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Check Before You Invest : Sumit Woods Ltd

BSE: 0 NSE: SUMIT ISIN: INE748Z01013
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does Sumit Woods Ltd belong to?
Sumit Woods Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is Sumit Woods Ltd a good quality company?
Sumit Woods 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 Sumit Woods Ltd undervalued or overvalued?
Sumit Woods 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 16.78 32.80
Price to Book 1.37 1.97
Price to Sales 2.34 3.12
EV to EBITDA 9.79 16.54
Q.4 Is Sumit Woods Ltd a good buy now?
Sumit Woods Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 Sumit Woods Ltd?
Sumit Woods Ltd revenue growth is 45.7% for FY-2025, which is below its 5-year CAGR of 57.28%, indicating slower growth.

Q.2 Gross Profit margin of Sumit Woods Ltd?
Sumit Woods Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.6% for FY-2025, which is above its 5-year median of 8.4%, indicating increasing margins.

Q.3 Operating Profit Margin of Sumit Woods Ltd?
Sumit Woods Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 22.95% for FY-2025, which is in line with its 5-year median of 22.95% indicating stable margins.

Q.4 Net Profit Margin of Sumit Woods Ltd?
Sumit Woods Ltd Net Profit Margin is 14.11% for FY-2025, is above its 5-year median of 7.64%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 18.6 8.4
Operating Profit Margin (%) 22.95 22.95
Net Profit Margin (%) 14.11 7.64

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Sumit Woods Ltd?
Sumit Woods Ltd Return on Asset is 5.9%, which is above its 5-year historical median of 1.72%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Sumit Woods Ltd?
Sumit Woods Ltd Return on capital employed is 14.34% for FY-2025, which is above its 5-year historical median of 7.99%. 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 Sumit Woods Ltd?
Sumit Woods Ltd Return on equity is 13.21% for FY-2025, which is above its 5-year historical median of 4.87%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Sumit Woods Ltd?
Sumit Woods Ltd Cash conversion cycle is 511 days, below its 5-year historical median of 854 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.42 0.23
ROE (%) 13.21 4.87
ROCE (%) 14.34 7.99
Cash Conversion Cycle 511 days 854 days

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

Q.9 Debt to Equity ratio of Sumit Woods Ltd?
Sumit Woods Ltd Debt-to-Equity ratio is 0.39, which is above the industry average of 0.23, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Sumit Woods Ltd?
Sumit Woods Ltd Debt to cash flow from operations is -60.21, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Sumit Woods Ltd?

Q.1 Promoter shareholding and pledge status of Sumit Woods Ltd?
Promoters hold 60.78% of the Sumit Woods Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Sumit Woods Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Sumit Woods Ltd vs industry peers?
Sumit Woods Ltd revenue CAGR is 57.28%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 45.7 0
Gross Profit Growth (%) 240 14.9
Operating Profit Growth (%) 57.1 10.4
Net Profit Growth (%) 160 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.42 0.1
ROE (%) 13.21 1.36
ROCE (%) 14.34 3.88
Cash Conversion Cycle (days) 511.37 439

Valuation & price assessment

Q.1 Stock return of Sumit Woods Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 30.14% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 30.1% 6.6% -57%
Q.2 Valuation ratios of Sumit Woods Ltd vs historical?
The current P/E ratio of 16.78 is lower than its historical median of 32.80, 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 16.78 32.80 33.43
Price to Book 1.37 1.97 1.53
Price to Sales 2.34 3.12 5.23
EV to EBITDA 9.79 16.54 14.43

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