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Check Before You Invest : Nettlinx Ltd

BSE: 511658 NSE: ISIN: INE027D01019
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does Nettlinx Ltd belong to?
Nettlinx Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is Nettlinx Ltd a good quality company?
Nettlinx Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Nettlinx Ltd undervalued or overvalued?
Nettlinx Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Nettlinx Ltd a good buy now?
Nettlinx 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 Nettlinx Ltd?
Nettlinx Ltd revenue growth is 13.7% for FY-2025 , which is above its 5 year CAGR of -3.4% , indicating faster growth.
Q.2 Gross Profit margin of Nettlinx Ltd?
Nettlinx Ltd Gross profit margin which is the profit after deduction of direct costs, is 39.7% for FY-2025 , which is above its 5 year median of 27.5% , indicating increasing margins.
Q.3 Operating Profit Margin of Nettlinx Ltd?
Nettlinx Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 44.89% for FY-2025 , which is above its 5 year median of 36.77% indicating increasing margins.
Q.4 Net Profit Margin of Nettlinx Ltd?
Nettlinx Ltd Net Profit Margin is 25.02% for FY-2025 , is above with its 5 year median of 13.43%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 39.7 27.5
Operating Profit Margin 44.89 36.77
Net Profit Margin 25.02 13.43
Q.5 Return on Asset of Nettlinx Ltd?
Nettlinx Ltd Return on Asset is 8.5%, which is above its 5 year historical median of 2.78%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Nettlinx Ltd?
Nettlinx Ltd Return on equity is 11.37% for FY-2025 , which is above its historical median of 3.78%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Nettlinx Ltd?
Nettlinx Ltd Return on capital employed is 14.73% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Nettlinx Ltd?
Nettlinx Ltd Cash conversion cycle is 247 days, above its historical median of 34 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.34 0.21
ROE 11.37 3.78
ROCE 14.73 6.17
Cash Conversion Cycle 247 days 34 days
Q.9 Debt to Equity ratio of Nettlinx Ltd?
Nettlinx Ltd Debt-to-Equity ratio is 0.30 , which is above with the industry average of 0.01 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Nettlinx Ltd?
Nettlinx Ltd Debt to cash flow from operations is -10.51 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Nettlinx Ltd?
Promoters hold 50.41% of the Nettlinx Ltd, with 2.26% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Nettlinx Ltd vs industry peers?
Nettlinx Ltd revenue CAGR is -3.39% , compared to the industry median CAGR of 3.07% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 22.7 23.9
Gross Profit 9 1.8
Operating Profit 10.2 1.4
Net Profit 5.7 0.8
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.34 0.46
ROE 11.37 3.97
ROCE 14.73 6.41
Cash Conversion Cycle (days) 247.4 36

Valuation & price assessment

Q.1 Stock return of Nettlinx Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -2.1% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price -2.1% -11.7% -45.7% -45.7%
Q.3 Valuation ratios of Nettlinx Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 34.40 22.96
Price to Book 0.91 2.85 2.61
Price to Sales 2.88 10.18 4.40
EV to EBITDA 14.52 33.34 17.20

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