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Check Before You Invest : Silicon Rental Solutions Ltd

BSE: 543615 NSE: ISIN: INE0MNV01014
  |   Sector:  Miscellaneous   |   Industry:  Business Support

Snapshot

Q.1 Which industry/sub-sector does Silicon Rental Solutions Ltd belong to?
Silicon Rental Solutions Ltd belongs to the Miscellaneous sector, operating specifically within the Business Support segment.
Q.2 Is Silicon Rental Solutions Ltd a good quality company?
Silicon Rental Solutions Ltd is a quality company, based on a 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 Silicon Rental Solutions Ltd undervalued or overvalued?
Silicon Rental Solutions 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 7.14 16.54
Price to Book 0.96 3.10
Price to Sales 0.92 4.25
EV to EBITDA 1.52 5.64
Q.4 Is Silicon Rental Solutions Ltd a good buy now?
Silicon Rental Solutions 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 Silicon Rental Solutions Ltd?
Silicon Rental Solutions Ltd revenue growth is 61.2% for FY-2025, which is above its 5-year CAGR of 52.7%, indicating faster growth.

Q.2 Gross Profit margin of Silicon Rental Solutions Ltd?
Silicon Rental Solutions Ltd Gross profit margin which is the profit after deduction of direct costs, is 44.5% for FY-2025, which is below its 5-year median of 69%, indicating decreasing margins.

Q.3 Operating Profit Margin of Silicon Rental Solutions Ltd?
Silicon Rental Solutions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 44.31% for FY-2025, which is below its 5-year median of 69.97% indicating decreasing margins.

Q.4 Net Profit Margin of Silicon Rental Solutions Ltd?
Silicon Rental Solutions Ltd Net Profit Margin is 12.95% for FY-2025, is below its 5-year median of 20.39%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 44.5 69
Operating Profit Margin (%) 44.31 69.97
Net Profit Margin (%) 12.95 20.39

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Silicon Rental Solutions Ltd?
Silicon Rental Solutions Ltd Return on Asset is 13.69%, which is below its 5-year historical median of 19.31%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Silicon Rental Solutions Ltd?
Silicon Rental Solutions Ltd Return on capital employed is 21.72% for FY-2025, which is below its 5-year historical median of 32.2%. 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 Silicon Rental Solutions Ltd?
Silicon Rental Solutions Ltd Return on equity is 16.41% for FY-2025, which is below its 5-year historical median of 31.43%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Silicon Rental Solutions Ltd?
Silicon Rental Solutions Ltd Cash conversion cycle is 98 days, in line with its 5-year historical median of 98 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) 1.06 0.77
ROE (%) 16.41 31.43
ROCE (%) 21.72 32.2
Cash Conversion Cycle 98 days 98 days

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

Q.9 Debt to Equity ratio of Silicon Rental Solutions Ltd?
Silicon Rental Solutions Ltd Debt-to-Equity ratio is 0.05, which is lower the industry average of 0.06, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Silicon Rental Solutions Ltd?
Silicon Rental Solutions Ltd Debt to cash flow from operations is 0.12, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Silicon Rental Solutions Ltd?

Q.1 Promoter shareholding and pledge status of Silicon Rental Solutions Ltd?
Promoters hold 66.69% of the Silicon Rental Solutions Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Silicon Rental Solutions Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Silicon Rental Solutions Ltd vs industry peers?
Silicon Rental Solutions Ltd revenue CAGR is 52.70%, compared to the industry median CAGR of 0.35%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 61.2 0.4
Gross Profit Growth (%) 17.1 13.2
Operating Profit Growth (%) 16.2 14.9
Net Profit Growth (%) 2.3 18.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.06 0.3
ROE (%) 16.41 3.7
ROCE (%) 21.72 9.3
Cash Conversion Cycle (days) 98.24 44

Valuation & price assessment

Q.1 Stock return of Silicon Rental Solutions Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of -23.59% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - -23.6% -58.9%
Q.2 Valuation ratios of Silicon Rental Solutions Ltd vs historical?
The current P/E ratio of 7.14 is lower than its historical median of 16.54, 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 7.14 16.54 26.13
Price to Book 0.96 3.10 2.37
Price to Sales 0.92 4.25 5.96
EV to EBITDA 1.52 5.64 11.62

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