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Check Before You Invest : Advait Energy Transitions Ltd

BSE: 543230 NSE: ADVAIT ISIN: INE0ALI01010
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Cable

Snapshot

Q.1 Which industry/sub-sector does Advait Energy Transitions Ltd belong to?
Advait Energy Transitions Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Cable segment.
Q.2 Is Advait Energy Transitions Ltd a good quality company?
Advait Energy Transitions Ltd is a good quality company, based on a consistently good 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 Advait Energy Transitions Ltd undervalued or overvalued?
Advait Energy Transitions 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 56.54 44.61
Price to Book 9.33 7.72
Price to Sales 5.89 4.60
EV to EBITDA 30.89 26.57
Q.4 Is Advait Energy Transitions Ltd a good buy now?
Advait Energy Transitions Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Advait Energy Transitions Ltd?
Advait Energy Transitions Ltd revenue growth is 42.4% for FY-2025, which is below its 5-year CAGR of 48.95%, indicating slower growth.

Q.2 Gross Profit margin of Advait Energy Transitions Ltd?
Advait Energy Transitions Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.4% for FY-2025, which is in line with its 5-year median of 14.7%, indicating stable margins.

Q.3 Operating Profit Margin of Advait Energy Transitions Ltd?
Advait Energy Transitions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.39% for FY-2025, which is in line with its 5-year median of 16.39% indicating stable margins.

Q.4 Net Profit Margin of Advait Energy Transitions Ltd?
Advait Energy Transitions Ltd Net Profit Margin is 10.66% for FY-2025, is above its 5-year median of 9.91%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 15.4 14.7
Operating Profit Margin (%) 16.39 16.39
Net Profit Margin (%) 10.66 9.91

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Advait Energy Transitions Ltd?
Advait Energy Transitions Ltd Return on Asset is 11.85%, which is in line with its 5-year historical median of 11.74%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Advait Energy Transitions Ltd?
Advait Energy Transitions Ltd Return on capital employed is 28.17% for FY-2025, which is in line with its 5-year historical median of 28.17%. 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 Advait Energy Transitions Ltd?
Advait Energy Transitions Ltd Return on equity is 23.47% for FY-2025, which is above its 5-year historical median of 21.4%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Advait Energy Transitions Ltd?
Advait Energy Transitions Ltd Cash conversion cycle is 14 days, in line with its 5-year historical median of 14 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 (x) 1.11 1.18
ROE (%) 23.47 21.4
ROCE (%) 28.17 28.17
Cash Conversion Cycle 14 days 14 days

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

Q.9 Debt to Equity ratio of Advait Energy Transitions Ltd?
Advait Energy Transitions Ltd Debt-to-Equity ratio is 0.33, which is lower the industry average of 0.52, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Advait Energy Transitions Ltd?
Advait Energy Transitions Ltd Debt to cash flow from operations is 1.3, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Advait Energy Transitions Ltd?

Q.1 Promoter shareholding and pledge status of Advait Energy Transitions Ltd?
Promoters hold 66.80% of the Advait Energy Transitions Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Advait Energy Transitions Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Advait Energy Transitions Ltd vs industry peers?
Advait Energy Transitions Ltd revenue CAGR is 48.95%, compared to the industry median CAGR of 4.57%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 42.4 4.6
Gross Profit Growth (%) 48.4 21.7
Operating Profit Growth (%) 37.1 18.6
Net Profit Growth (%) 47.6 28.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.11 1.18
ROE (%) 23.47 9.33
ROCE (%) 28.17 13.25
Cash Conversion Cycle (days) 13.6 90

Valuation & price assessment

Q.1 Stock return of Advait Energy Transitions Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 141.38% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 141.4% 93.8% 81.6%
Q.2 Valuation ratios of Advait Energy Transitions Ltd vs historical?
The current P/E ratio of 56.54 is higher than its historical median of 44.61, 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 56.54 44.61 28.85
Price to Book 9.33 7.72 2.59
Price to Sales 5.89 4.60 1.29
EV to EBITDA 30.89 26.57 12.65

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