Check Before You Invest : Mudunuru Ltd

BSE: 538743 NSE: ISIN: INE491C01027

| Sector: IT & ITES | Industry: IT - Software

Snapshot

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

Mudunuru Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Mudunuru Ltd a good quality company?

Mudunuru Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Mudunuru Ltd undervalued or overvalued?

Mudunuru Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Mudunuru Ltd a good buy now?

Mudunuru 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

Q.1 Revenue growth of Mudunuru Ltd?

Mudunuru Ltd revenue growth is 113.8% for FY-2025, which is above its 5-year CAGR of 8.46%, indicating faster growth.

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

Mudunuru Ltd Return on capital employed is -27.01% for FY-2025, which is above its 5-year historical median of -67.03%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Mudunuru Ltd?

Mudunuru Ltd Return on Asset is -21.78%, which is above its 5-year historical median of -25.22%, indicating improved asset utilization efficiency.

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

Mudunuru Ltd Return on equity is 0% for FY-2025, which is below its 5-year historical median of 0.43%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Mudunuru Ltd?

Mudunuru Ltd Cash conversion cycle is 26 days, in line with its 5-year historical median of 26 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.03	0.42
ROE	-	0.43
ROCE	-27.01	-67.03
Cash Conversion Cycle	26 days	26 days

Q.6 Gross Profit margin of Mudunuru Ltd?

Mudunuru Ltd Gross profit margin which is the profit after deduction of direct costs, is -5.7% for FY-2025, which is above its 5-year median of -41.7%, indicating increasing margins.

Q.7 Operating Profit Margin of Mudunuru Ltd?

Mudunuru Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -4.32% for FY-2025, which is above its 5-year median of -32.76% indicating increasing margins.

Q.8 Net Profit Margin of Mudunuru Ltd?

Mudunuru Ltd Net Profit Margin is -21.14% for FY-2025, is above with its 5-year median of -63.26%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-5.7	-41.7
Operating Profit Margin	-4.32	-32.76
Net Profit Margin	-21.14	-63.26

Q.9 Debt to Equity ratio of Mudunuru Ltd?

Mudunuru Ltd Debt-to-Equity ratio is -1.76, which is lower with the industry average of 0.11, indicating lower debt levels in the industry.

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

Mudunuru Ltd Debt to cash flow from operations is -5.43, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Mudunuru Ltd?

Promoters hold 52.53% of the Mudunuru Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Mudunuru Ltd vs industry peers?

Mudunuru Ltd revenue CAGR is 8.46%, compared to the industry median CAGR of 10.86%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	113.8	10.9
Gross Profit Growth	0	18.3
Operating Profit Growth	0	18.8
Net Profit Growth	0	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.03	0.5
ROE	-	5.83
ROCE	-27.01	6.79
Cash Conversion Cycle (days)	26.48	47

Valuation & price assessment

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

Over the last 9 year(s), the stock has delivered a CAGR of -12.9% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-12.9%	23%	4.3%	45.2%

Q.3 Valuation ratios of Mudunuru 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	-	154.56	47.37
Price to Book	-24.64	-16.65	2.63
Price to Sales	6.1	12.91	4.79
EV to EBITDA	-242.22	-22.66	16.48

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