Check Before You Invest : Paramatrix Technologies Ltd

Snapshot

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

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

Q.2 Is Paramatrix Technologies Ltd a good quality company?

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

Q.3 Is Paramatrix Technologies Ltd undervalued or overvalued?

Paramatrix Technologies Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Paramatrix Technologies Ltd a good buy now?

Paramatrix Technologies 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 Paramatrix Technologies Ltd?

Paramatrix Technologies Ltd revenue growth is 2.4% for FY-2025, which is above its 5-year CAGR of -3.49%, indicating faster growth.

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

Paramatrix Technologies Ltd Return on capital employed is 12.22% for FY-2025, which is below its 5-year historical median of 33.14%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Paramatrix Technologies Ltd?

Paramatrix Technologies Ltd Return on Asset is 8.7%, which is below its 5-year historical median of 22.18%, indicating deteriorated asset utilization efficiency.

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

Paramatrix Technologies Ltd Return on equity is 9.36% for FY-2025, which is below its 5-year historical median of 27.01%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Paramatrix Technologies Ltd?

Paramatrix Technologies Ltd Cash conversion cycle is 77 days, above its 5-year historical median of 70 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.45	0.86
ROE	9.36	27.01
ROCE	12.22	33.14
Cash Conversion Cycle	77 days	70 days

Q.6 Gross Profit margin of Paramatrix Technologies Ltd?

Paramatrix Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 29.8% for FY-2025, which is below its 5-year median of 31.6%, indicating decreasing margins.

Q.7 Operating Profit Margin of Paramatrix Technologies Ltd?

Paramatrix Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.32% for FY-2025, which is in line with its 5-year median of 17.32% indicating stable margins.

Q.8 Net Profit Margin of Paramatrix Technologies Ltd?

Paramatrix Technologies Ltd Net Profit Margin is 19.15% for FY-2025, is below with its 5-year median of 21.71%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	29.8	31.6
Operating Profit Margin	17.32	17.32
Net Profit Margin	19.15	21.71

Q.9 Debt to Equity ratio of Paramatrix Technologies Ltd?

Paramatrix Technologies Ltd Debt-to-Equity ratio is 0.00, 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 Paramatrix Technologies Ltd?

Paramatrix Technologies Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Paramatrix Technologies Ltd?

Promoters hold 57.05% of the Paramatrix Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Paramatrix Technologies Ltd vs industry peers?

Paramatrix Technologies Ltd revenue CAGR is -3.49%, 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	2.4	10.9
Gross Profit Growth	33.1	19
Operating Profit Growth	45.8	NAN
Net Profit Growth	17.6	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.45	0.5
ROE	9.36	5.83
ROCE	12.22	6.79
Cash Conversion Cycle (days)	77.27	47

Valuation & price assessment

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

Over the last 1 year(s), the stock has delivered a CAGR of -26.08% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-26.1%

Q.3 Valuation ratios of Paramatrix Technologies 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	19.02	25.77	47.37
Price to Book	1.29	2.03	2.63
Price to Sales	3.64	4.75	4.79
EV to EBITDA	6.09	15.90	16.48

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