Check Before You Invest : Qualitek Labs Ltd

Q: Which industry/sub-sector does Qualitek Labs Ltd belong to?

Qualitek Labs Ltd belongs to the Miscellaneous sector, operating specifically within the Miscellaneous segment.

Q: Is Qualitek Labs Ltd a good quality company?

Qualitek Labs Ltd is a weak quality company, based on a inconsistent 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: Is Qualitek Labs Ltd undervalued or overvalued?

Qualitek Labs Ltd appears Fair, as its key valuation ratios are in line with 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. Price to Earnings, Current: 74.99, Historic Median: 58.16. Price to Book, Current: 2.88, Historic Median: 3.63. Price to Sales, Current: 8.64, Historic Median: 8.12. EV to EBITDA, Current: 35.63, Historic Median: 32.58

Q: Is Qualitek Labs Ltd a good buy now?

Qualitek Labs 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

Q: Gross Profit margin of Qualitek Labs Ltd?

Qualitek Labs Ltd Gross profit margin which is the profit after deduction of direct costs, is 22.6% for FY-2025, which is in line with its 5-year median of 22.6%, indicating stable margins.

Q: Operating Profit Margin of Qualitek Labs Ltd?

Qualitek Labs Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 25.59% for FY-2025, which is in line with its 5-year median of 25.59% indicating stable margins.

Q: Net Profit Margin of Qualitek Labs Ltd?

Qualitek Labs Ltd Net Profit Margin is 11.52% for FY-2025, is in line with its 5-year median of 11.52%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 22.6, Historic Median: 22.6. Operating Profit Margin (%), Current: 25.59, Historic Median: 25.59. Net Profit Margin (%), Current: 11.52, Historic Median: 11.52

Q: Return on Asset of Qualitek Labs Ltd?

Qualitek Labs Ltd Return on Asset is 5.98%, which is in line with its 5-year historical median of 6.17%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Qualitek Labs Ltd?

Qualitek Labs Ltd Return on capital employed is 10.82% for FY-2025, which is below its 5-year historical median of 12.35%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q: Debt to Equity ratio of Qualitek Labs Ltd?

Qualitek Labs Ltd Debt-to-Equity ratio is 0.33, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Check Before You Invest : Qualitek Labs Ltd

BSE: 544091 NSE: ISIN: INE0Q1R01012

| Sector: Miscellaneous | Industry: Miscellaneous

Snapshot

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

Qualitek Labs Ltd belongs to the Miscellaneous sector, operating specifically within the Miscellaneous segment.

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

Qualitek Labs Ltd is a weak quality company, based on a inconsistent 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 Qualitek Labs Ltd undervalued or overvalued?

Qualitek Labs Ltd appears Fair, as its key valuation ratios are in line with 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	5-year Historic Median
Price to Earnings	74.99	58.16
Price to Book	2.88	3.63
Price to Sales	8.64	8.12
EV to EBITDA	35.63	32.58

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

Qualitek Labs 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.

Q.1 Gross Profit margin of Qualitek Labs Ltd?

Qualitek Labs Ltd Gross profit margin which is the profit after deduction of direct costs, is 22.6% for FY-2025, which is in line with its 5-year median of 22.6%, indicating stable margins.

Q.2 Operating Profit Margin of Qualitek Labs Ltd?

Qualitek Labs Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 25.59% for FY-2025, which is in line with its 5-year median of 25.59% indicating stable margins.

Q.3 Net Profit Margin of Qualitek Labs Ltd?

Qualitek Labs Ltd Net Profit Margin is 11.52% for FY-2025, is in line with its 5-year median of 11.52%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	22.6	22.6
Operating Profit Margin (%)	25.59	25.59
Net Profit Margin (%)	11.52	11.52

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Qualitek Labs Ltd?

Qualitek Labs Ltd Return on Asset is 5.98%, which is in line with its 5-year historical median of 6.17%, indicating stable asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Qualitek Labs Ltd?

Qualitek Labs Ltd Return on capital employed is 10.82% for FY-2025, which is below its 5-year historical median of 12.35%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

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

Q.6 Debt to Equity ratio of Qualitek Labs Ltd?

Qualitek Labs Ltd Debt-to-Equity ratio is 0.33, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Q.7 Debt to cash flow from operations of Qualitek Labs Ltd?

Qualitek Labs Ltd Debt to cash flow from operations is 3.56, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Qualitek Labs Ltd?

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

Promoters hold 56.46% of the Qualitek Labs Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Qualitek Labs Ltd performance compare with that of its Peers?

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

Qualitek Labs Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 0%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-	-
Gross Profit Growth (%)	42.9	12.3
Operating Profit Growth (%)	50	13.4
Net Profit Growth (%)	25	15.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.52	0.27
ROE (%)	-	2.93
ROCE (%)	10.82	8.78
Cash Conversion Cycle (days)	38.72	-

Valuation & price assessment

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

Over the last 1 year(s), the stock has delivered a CAGR of 20.57% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	20.6%

Q.2 Valuation ratios of Qualitek Labs Ltd vs historical?

The current P/E ratio of 74.99 is higher than its historical median of 58.16, indicating that the stock is trading above its historical average valuation.

Q.3 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	74.99	58.16	27.68
Price to Book	2.88	3.63	2.36
Price to Sales	8.64	8.12	4.98
EV to EBITDA	35.63	32.58	10.84

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Check Before You Invest : Qualitek Labs Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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