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Check Before You Invest : QMS Medical Allied Services Ltd

BSE: 0 NSE: QMSMEDI ISIN: INE0FMW01018
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does QMS Medical Allied Services Ltd belong to?
QMS Medical Allied Services Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is QMS Medical Allied Services Ltd a good quality company?
QMS Medical Allied Services Ltd is a average quality company, based on a somewhat consistent 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 QMS Medical Allied Services Ltd undervalued or overvalued?
QMS Medical Allied Services 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 5-year
Historic Median
Price to Earnings 18.08 22.50
Price to Book 1.57 2.51
Price to Sales 1.04 1.61
EV to EBITDA 10 13.59
Q.4 Is QMS Medical Allied Services Ltd a good buy now?
QMS Medical Allied Services Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 QMS Medical Allied Services Ltd?
QMS Medical Allied Services Ltd revenue growth is 17.4% for FY-2024, which is below its 5-year CAGR of 18.67%, indicating slower growth.

Q.2 Gross Profit margin of QMS Medical Allied Services Ltd?
QMS Medical Allied Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.8% for FY-2024, which is in line with its 5-year median of 12.5%, indicating stable margins.

Q.3 Operating Profit Margin of QMS Medical Allied Services Ltd?
QMS Medical Allied Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.05% for FY-2024, which is above its 5-year median of 13.21% indicating increasing margins.

Q.4 Net Profit Margin of QMS Medical Allied Services Ltd?
QMS Medical Allied Services Ltd Net Profit Margin is 7.37% for FY-2024, is in line with its 5-year median of 7.37%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 12.8 12.5
Operating Profit Margin (%) 15.05 13.21
Net Profit Margin (%) 7.37 7.37

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of QMS Medical Allied Services Ltd?
QMS Medical Allied Services Ltd Return on Asset is 7.05%, which is below its 5-year historical median of 14.7%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of QMS Medical Allied Services Ltd?
QMS Medical Allied Services Ltd Return on capital employed is 14.7% for FY-2024, which is below its 5-year historical median of 32.83%. 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 QMS Medical Allied Services Ltd?
QMS Medical Allied Services Ltd Return on equity is 12.09% for FY-2024, which is below its 5-year historical median of 41.62%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of QMS Medical Allied Services Ltd?
QMS Medical Allied Services Ltd Cash conversion cycle is 152 days, above its 5-year historical median of 86 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 (x) 0.96 2.01
ROE (%) 12.09 41.62
ROCE (%) 14.7 32.83
Cash Conversion Cycle 152 days 86 days

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

Q.9 Debt to Equity ratio of QMS Medical Allied Services Ltd?
QMS Medical Allied Services Ltd Debt-to-Equity ratio is 0.44, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of QMS Medical Allied Services Ltd?
QMS Medical Allied Services Ltd Debt to cash flow from operations is 25.37, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of QMS Medical Allied Services Ltd?

Q.1 Promoter shareholding and pledge status of QMS Medical Allied Services Ltd?
Promoters hold 68.11% of the QMS Medical Allied Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does QMS Medical Allied Services Ltd performance compare with that of its Peers?

Q.1 Revenue growth of QMS Medical Allied Services Ltd vs industry peers?
QMS Medical Allied Services Ltd revenue CAGR is 18.67%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 17.4 -
Gross Profit Growth (%) 60 17.7
Operating Profit Growth (%) 63.6 16.1
Net Profit Growth (%) 50 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.96 0.52
ROE (%) 12.09 2.05
ROCE (%) 14.7 3.6
Cash Conversion Cycle (days) 152.02 46

Valuation & price assessment

Q.1 Stock return of QMS Medical Allied Services Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of -15.11% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - -15.1% -5.4%
Q.2 Valuation ratios of QMS Medical Allied Services Ltd vs historical?
The current P/E ratio of 18.08 is lower than its historical median of 22.50, indicating that the stock is trading below 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 18.08 22.50 33.62
Price to Book 1.57 2.51 1.57
Price to Sales 1.04 1.61 2.21
EV to EBITDA 10 13.59 14.09

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