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Check Before You Invest : Telge Projects Ltd

BSE: 544544 NSE: ISIN: INE0SRP01014
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering Consultancy

Snapshot

Q.1 Which industry/sub-sector does Telge Projects Ltd belong to?
Telge Projects Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering Consultancy segment.
Q.2 Is Telge Projects Ltd a good quality company?
Telge Projects 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 Telge Projects Ltd undervalued or overvalued?
Telge Projects 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 3-year
Historic Median
Price to Earnings 30.7 29.73
Price to Book 3.05 2.62
Price to Sales 6.29 6.09
EV to EBITDA 19.82 19.57
Q.4 Is Telge Projects Ltd a good buy now?
Telge Projects 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 Telge Projects Ltd?
Telge Projects Ltd revenue growth is 52.9% for FY-2025, which is in line with its 3-year CAGR of 55.61%, indicating stable growth.

Q.2 Gross Profit margin of Telge Projects Ltd?
Telge Projects Ltd Gross profit margin which is the profit after deduction of direct costs, is 29.4% for FY-2025, which is in line with its 3-year median of 28.6%, indicating stable margins.

Q.3 Operating Profit Margin of Telge Projects Ltd?
Telge Projects Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 33.83% for FY-2025, which is above its 3-year median of 30.07% indicating increasing margins.

Q.4 Net Profit Margin of Telge Projects Ltd?
Telge Projects Ltd Net Profit Margin is 20.48% for FY-2025, is in line with its 3-year median of 20.48%, indicating stable margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 29.4 28.6
Operating Profit Margin (%) 33.83 30.07
Net Profit Margin (%) 20.48 20.48

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Telge Projects Ltd?
Telge Projects Ltd Return on Asset is 21.84%, which is in line with its 3-year historical median of 21.84%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Telge Projects Ltd?
Telge Projects Ltd Return on capital employed is 41.03% for FY-2025, which is in line with its 3-year historical median of 41.03%. 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 Telge Projects Ltd?
Telge Projects Ltd Return on equity is 50.38% for FY-2025, which is in line with its 3-year historical median of 50.38%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Telge Projects Ltd?
Telge Projects Ltd Cash conversion cycle is 44 days, below its 3-year historical median of 59 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 1.07 1.28
ROE (%) 50.38 50.38
ROCE (%) 41.03 41.03
Cash Conversion Cycle 44 days 59 days

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

Q.9 Debt to Equity ratio of Telge Projects Ltd?
Telge Projects Ltd Debt-to-Equity ratio is 1.00, which is above the industry average of 0.06, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Telge Projects Ltd?
Telge Projects Ltd Debt to cash flow from operations is 3.57, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Telge Projects Ltd?

Q.1 Promoter shareholding and pledge status of Telge Projects Ltd?
Promoters hold 71.65% of the Telge Projects Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Telge Projects Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Telge Projects Ltd vs industry peers?
Telge Projects Ltd revenue CAGR is 55.61%, compared to the industry median CAGR of 15.93%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 52.9 15.9
Gross Profit Growth (%) 66.7 29.3
Operating Profit Growth (%) 66.7 29.3
Net Profit Growth (%) 50 27.4
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.07 0.86
ROE (%) 50.38 18.16
ROCE (%) 41.03 26.32
Cash Conversion Cycle (days) 43.81 92

Valuation & price assessment

Q.1 Stock return of Telge Projects Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Telge Projects Ltd vs historical?
The current P/E ratio of 30.7 is in line with than its historical median of 29.73, indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 30.7 29.73 22.43
Price to Book 3.05 2.62 3.07
Price to Sales 6.29 6.09 3.08
EV to EBITDA 19.82 19.57 13.21

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