Check Before You Invest : Choice International Ltd

Snapshot

Q.1 Which industry/sub-sector does Choice International Ltd belong to?

Choice International Ltd belongs to the BFSI sector, operating specifically within the Finance - Stock Broking segment.

Q.2 Is Choice International Ltd a good quality company?

Choice International Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Choice International Ltd undervalued or overvalued?

Choice International Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Choice International Ltd a good buy now?

Choice International Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Choice International Ltd?

Choice International Ltd revenue growth is 89.8% for FY-2025, which is above its 5-year CAGR of 22.8%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Choice International Ltd?

Choice International Ltd Return on capital employed is 3.5% for FY-2025, which is above its 5-year historical median of 2.8%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.3 Return on Asset of Choice International Ltd?

Choice International Ltd Return on Asset is 1.9%, which is above its 5-year historical median of 0.9%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Choice International Ltd?

Choice International Ltd Return on equity is 3.1% for FY-2025, which is above its 5-year historical median of 1.2%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Choice International Ltd?

Choice International Ltd Cash conversion cycle is -8 days, below its 5-year historical median of 6 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	0.06	0.04
ROE	3.1	1.2
ROCE	3.5	2.8
Cash Conversion Cycle	-8 days	6 days

Q.6 Gross Profit margin of Choice International Ltd?

Choice International Ltd Gross profit margin which is the profit after deduction of direct costs, is 48.7% for FY-2025, which is above its 5-year median of 37.6%, indicating increasing margins.

Q.7 Operating Profit Margin of Choice International Ltd?

Choice International Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 55.46% for FY-2025, which is in line with its 5-year median of 55.46% indicating stable margins.

Q.8 Net Profit Margin of Choice International Ltd?

Choice International Ltd Net Profit Margin is 34.1% for FY-2025, is above with its 5-year median of 21.61%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	48.7	37.6
Operating Profit Margin	55.46	55.46
Net Profit Margin	34.1	21.61

Q.9 Debt to Equity ratio of Choice International Ltd?

Choice International Ltd Debt-to-Equity ratio is 0.05, which is lower with the industry average of 0.11, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Choice International Ltd?

Choice International Ltd Debt to cash flow from operations is -0.14, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Choice International Ltd?

Promoters hold 53.65% of the Choice International Ltd, with 11.90% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Choice International Ltd vs industry peers?

Choice International Ltd revenue CAGR is 22.80%, compared to the industry median CAGR of 18.37%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	89.8	18.4
Gross Profit Growth	500	24.6
Operating Profit Growth	133.3	28.8
Net Profit Growth	700	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.06	0.26
ROE	3.1	8.05
ROCE	3.5	10.2
Cash Conversion Cycle (days)	-7.76	-107

Valuation & price assessment

Q.1 Stock return of Choice International Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 53.8% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	53.8%	95.3%	59.8%	9.7%

Q.3 Valuation ratios of Choice International 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	2907.26	479.64	20.01
Price to Book	14.89	14.73	1.64
Price to Sales	534.24	303.99	5.20
EV to EBITDA	1367.52	579.51	6.89

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