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Check Before You Invest : Praruh Technologies Ltd

BSE: 544538 NSE: ISIN: INE0TI501017
  |   Sector:  IT & ITES   |   Industry:  IT - Networking

Snapshot

Q.1 Which industry/sub-sector does Praruh Technologies Ltd belong to?
Praruh Technologies Ltd belongs to the IT & ITES sector, operating specifically within the IT - Networking segment.
Q.2 Is Praruh Technologies Ltd a good quality company?
Praruh Technologies Ltd is a quality company, based on a 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 Praruh Technologies Ltd undervalued or overvalued?
Praruh Technologies Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than 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 3-year
Historic Median
Price to Earnings 10.27 11.06
Price to Book 1.67 1.84
Price to Sales 1.13 1.21
EV to EBITDA 7.44 7.91
Q.4 Is Praruh Technologies Ltd a good buy now?
Praruh 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

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 Praruh Technologies Ltd?
Praruh Technologies Ltd revenue growth is 0.7% for FY-2025, which is below its 3-year CAGR of 45.1%, indicating slower growth.

Q.2 Gross Profit margin of Praruh Technologies Ltd?
Praruh Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.4% for FY-2025, which is above its 3-year median of 15.5%, indicating increasing margins.

Q.3 Operating Profit Margin of Praruh Technologies Ltd?
Praruh Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.63% for FY-2025, which is in line with its 3-year median of 16.96% indicating stable margins.

Q.4 Net Profit Margin of Praruh Technologies Ltd?
Praruh Technologies Ltd Net Profit Margin is 10.96% for FY-2025, is in line with its 3-year median of 10.58%, indicating stable margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 16.4 15.5
Operating Profit Margin (%) 17.63 16.96
Net Profit Margin (%) 10.96 10.58

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Praruh Technologies Ltd?
Praruh Technologies Ltd Return on Asset is 14%, which is in line with its 3-year historical median of 14%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Praruh Technologies Ltd?
Praruh Technologies Ltd Return on capital employed is 35.58% for FY-2025, which is below its 3-year historical median of 59.12%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Praruh Technologies Ltd?
Praruh Technologies Ltd Return on equity is 46.08% for FY-2025, which is below its 3-year historical median of 58.88%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Praruh Technologies Ltd?
Praruh Technologies Ltd Cash conversion cycle is 53 days, above its 3-year historical median of 29 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 1.28 1.77
ROE (%) 46.08 58.88
ROCE (%) 35.58 59.12
Cash Conversion Cycle 53 days 29 days

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

Q.9 Debt to Equity ratio of Praruh Technologies Ltd?
Praruh Technologies Ltd Debt-to-Equity ratio is 0.94, which is above the industry average of 0.01, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Praruh Technologies Ltd?
Praruh Technologies Ltd Debt to cash flow from operations is 3.96, which is at a unhealthy level.

Ownership & governance

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

Q.1 Promoter shareholding and pledge status of Praruh Technologies Ltd?
Promoters hold 73.22% of the Praruh Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Praruh Technologies Ltd vs industry peers?
Praruh Technologies Ltd revenue CAGR is 45.10%, compared to the industry median CAGR of 21.94%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 0.7 21.9
Gross Profit Growth (%) 6.4 35.7
Operating Profit Growth (%) 5.7 53.3
Net Profit Growth (%) 4.5 37.1
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.28 1.64
ROE (%) 46.08 23.69
ROCE (%) 35.58 31.89
Cash Conversion Cycle (days) 52.69 45

Valuation & price assessment

Q.1 Stock return of Praruh Technologies Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Praruh Technologies Ltd vs historical?
The current P/E ratio of 10.27 is lower than its historical median of 11.06, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 10.27 11.06 11.09
Price to Book 1.67 1.84 1.84
Price to Sales 1.13 1.21 1.14
EV to EBITDA 7.44 7.91 7.92

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