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Check Before You Invest : Starcom Information Technology Ltd

BSE: 531616 NSE: ISIN: INE347I01010
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does Starcom Information Technology Ltd belong to?
Starcom Information Technology Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is Starcom Information Technology Ltd a good quality company?
Starcom Information Technology Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Starcom Information Technology Ltd undervalued or overvalued?
Starcom Information Technology Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Starcom Information Technology Ltd a good buy now?
Starcom Information Technology 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

Q.1 Revenue growth of Starcom Information Technology Ltd?
Starcom Information Technology Ltd revenue growth is 65% for FY-2025 , which is above its 5 year CAGR of -20.4% , indicating faster growth.
Q.2 Gross Profit margin of Starcom Information Technology Ltd?
Starcom Information Technology Ltd Gross profit margin which is the profit after deduction of direct costs, is -153.2% for FY-2025 , which is in line with its 5 year median of -153.2% , indicating stable margins.
Q.3 Operating Profit Margin of Starcom Information Technology Ltd?
Starcom Information Technology Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -107.72% for FY-2025 , which is above its 5 year median of -108.01% indicating increasing margins.
Q.4 Net Profit Margin of Starcom Information Technology Ltd?
Starcom Information Technology Ltd Net Profit Margin is -168.03% for FY-2025 , is in line with with its 5 year median of -168.03%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin -153.2 -153.2
Operating Profit Margin -107.72 -108.01
Net Profit Margin -168.03 -168.03
Q.5 Return on Asset of Starcom Information Technology Ltd?
Starcom Information Technology Ltd Return on Asset is -17.17%, which is below its 5 year historical median of -15.86%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Starcom Information Technology Ltd?
Starcom Information Technology Ltd Return on equity is 0% for FY-2025 , which is in line with its historical median of 0%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Starcom Information Technology Ltd?
Starcom Information Technology Ltd Return on capital employed is 0% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Starcom Information Technology Ltd?
Starcom Information Technology Ltd Cash conversion cycle is -330 days, below its historical median of 28 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.1 0.1
ROE - -
ROCE - -28.29
Cash Conversion Cycle -330 days 28 days
Q.9 Debt to Equity ratio of Starcom Information Technology Ltd?
Starcom Information Technology Ltd Debt-to-Equity ratio is -0.66 , which is lower with the industry average of 0.01 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Starcom Information Technology Ltd?
Starcom Information Technology Ltd Debt to cash flow from operations is 2.61 , which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Starcom Information Technology Ltd?
Promoters hold 45.17% of the Starcom Information Technology Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Starcom Information Technology Ltd vs industry peers?
Starcom Information Technology Ltd revenue CAGR is -20.44% , compared to the industry median CAGR of 3.07% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 3 23.9
Gross Profit -4.6 1.8
Operating Profit -3.3 1.4
Net Profit -5 0.8
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.1 0.46
ROE - 3.97
ROCE - 6.41
Cash Conversion Cycle (days) -330.24 36

Valuation & price assessment

Q.1 Stock return of Starcom Information Technology Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -11.4% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price -11.4% -12.5% -18.2% -57.7%
Q.3 Valuation ratios of Starcom Information Technology Ltd vs historical?
The current P/E is similar that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - - 22.96
Price to Book -0.88 -2.84 2.61
Price to Sales 13.06 16.00 4.40
EV to EBITDA -9.28 -14.14 17.20

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