Check Before You Invest : Capillary Technologies India Ltd

Q: Which industry/sub-sector does Capillary Technologies India Ltd belong to?

Capillary Technologies India Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q: Is Capillary Technologies India Ltd a good quality company?

Capillary Technologies India Ltd is a weak quality company, based on a inconsistent 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: Is Capillary Technologies India Ltd undervalued or overvalued?

Capillary Technologies India 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. Price to Earnings, Current: 1575.97, Historic Median: -. Price to Book, Current: 5.53, Historic Median: -. Price to Sales, Current: 21.49, Historic Median: -. EV to EBITDA, Current: 85.32, Historic Median: -

Q: Is Capillary Technologies India Ltd a good buy now?

Capillary Technologies India 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

Q: Revenue growth of Capillary Technologies India Ltd?

Capillary Technologies India Ltd revenue growth is 22.1% for FY-2025, which is above its 5-year CAGR of 0.94%, indicating faster growth.

Q: Gross Profit margin of Capillary Technologies India Ltd?

Capillary Technologies India Ltd Gross profit margin which is the profit after deduction of direct costs, is 22.4% for FY-2025, which is above its 5-year median of -1.7%, indicating increasing margins.

Q: Operating Profit Margin of Capillary Technologies India Ltd?

Capillary Technologies India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.15% for FY-2025, which is above its 5-year median of 0.68% indicating increasing margins.

Q: Net Profit Margin of Capillary Technologies India Ltd?

Capillary Technologies India Ltd Net Profit Margin is 2.01% for FY-2025, is above its 5-year median of -13.57%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 22.4, Historic Median: -1.7. Operating Profit Margin (%), Current: 19.15, Historic Median: 0.68. Net Profit Margin (%), Current: 2.01, Historic Median: -13.57

Q: Return on Asset of Capillary Technologies India Ltd?

Capillary Technologies India Ltd Return on Asset is 0.59%, which is above its 5-year historical median of -9.99%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Capillary Technologies India Ltd?

Capillary Technologies India Ltd Return on capital employed is 1.89% for FY-2025, which is above its 5-year historical median of -8.2%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Capillary Technologies India Ltd

BSE: 544614 NSE: CAPILLARY ISIN: INE0ILV01024

| Sector: IT & ITES | Industry: IT - Software

Snapshot

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

Capillary Technologies India Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Capillary Technologies India Ltd a good quality company?

Capillary Technologies India Ltd is a weak quality company, based on a inconsistent 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 Capillary Technologies India Ltd undervalued or overvalued?

Capillary Technologies India 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	1575.97	-
Price to Book	5.53	-
Price to Sales	21.49	-
EV to EBITDA	85.32	-

Q.4 Is Capillary Technologies India Ltd a good buy now?

Capillary Technologies India 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 Capillary Technologies India Ltd?

Capillary Technologies India Ltd revenue growth is 22.1% for FY-2025, which is above its 5-year CAGR of 0.94%, indicating faster growth.

Q.2 Gross Profit margin of Capillary Technologies India Ltd?

Capillary Technologies India Ltd Gross profit margin which is the profit after deduction of direct costs, is 22.4% for FY-2025, which is above its 5-year median of -1.7%, indicating increasing margins.

Q.3 Operating Profit Margin of Capillary Technologies India Ltd?

Capillary Technologies India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.15% for FY-2025, which is above its 5-year median of 0.68% indicating increasing margins.

Q.4 Net Profit Margin of Capillary Technologies India Ltd?

Capillary Technologies India Ltd Net Profit Margin is 2.01% for FY-2025, is above its 5-year median of -13.57%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	22.4	-1.7
Operating Profit Margin (%)	19.15	0.68
Net Profit Margin (%)	2.01	-13.57

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Capillary Technologies India Ltd?

Capillary Technologies India Ltd Return on Asset is 0.59%, which is above its 5-year historical median of -9.99%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Capillary Technologies India Ltd?

Capillary Technologies India Ltd Return on capital employed is 1.89% for FY-2025, which is above its 5-year historical median of -8.2%. 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 Capillary Technologies India Ltd?

Capillary Technologies India Ltd Return on equity is 0.84% for FY-2025, which is above its 5-year historical median of -20.35%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Capillary Technologies India Ltd?

Capillary Technologies India Ltd Cash conversion cycle is 11 days, below its 5-year historical median of 96 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)	0.29	0.42
ROE (%)	0.84	-20.35
ROCE (%)	1.89	-8.2
Cash Conversion Cycle	11 days	96 days

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

Q.9 Debt to Equity ratio of Capillary Technologies India Ltd?

Capillary Technologies India Ltd Debt-to-Equity ratio is 0.12, which is above the industry average of 0.01, indicating higher debt levels in the industry.

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

Capillary Technologies India Ltd Debt to cash flow from operations is 1, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Capillary Technologies India Ltd?

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

Promoters hold 52.23% of the Capillary Technologies India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Capillary Technologies India Ltd performance compare with that of its Peers?

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

Capillary Technologies India Ltd revenue CAGR is 0.94%, compared to the industry median CAGR of 3.17%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	22.1	3.2
Gross Profit Growth (%)	0	18.4
Operating Profit Growth (%)	0	18.8
Net Profit Growth (%)	0	21.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.29	0.46
ROE (%)	0.84	4.22
ROCE (%)	1.89	6.49
Cash Conversion Cycle (days)	10.86	36

Valuation & price assessment

Q.1 Stock return of Capillary Technologies India 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 Capillary Technologies India Ltd vs historical?

The current P/E ratio of 1575.97 is higher than its historical median of , 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	1575.97	-	47.38
Price to Book	5.53	-	2.64
Price to Sales	21.49	-	4.79
EV to EBITDA	85.32	-	16.75

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Check Before You Invest : Capillary Technologies India Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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