Check Before You Invest : Pine Labs Ltd

BSE: 544606 NSE: PINELABS ISIN: INE15B701018

| Sector: IT & ITES | Industry: Fintech

Snapshot

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

Pine Labs Ltd belongs to the IT & ITES sector, operating specifically within the Fintech segment.

Q.2 Is Pine Labs Ltd a good quality company?

Pine Labs Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Pine Labs Ltd undervalued or overvalued?

Pine Labs Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Pine Labs Ltd a good buy now?

Pine Labs 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

Q.1 Revenue growth of Pine Labs Ltd?

Pine Labs Ltd revenue growth is 19.8% for FY-2025, which is above its 5-year CAGR of 19.18%, indicating faster growth.

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

Pine Labs Ltd Return on capital employed is 4.84% for FY-2025, which is above its 5-year historical median of -2.88%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Q.3 Return on Asset of Pine Labs Ltd?

Pine Labs Ltd Return on Asset is 0.52%, which is above its 5-year historical median of -0.83%, indicating improved asset utilization efficiency.

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

Pine Labs Ltd Return on equity is 2.12% for FY-2025, which is above its 5-year historical median of -2.84%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Pine Labs Ltd?

Pine Labs Ltd Cash conversion cycle is -20 days, below its 5-year historical median of 1 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	0.19	0.19
ROE	2.12	-2.84
ROCE	4.84	-2.88
Cash Conversion Cycle	-20 days	1 days

Q.6 Gross Profit margin of Pine Labs Ltd?

Pine Labs Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.3% for FY-2025, which is above its 5-year median of 12.8%, indicating increasing margins.

Q.7 Operating Profit Margin of Pine Labs Ltd?

Pine Labs Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.18% for FY-2025, which is above its 5-year median of 13.58% indicating increasing margins.

Q.8 Net Profit Margin of Pine Labs Ltd?

Pine Labs Ltd Net Profit Margin is 2.73% for FY-2025, is above with its 5-year median of -4.38%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	16.3	12.8
Operating Profit Margin	15.18	13.58
Net Profit Margin	2.73	-4.38

Q.9 Debt to Equity ratio of Pine Labs Ltd?

Pine Labs Ltd Debt-to-Equity ratio is 0.35, which is above with the industry average of 0.16, indicating higher debt levels in the industry.

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

Pine Labs Ltd Debt to cash flow from operations is 24.55, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Pine Labs Ltd?

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

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Pine Labs Ltd vs industry peers?

Pine Labs Ltd revenue CAGR is 19.18%, compared to the industry median CAGR of 19.18%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	19.8	19.2
Gross Profit Growth	900	27.1
Operating Profit Growth	454.8	15
Net Profit Growth	0	16.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.19	0.49
ROE	2.12	-2.84
ROCE	4.84	-2.88
Cash Conversion Cycle (days)	-20.36	4

Valuation & price assessment

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

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

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

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

Q.3 Valuation ratios of Pine Labs 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	511.35	572.73	62.87
Price to Book	3.5	3.95	3.88
Price to Sales	13.94	15.62	3.97
EV to EBITDA	51.28	59.37	20.79

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