologies Ltd?
Moschip Technologies Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Moschip Technologies Ltd?

Q.1 Promoter shareholding and pledge status of Moschip Technologies Ltd?
Promoters hold 39.83% of the Moschip Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Moschip Technologies Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Moschip Technologies Ltd vs industry peers?
Moschip Technologies Ltd revenue CAGR is 43.63%, compared to the industry median CAGR of 3.17%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 73.8 3.2
Gross Profit Growth (%) 127.8 18.4
Operating Profit Growth (%) 120 18.8
Net Profit Growth (%) 383.3 21.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.97 0.46
ROE (%) 10.75 4.22
ROCE (%) 11.26 6.49
Cash Conversion Cycle (days) 50.67 36

Valuation & price assessment

Q.1 Stock return of Moschip Technologies Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 30% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
30% 48.4% 53% 52.4%
Q.2 Valuation ratios of Moschip Technologies Ltd vs historical?
The current P/E ratio of 146 is lower than its historical median of 176.88, indicating that the stock is trading below 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 146 176.88 47.38
Price to Book 11.98 10.12 2.64
Price to Sales 9.09 8.64 4.79
EV to EBITDA 84.52 66.29 16.75

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