Check Before You Invest : Updater Services Ltd

Snapshot

Q.1 Which industry/sub-sector does Updater Services Ltd belong to?

Updater Services Ltd belongs to the Miscellaneous sector, operating specifically within the Professional Services segment.

Q.2 Is Updater Services Ltd a good quality company?

Updater Services Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Updater Services Ltd undervalued or overvalued?

Updater Services Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Updater Services Ltd a good buy now?

Updater Services 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

Q.1 Revenue growth of Updater Services Ltd?

Updater Services Ltd revenue growth is 12.3% for FY-2025, which is above its 5-year CAGR of 7.79%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Updater Services Ltd?

Updater Services Ltd Return on capital employed is 12.32% for FY-2025, which is in line with its 5-year historical median of 12.32%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Updater Services Ltd?

Updater Services Ltd Return on Asset is 6.6%, which is above its 5-year historical median of 5.93%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Updater Services Ltd?

Updater Services Ltd Return on equity is 9.96% for FY-2025, which is below its 5-year historical median of 10.67%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Updater Services Ltd?

Updater Services Ltd Cash conversion cycle is 71 days, in line with its 5-year historical median of 68 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	1.32	1.72
ROE	9.96	10.67
ROCE	12.32	12.32
Cash Conversion Cycle	71 days	68 days

Q.6 Gross Profit margin of Updater Services Ltd?

Updater Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.5% for FY-2025, which is above its 5-year median of 4%, indicating increasing margins.

Q.7 Operating Profit Margin of Updater Services Ltd?

Updater Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.33% for FY-2025, which is above its 5-year median of 3.18% indicating increasing margins.

Q.8 Net Profit Margin of Updater Services Ltd?

Updater Services Ltd Net Profit Margin is 4.98% for FY-2025, is above with its 5-year median of 3.07%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	5.5	4
Operating Profit Margin	4.33	3.18
Net Profit Margin	4.98	3.07

Q.9 Debt to Equity ratio of Updater Services Ltd?

Updater Services Ltd Debt-to-Equity ratio is 0.05, which is lower with the industry average of 0.21, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Updater Services Ltd?

Updater Services Ltd Debt to cash flow from operations is 4.08, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Updater Services Ltd?

Promoters hold 59.09% of the Updater Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Updater Services Ltd vs industry peers?

Updater Services Ltd revenue CAGR is 7.79%, compared to the industry median CAGR of 12.21%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	12.3	12.2
Gross Profit Growth	57.1	14.9
Operating Profit Growth	68.3	9.1
Net Profit Growth	125.7	14.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.32	1.39
ROE	9.96	13.01
ROCE	12.32	12.98
Cash Conversion Cycle (days)	71.4	61

Valuation & price assessment

Q.1 Stock return of Updater Services Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -42.03% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-42%

Q.3 Valuation ratios of Updater Services Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	13.96	52.16	29.19
Price to Book	1.19	2.03	2.44
Price to Sales	0.61	1.41	1.70
EV to EBITDA	12.49	25.28	15.37

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