MoneyWorks4Me

Check Before You Invest : Augmont Enterprises Ltd

BSE: 544888 NSE: AUGMONT ISIN: INE16W401027
  |   Sector:  Consumer Durables   |   Industry:  Diamond & Jewellery

Snapshot

Q.1 Which industry/sub-sector does Augmont Enterprises Ltd belong to?
Augmont Enterprises Ltd belongs to the Consumer Durables sector, operating specifically within the Diamond & Jewellery segment.
Q.2 Is Augmont Enterprises Ltd a good quality company?
Augmont Enterprises 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 Augmont Enterprises Ltd undervalued or overvalued?
Augmont Enterprises 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 5-year
Historic Median
Price to Earnings 73.53 73.99
Price to Book 7.33 7.38
Price to Sales 0.15 0.15
EV to EBITDA 51.26 51.59
Q.4 Is Augmont Enterprises Ltd a good buy now?
Augmont Enterprises 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 Augmont Enterprises Ltd?
Augmont Enterprises Ltd revenue growth is 73% for FY-2025, which is above its 5-year CAGR of 37.24%, indicating faster growth.

Q.2 Gross Profit margin of Augmont Enterprises Ltd?
Augmont Enterprises Ltd Gross profit margin which is the profit after deduction of direct costs, is 0.3% for FY-2025, which is above its 5-year median of 0.2%, indicating increasing margins.

Q.3 Operating Profit Margin of Augmont Enterprises Ltd?
Augmont Enterprises Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0.25% for FY-2025, which is in line with its 5-year median of 0.24% indicating stable margins.

Q.4 Net Profit Margin of Augmont Enterprises Ltd?
Augmont Enterprises Ltd Net Profit Margin is 0.2% for FY-2025, is above its 5-year median of 0.13%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 0.3 0.2
Operating Profit Margin (%) 0.25 0.24
Net Profit Margin (%) 0.2 0.13

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Augmont Enterprises Ltd?
Augmont Enterprises Ltd Return on Asset is 19.7%, which is above its 5-year historical median of 8.5%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Augmont Enterprises Ltd?
Augmont Enterprises Ltd Return on capital employed is 58.01% for FY-2025, which is above its 5-year historical median of 18.94%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Augmont Enterprises Ltd?
Augmont Enterprises Ltd Return on equity is 45.32% for FY-2025, which is above its 5-year historical median of 36.08%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Augmont Enterprises Ltd?
Augmont Enterprises Ltd Cash conversion cycle is -0 days, below its 5-year historical median of 1 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) 99.77 61.3
ROE (%) 45.32 36.08
ROCE (%) 58.01 18.94
Cash Conversion Cycle - 1 days

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

Q.9 Debt to Equity ratio of Augmont Enterprises Ltd?
Augmont Enterprises Ltd Debt-to-Equity ratio is 0.06, which is lower the industry average of 0.57, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Augmont Enterprises Ltd?
Augmont Enterprises Ltd Debt to cash flow from operations is 0.14, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Augmont Enterprises Ltd?

Q.1 Promoter shareholding and pledge status of Augmont Enterprises Ltd?
Promoters hold 81.91% of the Augmont Enterprises Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Augmont Enterprises Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Augmont Enterprises Ltd vs industry peers?
Augmont Enterprises Ltd revenue CAGR is 37.24%, compared to the industry median CAGR of 6.42%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 73 6.4
Gross Profit Growth (%) 86.6 32.3
Operating Profit Growth (%) 97.2 27.6
Net Profit Growth (%) 94.7 35.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 99.77 1.52
ROE (%) 45.32 8.01
ROCE (%) 58.01 9.66
Cash Conversion Cycle (days) -0.11 132

Valuation & price assessment

Q.1 Stock return of Augmont Enterprises 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 Augmont Enterprises Ltd vs historical?
The current P/E ratio of 73.53 is in line with than its historical median of 73.99, indicating that the stock is trading near 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 73.53 73.99 25.97
Price to Book 7.33 7.38 1.96
Price to Sales 0.15 0.15 1.27
EV to EBITDA 51.26 51.59 16.02

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