Check Before You Invest : Recode Studios Ltd

Q: Which industry/sub-sector does Recode Studios Ltd belong to?

Recode Studios Ltd belongs to the Retail sector, operating specifically within the e-Commerce segment.

Q: Is Recode Studios Ltd a good quality company?

Recode Studios 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 Recode Studios Ltd undervalued or overvalued?

Recode Studios Ltd appears Overvalued, as its key valuation ratios are higher 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. Price to Earnings, Current: 64.54, Historic Median: 67.49. Price to Book, Current: 3.78, Historic Median: 3.95. Price to Sales, Current: 4.46, Historic Median: 4.67. EV to EBITDA, Current: 34.76, Historic Median: 36.30

Q: Is Recode Studios Ltd a good buy now?

Recode Studios 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 Recode Studios Ltd?

Recode Studios Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.1% for FY-2025, which is above its 3-year median of 5.1%, indicating increasing margins.

Q: Operating Profit Margin of Recode Studios Ltd?

Recode Studios Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.94% for FY-2025, which is above its 3-year median of 6.51% indicating increasing margins.

Q: Net Profit Margin of Recode Studios Ltd?

Recode Studios Ltd Net Profit Margin is 6.91% for FY-2025, is above its 3-year median of 3.1%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 10.1, Historic Median: 5.1. Operating Profit Margin (%), Current: 12.94, Historic Median: 6.51. Net Profit Margin (%), Current: 6.91, Historic Median: 3.1

Q: Return on Asset of Recode Studios Ltd?

Recode Studios Ltd Return on Asset is 16.71%, which is above its 3-year historical median of 5.55%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Recode Studios Ltd?

Recode Studios Ltd Return on capital employed is 38.34% for FY-2025, which is above its 3-year historical median of 14.5%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q: Return on Equity (ROE) of Recode Studios Ltd?

Recode Studios Ltd Return on equity is 46.37% for FY-2025, which is above its 3-year historical median of 13.33%, indicating the business is making better use of its shareholders capital.

Snapshot

Q.1 Which industry/sub-sector does Recode Studios Ltd belong to?

Recode Studios Ltd belongs to the Retail sector, operating specifically within the e-Commerce segment.

Q.2 Is Recode Studios Ltd a good quality company?

Recode Studios 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 Recode Studios Ltd undervalued or overvalued?

Recode Studios Ltd appears Overvalued, as its key valuation ratios are higher 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	64.54	67.49
Price to Book	3.78	3.95
Price to Sales	4.46	4.67
EV to EBITDA	34.76	36.30

Q.4 Is Recode Studios Ltd a good buy now?

Recode Studios 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 Recode Studios Ltd?

Recode Studios Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.1% for FY-2025, which is above its 3-year median of 5.1%, indicating increasing margins.

Q.2 Operating Profit Margin of Recode Studios Ltd?

Recode Studios Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.94% for FY-2025, which is above its 3-year median of 6.51% indicating increasing margins.

Q.3 Net Profit Margin of Recode Studios Ltd?

Recode Studios Ltd Net Profit Margin is 6.91% for FY-2025, is above its 3-year median of 3.1%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin (%)	10.1	5.1
Operating Profit Margin (%)	12.94	6.51
Net Profit Margin (%)	6.91	3.1

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Recode Studios Ltd?

Recode Studios Ltd Return on Asset is 16.71%, which is above its 3-year historical median of 5.55%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Recode Studios Ltd?

Recode Studios Ltd Return on capital employed is 38.34% for FY-2025, which is above its 3-year historical median of 14.5%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Recode Studios Ltd?

Recode Studios Ltd Return on equity is 46.37% for FY-2025, which is above its 3-year historical median of 13.33%, indicating the business is making better use of its shareholders capital.

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

Q.7 Debt to Equity ratio of Recode Studios Ltd?

Recode Studios Ltd Debt-to-Equity ratio is 0.86, which is above the industry average of 0.11, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Recode Studios Ltd?

Recode Studios Ltd Debt to cash flow from operations is 2.41, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Recode Studios Ltd?

Q.1 Promoter shareholding and pledge status of Recode Studios Ltd?

Promoters hold % of the Recode Studios Ltd, with % of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Recode Studios Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Recode Studios Ltd vs industry peers?

Recode Studios Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 12.13%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth (%)	-	12.1
Gross Profit Growth (%)	400	44.2
Operating Profit Growth (%)	200	54.2
Net Profit Growth (%)	0	24.5

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover (x)	2.55	0.93
ROE (%)	46.37	15.62
ROCE (%)	38.34	17.63
Cash Conversion Cycle (days)	83.35	28

Valuation & price assessment

Q.1 Stock return of Recode Studios 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 Recode Studios Ltd vs historical?

The current P/E ratio of 64.54 is in line with than its historical median of 67.49, indicating that the stock is trading near 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	64.54	67.49	30.33
Price to Book	3.78	3.95	5.00
Price to Sales	4.46	4.67	7.96
EV to EBITDA	34.76	36.30	18.54

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