Check Before You Invest : Standard Engineering Technology Ltd

Snapshot

Q.1 Which industry/sub-sector does Standard Engineering Technology Ltd belong to?

Standard Engineering Technology Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q.2 Is Standard Engineering Technology Ltd a good quality company?

Standard Engineering Technology Ltd is a weak quality company, based on a inconsistent 4-year financial track record.

Q.3 Is Standard Engineering Technology Ltd undervalued or overvalued?

Standard Engineering Technology Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Standard Engineering Technology Ltd a good buy now?

Standard Engineering Technology Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Standard Engineering Technology Ltd?

Standard Engineering Technology Ltd revenue growth is -6.3% for FY-2025, which is below its 3-year CAGR of 8.73%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Standard Engineering Technology Ltd?

Standard Engineering Technology Ltd Return on capital employed is 8.63% for FY-2025, which is below its 3-year historical median of 15.01%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Standard Engineering Technology Ltd?

Standard Engineering Technology Ltd Return on Asset is 5.1%, which is below its 3-year historical median of 8.09%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Standard Engineering Technology Ltd?

Standard Engineering Technology Ltd Return on equity is 6.16% for FY-2025, which is below its 3-year historical median of 11.78%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Standard Engineering Technology Ltd?

Standard Engineering Technology Ltd Cash conversion cycle is 186 days, above its 3-year historical median of 127 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	0.35	0.64
ROE	6.16	11.78
ROCE	8.63	15.01
Cash Conversion Cycle	186 days	127 days

Q.6 Gross Profit margin of Standard Engineering Technology Ltd?

Standard Engineering Technology Ltd Gross profit margin which is the profit after deduction of direct costs, is 21.7% for FY-2025, which is above its 3-year median of 18.8%, indicating increasing margins.

Q.7 Operating Profit Margin of Standard Engineering Technology Ltd?

Standard Engineering Technology Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.58% for FY-2025, which is in line with its 3-year median of 15.58% indicating stable margins.

Q.8 Net Profit Margin of Standard Engineering Technology Ltd?

Standard Engineering Technology Ltd Net Profit Margin is 14.59% for FY-2025, is above with its 3-year median of 12.59%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin	21.7	18.8
Operating Profit Margin	15.58	15.58
Net Profit Margin	14.59	12.59

Q.9 Debt to Equity ratio of Standard Engineering Technology Ltd?

Standard Engineering Technology Ltd Debt-to-Equity ratio is 0.04, which is lower with the industry average of 0.32, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Standard Engineering Technology Ltd?

Standard Engineering Technology Ltd Debt to cash flow from operations is 3.3, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Standard Engineering Technology Ltd?

Promoters hold 60.47% of the Standard Engineering Technology Ltd, with 21.38% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Standard Engineering Technology Ltd vs industry peers?

Standard Engineering Technology Ltd revenue CAGR is 8.73%, compared to the industry median CAGR of 15.81%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	-6.3	15.8
Gross Profit Growth	10.3	26
Operating Profit Growth	-18.9	26
Net Profit Growth	11.5	26

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	0.35	0.92
ROE	6.16	18.06
ROCE	8.63	19.57
Cash Conversion Cycle (days)	185.67	101

Valuation & price assessment

Q.1 Stock return of Standard Engineering Technology Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of 1.72% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	1.7%

Q.3 Valuation ratios of Standard Engineering Technology Ltd vs historical?

The current P/E is lower 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	65.46	107.91	32.48
Price to Book	4.43	4.35	3.48
Price to Sales	11.79	14.51	3.29
EV to EBITDA	42.94	64.41	16.36

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