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Check Before You Invest : WH Brady & Company Ltd

BSE: 501391 NSE: ISIN: INE855A01019
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does WH Brady & Company Ltd belong to?
WH Brady & Company Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is WH Brady & Company Ltd a good quality company?
WH Brady & Company Ltd is a average quality company, based on a somewhat consistent 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 WH Brady & Company Ltd undervalued or overvalued?
WH Brady & Company Ltd appears Somewhat 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 83.69 42.30
Price to Book 2.89 2.43
Price to Sales 5.97 3.38
EV to EBITDA 37.13 24.20
Q.4 Is WH Brady & Company Ltd a good buy now?
WH Brady & Company 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 WH Brady & Company Ltd?
WH Brady & Company Ltd revenue growth is -21% for FY-2025, which is below its 5-year CAGR of -2.26%, indicating slower growth.

Q.2 Gross Profit margin of WH Brady & Company Ltd?
WH Brady & Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.3% for FY-2025, which is above its 5-year median of 13.7%, indicating increasing margins.

Q.3 Operating Profit Margin of WH Brady & Company Ltd?
WH Brady & Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.48% for FY-2025, which is below its 5-year median of 9.59% indicating decreasing margins.

Q.4 Net Profit Margin of WH Brady & Company Ltd?
WH Brady & Company Ltd Net Profit Margin is 10.74% for FY-2025, is above its 5-year median of 8.34%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 17.3 13.7
Operating Profit Margin (%) 7.48 9.59
Net Profit Margin (%) 10.74 8.34

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of WH Brady & Company Ltd?
WH Brady & Company Ltd Return on Asset is 5.21%, which is above its 5-year historical median of 4.02%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of WH Brady & Company Ltd?
WH Brady & Company Ltd Return on capital employed is 9.19% for FY-2025, which is above its 5-year historical median of 6.42%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of WH Brady & Company Ltd?
WH Brady & Company Ltd Return on equity is 6.84% for FY-2025, which is above its 5-year historical median of 5.22%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of WH Brady & Company Ltd?
WH Brady & Company Ltd Cash conversion cycle is 4 days, below its 5-year historical median of 12 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) 0.49 0.49
ROE (%) 6.84 5.22
ROCE (%) 9.19 6.42
Cash Conversion Cycle 4 days 12 days

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

Q.9 Debt to Equity ratio of WH Brady & Company Ltd?
WH Brady & Company Ltd Debt-to-Equity ratio is 0.04, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of WH Brady & Company Ltd?
WH Brady & Company Ltd Debt to cash flow from operations is 2.1, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of WH Brady & Company Ltd?

Q.1 Promoter shareholding and pledge status of WH Brady & Company Ltd?
Promoters hold 73.76% of the WH Brady & Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does WH Brady & Company Ltd performance compare with that of its Peers?

Q.1 Revenue growth of WH Brady & Company Ltd vs industry peers?
WH Brady & Company Ltd revenue CAGR is -2.26%, compared to the industry median CAGR of 0%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -21 -
Gross Profit Growth (%) - 17.9
Operating Profit Growth (%) 0 16.4
Net Profit Growth (%) - 17.3
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.49 0.52
ROE (%) 6.84 2.05
ROCE (%) 9.19 3.6
Cash Conversion Cycle (days) 4.26 46

Valuation & price assessment

Q.1 Stock return of WH Brady & Company Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 15% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
15% 37.5% 30.4% -20.4%
Q.2 Valuation ratios of WH Brady & Company Ltd vs historical?
The current P/E ratio of 83.69 is higher than its historical median of 42.30, indicating that the stock is trading above 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 83.69 42.30 33.62
Price to Book 2.89 2.43 1.57
Price to Sales 5.97 3.38 2.21
EV to EBITDA 37.13 24.20 14.09

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