Check Before You Invest : Purple Wave Infocom Ltd

Snapshot

Q.1 Which industry/sub-sector does Purple Wave Infocom Ltd belong to?

Purple Wave Infocom Ltd belongs to the Consumer Durables sector, operating specifically within the Consumer Durables - Electronics segment.

Q.2 Is Purple Wave Infocom Ltd a good quality company?

Purple Wave Infocom Ltd is a weak quality company, based on a inconsistent 4-year financial track record.

Q.3 Is Purple Wave Infocom Ltd undervalued or overvalued?

Purple Wave Infocom Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Purple Wave Infocom Ltd a good buy now?

Purple Wave Infocom 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 Purple Wave Infocom Ltd?

Purple Wave Infocom Ltd revenue growth is 40.2% for FY-2025, which is above its 3-year CAGR of 30.82%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Purple Wave Infocom Ltd?

Purple Wave Infocom Ltd Return on capital employed is 53.85% for FY-2025, which is in line with its 3-year historical median of 53.85%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Purple Wave Infocom Ltd?

Purple Wave Infocom Ltd Return on Asset is 21.57%, which is above its 3-year historical median of 18.71%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Purple Wave Infocom Ltd?

Purple Wave Infocom Ltd Return on equity is 71.88% for FY-2025, which is in line with its 3-year historical median of 71.88%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Purple Wave Infocom Ltd?

Purple Wave Infocom Ltd Cash conversion cycle is 66 days, above its 3-year historical median of 49 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	2.98	2.98
ROE	71.88	71.88
ROCE	53.85	53.85
Cash Conversion Cycle	66 days	49 days

Q.6 Gross Profit margin of Purple Wave Infocom Ltd?

Purple Wave Infocom Ltd Gross profit margin which is the profit after deduction of direct costs, is 10% for FY-2025, which is above its 3-year median of 8.4%, indicating increasing margins.

Q.7 Operating Profit Margin of Purple Wave Infocom Ltd?

Purple Wave Infocom Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.12% for FY-2025, which is above its 3-year median of 9.24% indicating increasing margins.

Q.8 Net Profit Margin of Purple Wave Infocom Ltd?

Purple Wave Infocom Ltd Net Profit Margin is 7.23% for FY-2025, is above with its 3-year median of 6.05%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin	10	8.4
Operating Profit Margin	11.12	9.24
Net Profit Margin	7.23	6.05

Q.9 Debt to Equity ratio of Purple Wave Infocom Ltd?

Purple Wave Infocom Ltd Debt-to-Equity ratio is 0.86, which is above with the industry average of 0.34, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Purple Wave Infocom Ltd?

Purple Wave Infocom Ltd Debt to cash flow from operations is 20.79, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Purple Wave Infocom Ltd?

Promoters hold 71.92% of the Purple Wave Infocom Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Purple Wave Infocom Ltd vs industry peers?

Purple Wave Infocom Ltd revenue CAGR is 30.82%, compared to the industry median CAGR of 13.26%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	40.2	13.3
Gross Profit Growth	62.5	21.6
Operating Profit Growth	75	30.1
Net Profit Growth	80	15.6

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	2.98	1.24
ROE	71.88	7.09
ROCE	53.85	10.62
Cash Conversion Cycle (days)	65.93	56

Valuation & price assessment

Q.1 Stock return of Purple Wave Infocom 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 Purple Wave Infocom Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 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	12.78	11.93	43.72
Price to Book	2.39	2.24	3.42
Price to Sales	0.92	0.86	1.71
EV to EBITDA	9.1	8.53	18.24

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