Check Before You Invest : Arham Technologies Ltd

Snapshot

Q.1 Which industry/sub-sector does Arham Technologies Ltd belong to?

Arham Technologies Ltd belongs to the Consumer Durables sector, operating specifically within the Consumer Durables - Electronics segment.

Q.2 Is Arham Technologies Ltd a good quality company?

Arham Technologies Ltd is a average quality company, based on a somewhat consistent 6-year financial track record.

Q.3 Is Arham Technologies Ltd undervalued or overvalued?

Arham Technologies Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Arham Technologies Ltd a good buy now?

Arham Technologies 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

Q.1 Revenue growth of Arham Technologies Ltd?

Arham Technologies Ltd revenue growth is 19.1% for FY-2025, which is below its 5-year CAGR of 36.44%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Arham Technologies Ltd?

Arham Technologies Ltd Return on capital employed is 20.41% for FY-2025, which is below its 5-year historical median of 25.12%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Arham Technologies Ltd?

Arham Technologies Ltd Return on Asset is 10.53%, which is below its 5-year historical median of 12.63%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Arham Technologies Ltd?

Arham Technologies Ltd Return on equity is 22.16% for FY-2025, which is below its 5-year historical median of 27.14%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Arham Technologies Ltd?

Arham Technologies Ltd Cash conversion cycle is 226 days, above its 5-year historical median of 142 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.15	1.72
ROE	22.16	27.14
ROCE	20.41	25.12
Cash Conversion Cycle	226 days	142 days

Q.6 Gross Profit margin of Arham Technologies Ltd?

Arham Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.8% for FY-2025, which is in line with its 5-year median of 13.6%, indicating stable margins.

Q.7 Operating Profit Margin of Arham Technologies Ltd?

Arham Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.98% for FY-2025, which is above its 5-year median of 15.53% indicating increasing margins.

Q.8 Net Profit Margin of Arham Technologies Ltd?

Arham Technologies Ltd Net Profit Margin is 9.14% for FY-2025, is in line with with its 5-year median of 8.9%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	13.8	13.6
Operating Profit Margin	16.98	15.53
Net Profit Margin	9.14	8.9

Q.9 Debt to Equity ratio of Arham Technologies Ltd?

Arham Technologies Ltd Debt-to-Equity ratio is 0.92, which is above with the industry average of 0.36, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Arham Technologies Ltd?

Arham Technologies Ltd Debt to cash flow from operations is 6.9, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Arham Technologies Ltd?

Promoters hold 56.16% of the Arham Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Arham Technologies Ltd vs industry peers?

Arham Technologies Ltd revenue CAGR is 36.44%, compared to the industry median CAGR of 6.50%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	19.1	6.5
Gross Profit Growth	28.6	NAN
Operating Profit Growth	37.5	16.2
Net Profit Growth	20	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.15	1.13
ROE	22.16	5.4
ROCE	20.41	10
Cash Conversion Cycle (days)	226.08	59

Valuation & price assessment

Q.1 Stock return of Arham Technologies Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 35.85% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	35.9%	72.2%

Q.3 Valuation ratios of Arham Technologies Ltd vs historical?

The current P/E is higher 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	53.04	38.91	45.77
Price to Book	3.79	7.08	3.45
Price to Sales	4.85	3.44	1.16
EV to EBITDA	30.15	22.94	19.84

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