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Check Before You Invest : Shigan Quantum Technologies Ltd

BSE: 0 NSE: SHIGAN ISIN: INE03KJ01013
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Shigan Quantum Technologies Ltd belong to?
Shigan Quantum Technologies Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is Shigan Quantum Technologies Ltd a good quality company?
Shigan Quantum Technologies 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 Shigan Quantum Technologies Ltd undervalued or overvalued?
Shigan Quantum Technologies 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 21.07 21.36
Price to Book 1.93 2.85
Price to Sales 0.85 0.79
EV to EBITDA 9.93 11.29
Q.4 Is Shigan Quantum Technologies Ltd a good buy now?
Shigan Quantum Technologies 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

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 Shigan Quantum Technologies Ltd?
Shigan Quantum Technologies Ltd revenue growth is 38.6% for FY-2025, which is above its 5-year CAGR of 23.68%, indicating faster growth.

Q.2 Gross Profit margin of Shigan Quantum Technologies Ltd?
Shigan Quantum Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 7% for FY-2025, which is above its 5-year median of 6.1%, indicating increasing margins.

Q.3 Operating Profit Margin of Shigan Quantum Technologies Ltd?
Shigan Quantum Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.78% for FY-2025, which is above its 5-year median of 7.77% indicating increasing margins.

Q.4 Net Profit Margin of Shigan Quantum Technologies Ltd?
Shigan Quantum Technologies Ltd Net Profit Margin is 4.03% for FY-2025, is in line with its 5-year median of 3.84%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 7 6.1
Operating Profit Margin (%) 9.78 7.77
Net Profit Margin (%) 4.03 3.84

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Shigan Quantum Technologies Ltd?
Shigan Quantum Technologies Ltd Return on Asset is 5.19%, which is in line with its 5-year historical median of 5.19%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Shigan Quantum Technologies Ltd?
Shigan Quantum Technologies Ltd Return on capital employed is 13.63% for FY-2025, which is in line with its 5-year historical median of 13.63%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Shigan Quantum Technologies Ltd?
Shigan Quantum Technologies Ltd Return on equity is 10.66% for FY-2025, which is in line with its 5-year historical median of 10.66%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Shigan Quantum Technologies Ltd?
Shigan Quantum Technologies Ltd Cash conversion cycle is 87 days, above its 5-year historical median of 50 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) 1.29 1.29
ROE (%) 10.66 10.66
ROCE (%) 13.63 13.63
Cash Conversion Cycle 87 days 50 days

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

Q.9 Debt to Equity ratio of Shigan Quantum Technologies Ltd?
Shigan Quantum Technologies Ltd Debt-to-Equity ratio is 0.58, which is above the industry average of 0.40, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Shigan Quantum Technologies Ltd?
Shigan Quantum Technologies Ltd Debt to cash flow from operations is -4.32, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Shigan Quantum Technologies Ltd?

Q.1 Promoter shareholding and pledge status of Shigan Quantum Technologies Ltd?
Promoters hold 69.74% of the Shigan Quantum Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Shigan Quantum Technologies Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Shigan Quantum Technologies Ltd vs industry peers?
Shigan Quantum Technologies Ltd revenue CAGR is 23.68%, compared to the industry median CAGR of 11.89%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 38.6 11.9
Gross Profit Growth (%) 36.4 16.2
Operating Profit Growth (%) 53.9 14.7
Net Profit Growth (%) 60 20.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.29 1.24
ROE (%) 10.66 11.65
ROCE (%) 13.63 13.5
Cash Conversion Cycle (days) 86.63 46

Valuation & price assessment

Q.1 Stock return of Shigan Quantum Technologies Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of 2.61% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - 2.6% 8%
Q.2 Valuation ratios of Shigan Quantum Technologies Ltd vs historical?
The current P/E ratio of 21.07 is in line with than its historical median of 21.36, indicating that the stock is trading near 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 21.07 21.36 28.71
Price to Book 1.93 2.85 2.99
Price to Sales 0.85 0.79 1.35
EV to EBITDA 9.93 11.29 11.85

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