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Check Before You Invest : Chatterbox Technologies Ltd

BSE: 544546 NSE: ISIN: INE1B4801017
  |   Sector:  Miscellaneous   |   Industry:  Professional Services

Snapshot

Q.1 Which industry/sub-sector does Chatterbox Technologies Ltd belong to?
Chatterbox Technologies Ltd belongs to the Miscellaneous sector, operating specifically within the Professional Services segment.
Q.2 Is Chatterbox Technologies Ltd a good quality company?
Chatterbox Technologies Ltd is a quality company, based on a 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 Chatterbox Technologies Ltd undervalued or overvalued?
Chatterbox Technologies 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 3-year
Historic Median
Price to Earnings 10.81 11.15
Price to Book 1.4 1.46
Price to Sales 1.62 1.67
EV to EBITDA 7.63 7.87
Q.4 Is Chatterbox Technologies Ltd a good buy now?
Chatterbox Technologies 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 Chatterbox Technologies Ltd?
Chatterbox Technologies Ltd revenue growth is 7.8% for FY-2025, which is below its 3-year CAGR of 23.07%, indicating slower growth.

Q.2 Gross Profit margin of Chatterbox Technologies Ltd?
Chatterbox Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.6% for FY-2025, which is in line with its 3-year median of 20.6%, indicating stable margins.

Q.3 Operating Profit Margin of Chatterbox Technologies Ltd?
Chatterbox Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 20.14% for FY-2025, which is in line with its 3-year median of 20.14% indicating stable margins.

Q.4 Net Profit Margin of Chatterbox Technologies Ltd?
Chatterbox Technologies Ltd Net Profit Margin is 14.98% for FY-2025, is in line with its 3-year median of 14.98%, indicating stable margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 20.6 20.6
Operating Profit Margin (%) 20.14 20.14
Net Profit Margin (%) 14.98 14.98

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Chatterbox Technologies Ltd?
Chatterbox Technologies Ltd Return on Asset is 28.01%, which is in line with its 3-year historical median of 28.01%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Chatterbox Technologies Ltd?
Chatterbox Technologies Ltd Return on capital employed is 56.77% for FY-2025, which is in line with its 3-year historical median of 56.77%. 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 Chatterbox Technologies Ltd?
Chatterbox Technologies Ltd Return on equity is 41.76% for FY-2025, which is in line with its 3-year historical median of 41.76%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Chatterbox Technologies Ltd?
Chatterbox Technologies Ltd Cash conversion cycle is 5 days, below its 3-year historical median of 11 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 1.87 2.44
ROE (%) 41.76 41.76
ROCE (%) 56.77 56.77
Cash Conversion Cycle 5 days 11 days

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

Q.9 Debt to Equity ratio of Chatterbox Technologies Ltd?
Chatterbox Technologies Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.08, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Chatterbox Technologies Ltd?
Chatterbox Technologies Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Chatterbox Technologies Ltd?

Q.1 Promoter shareholding and pledge status of Chatterbox Technologies Ltd?
Promoters hold 60.39% of the Chatterbox Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Chatterbox Technologies Ltd vs industry peers?
Chatterbox Technologies Ltd revenue CAGR is 23.07%, compared to the industry median CAGR of 25.42%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 7.8 25.4
Gross Profit Growth (%) 0.8 34.2
Operating Profit Growth (%) 2.3 27.9
Net Profit Growth (%) 3.9 32.6
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.87 1.43
ROE (%) 41.76 13.43
ROCE (%) 56.77 15.28
Cash Conversion Cycle (days) 4.93 60

Valuation & price assessment

Q.1 Stock return of Chatterbox Technologies 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 Chatterbox Technologies Ltd vs historical?
The current P/E ratio of 10.81 is in line with than its historical median of 11.15, indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 10.81 11.15 28.29
Price to Book 1.4 1.46 2.30
Price to Sales 1.62 1.67 1.79
EV to EBITDA 7.63 7.87 14.93

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