Check Before You Invest : Spectrum Electrical Industries Ltd

Q: Which industry/sub-sector does Spectrum Electrical Industries Ltd belong to?

Spectrum Electrical Industries Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.

Q: Is Spectrum Electrical Industries Ltd a good quality company?

Spectrum Electrical Industries 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 Spectrum Electrical Industries Ltd undervalued or overvalued?

Spectrum Electrical Industries Ltd appears Fair, as its key valuation ratios are in line with 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: 60.35, Historic Median: 96.45. Price to Book, Current: 9.84, Historic Median: 11.13. Price to Sales, Current: 4.49, Historic Median: 5.26. EV to EBITDA, Current: 31.01, Historic Median: 42.33

Q: Is Spectrum Electrical Industries Ltd a good buy now?

Spectrum Electrical Industries 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

Q: Revenue growth of Spectrum Electrical Industries Ltd?

Spectrum Electrical Industries Ltd revenue growth is 23.2% for FY-2025, which is in line with its 5-year CAGR of 22.97%, indicating stable growth.

Q: Gross Profit margin of Spectrum Electrical Industries Ltd?

Spectrum Electrical Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.1% for FY-2025, which is above its 5-year median of 8.3%, indicating increasing margins.

Q: Operating Profit Margin of Spectrum Electrical Industries Ltd?

Spectrum Electrical Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.18% for FY-2025, which is above its 5-year median of 12.32% indicating increasing margins.

Q: Net Profit Margin of Spectrum Electrical Industries Ltd?

Spectrum Electrical Industries Ltd Net Profit Margin is 6.11% for FY-2025, is above its 5-year median of 3.9%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 11.1, Historic Median: 8.3. Operating Profit Margin (%), Current: 13.18, Historic Median: 12.32. Net Profit Margin (%), Current: 6.11, Historic Median: 3.9

Q: Return on Asset of Spectrum Electrical Industries Ltd?

Spectrum Electrical Industries Ltd Return on Asset is 6.47%, which is above its 5-year historical median of 3.79%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Spectrum Electrical Industries Ltd?

Spectrum Electrical Industries Ltd Return on capital employed is 16.36% for FY-2025, which is above its 5-year historical median of 11.68%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Spectrum Electrical Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does Spectrum Electrical Industries Ltd belong to?

Spectrum Electrical Industries Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.

Q.2 Is Spectrum Electrical Industries Ltd a good quality company?

Spectrum Electrical Industries 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 Spectrum Electrical Industries Ltd undervalued or overvalued?

Spectrum Electrical Industries Ltd appears Fair, as its key valuation ratios are in line with 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	60.35	96.45
Price to Book	9.84	11.13
Price to Sales	4.49	5.26
EV to EBITDA	31.01	42.33

Q.4 Is Spectrum Electrical Industries Ltd a good buy now?

Spectrum Electrical Industries 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 Spectrum Electrical Industries Ltd?

Spectrum Electrical Industries Ltd revenue growth is 23.2% for FY-2025, which is in line with its 5-year CAGR of 22.97%, indicating stable growth.

Q.2 Gross Profit margin of Spectrum Electrical Industries Ltd?

Spectrum Electrical Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.1% for FY-2025, which is above its 5-year median of 8.3%, indicating increasing margins.

Q.3 Operating Profit Margin of Spectrum Electrical Industries Ltd?

Spectrum Electrical Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.18% for FY-2025, which is above its 5-year median of 12.32% indicating increasing margins.

Q.4 Net Profit Margin of Spectrum Electrical Industries Ltd?

Spectrum Electrical Industries Ltd Net Profit Margin is 6.11% for FY-2025, is above its 5-year median of 3.9%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	11.1	8.3
Operating Profit Margin (%)	13.18	12.32
Net Profit Margin (%)	6.11	3.9

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Spectrum Electrical Industries Ltd?

Spectrum Electrical Industries Ltd Return on Asset is 6.47%, which is above its 5-year historical median of 3.79%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Spectrum Electrical Industries Ltd?

Spectrum Electrical Industries Ltd Return on capital employed is 16.36% for FY-2025, which is above its 5-year historical median of 11.68%. 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 Spectrum Electrical Industries Ltd?

Spectrum Electrical Industries Ltd Return on equity is 13.94% for FY-2025, which is above its 5-year historical median of 9.6%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Spectrum Electrical Industries Ltd?

Spectrum Electrical Industries Ltd Cash conversion cycle is 112 days, above its 5-year historical median of 70 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)	1.06	1.3
ROE (%)	13.94	9.6
ROCE (%)	16.36	11.68
Cash Conversion Cycle	112 days	70 days

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

Q.9 Debt to Equity ratio of Spectrum Electrical Industries Ltd?

Spectrum Electrical Industries Ltd Debt-to-Equity ratio is 0.78, which is above the industry average of 0.29, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Spectrum Electrical Industries Ltd?

Spectrum Electrical Industries Ltd Debt to cash flow from operations is -8.01, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Spectrum Electrical Industries Ltd?

Q.1 Promoter shareholding and pledge status of Spectrum Electrical Industries Ltd?

Promoters hold 72.72% of the Spectrum Electrical Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Spectrum Electrical Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Spectrum Electrical Industries Ltd vs industry peers?

Spectrum Electrical Industries Ltd revenue CAGR is 22.97%, compared to the industry median CAGR of 13.01%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	23.2	13
Gross Profit Growth (%)	18.9	27.9
Operating Profit Growth (%)	30	28.4
Net Profit Growth (%)	26.3	28.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.06	1.06
ROE (%)	13.94	9.8
ROCE (%)	16.36	13.55
Cash Conversion Cycle (days)	111.7	99

Valuation & price assessment

Q.1 Stock return of Spectrum Electrical Industries Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 89.39% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	89.4%	42.3%	-16.1%

Q.2 Valuation ratios of Spectrum Electrical Industries Ltd vs historical?

The current P/E ratio of 60.35 is lower than its historical median of 96.45, 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	60.35	96.45	38.08
Price to Book	9.84	11.13	3.97
Price to Sales	4.49	5.26	2.75
EV to EBITDA	31.01	42.33	18.75

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Check Before You Invest : Spectrum Electrical Industries Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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