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Check Before You Invest : Sedemac Mechatronics Ltd

BSE: 544723 NSE: SEDEMAC ISIN: INE00XB01019
  |   Sector:  Telecom   |   Industry:  Telecommunication - Equipment

Snapshot

Q.1 Which industry/sub-sector does Sedemac Mechatronics Ltd belong to?
Sedemac Mechatronics Ltd belongs to the Telecom sector, operating specifically within the Telecommunication - Equipment segment.
Q.2 Is Sedemac Mechatronics Ltd a good quality company?
Sedemac Mechatronics 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 Sedemac Mechatronics Ltd undervalued or overvalued?
Sedemac Mechatronics 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 5-year
Historic Median
Price to Earnings 190.16 -
Price to Book 26.4 -
Price to Sales 13.59 -
EV to EBITDA 71.86 -
Q.4 Is Sedemac Mechatronics Ltd a good buy now?
Sedemac Mechatronics 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 Sedemac Mechatronics Ltd?
Sedemac Mechatronics Ltd revenue growth is 24.1% for FY-2025, which is below its 5-year CAGR of 26.74%, indicating slower growth.

Q.2 Gross Profit margin of Sedemac Mechatronics Ltd?
Sedemac Mechatronics Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.1% for FY-2025, which is above its 5-year median of 9%, indicating increasing margins.

Q.3 Operating Profit Margin of Sedemac Mechatronics Ltd?
Sedemac Mechatronics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.38% for FY-2025, which is above its 5-year median of 11.74% indicating increasing margins.

Q.4 Net Profit Margin of Sedemac Mechatronics Ltd?
Sedemac Mechatronics Ltd Net Profit Margin is 7.15% for FY-2025, is above its 5-year median of 2.03%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 17.1 9
Operating Profit Margin (%) 18.38 11.74
Net Profit Margin (%) 7.15 2.03

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Sedemac Mechatronics Ltd?
Sedemac Mechatronics Ltd Return on Asset is 10.96%, which is above its 5-year historical median of 2.98%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Sedemac Mechatronics Ltd?
Sedemac Mechatronics Ltd Return on capital employed is 25.4% for FY-2025, which is above its 5-year historical median of 11.22%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Sedemac Mechatronics Ltd?
Sedemac Mechatronics Ltd Return on equity is 23.15% for FY-2025, which is above its 5-year historical median of 7.34%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Sedemac Mechatronics Ltd?
Sedemac Mechatronics Ltd Cash conversion cycle is 36 days, in line with its 5-year historical median of 36 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.54 1.48
ROE (%) 23.15 7.34
ROCE (%) 25.4 11.22
Cash Conversion Cycle 36 days 36 days

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

Q.9 Debt to Equity ratio of Sedemac Mechatronics Ltd?
Sedemac Mechatronics Ltd Debt-to-Equity ratio is 0.17, 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 Sedemac Mechatronics Ltd?
Sedemac Mechatronics Ltd Debt to cash flow from operations is 0.55, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Sedemac Mechatronics Ltd?

Q.1 Promoter shareholding and pledge status of Sedemac Mechatronics Ltd?
Promoters hold 26.24% of the Sedemac Mechatronics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Sedemac Mechatronics Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Sedemac Mechatronics Ltd vs industry peers?
Sedemac Mechatronics Ltd revenue CAGR is 26.74%, compared to the industry median CAGR of 12.15%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 24.1 12.2
Gross Profit Growth (%) 151.1 42.5
Operating Profit Growth (%) 55.1 20.6
Net Profit Growth (%) 683.3 65.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.54 0.59
ROE (%) 23.15 0.03
ROCE (%) 25.4 1.33
Cash Conversion Cycle (days) 36.32 115

Valuation & price assessment

Q.1 Stock return of Sedemac Mechatronics 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 Sedemac Mechatronics Ltd vs historical?
The current P/E ratio of 190.16 is higher than its historical median of , 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 190.16 - 31.57
Price to Book 26.4 - 2.63
Price to Sales 13.59 - 6.09
EV to EBITDA 71.86 - 14.85

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