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Check Before You Invest : Croissance Ltd

BSE: 531909 NSE: ISIN: INE587J01027
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does Croissance Ltd belong to?
Croissance Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is Croissance Ltd a good quality company?
Croissance 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 Croissance Ltd undervalued or overvalued?
Croissance Ltd appears Somewhat Undervalued, as its key valuation ratios are lower 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 19.54 80.45
Price to Book 1.16 4.15
Price to Sales 4592.72 142.62
EV to EBITDA 19.25 205.29
Q.4 Is Croissance Ltd a good buy now?
Croissance 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 Croissance Ltd?
Croissance Ltd revenue growth is -84.9% for FY-2025, which is below its 5-year CAGR of -13.79%, indicating slower growth.

Q.2 Gross Profit margin of Croissance Ltd?
Croissance Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.9% for FY-2025, which is below its 5-year median of 27.3%, indicating decreasing margins.

Q.3 Operating Profit Margin of Croissance Ltd?
Croissance Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -47.28% for FY-2025, which is below its 5-year median of 22.58% indicating decreasing margins.

Q.4 Net Profit Margin of Croissance Ltd?
Croissance Ltd Net Profit Margin is 3.25% for FY-2025, is below its 5-year median of 18.8%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 9.9 27.3
Operating Profit Margin (%) -47.28 22.58
Net Profit Margin (%) 3.25 18.8

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Croissance Ltd?
Croissance Ltd Return on Asset is 0.02%, which is below its 5-year historical median of 0.58%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Croissance Ltd?
Croissance Ltd Return on capital employed is 0.15% for FY-2025, which is below its 5-year historical median of 1.14%. 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 Croissance Ltd?
Croissance Ltd Return on equity is 0.04% for FY-2025, which is below its 5-year historical median of 0.88%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Croissance Ltd?
Croissance Ltd Cash conversion cycle is 1736 days, above its 5-year historical median of 155 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 (x) 0.01 0.02
ROE (%) 0.04 0.88
ROCE (%) 0.15 1.14
Cash Conversion Cycle 1736 days 155 days

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

Q.9 Debt to Equity ratio of Croissance Ltd?
Croissance Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.23, indicating lower debt levels in the industry.

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

Ownership & governance

D: Promoter shareholding and pledge status of Croissance Ltd?

Q.1 Promoter shareholding and pledge status of Croissance Ltd?
Promoters hold 47.04% of the Croissance Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Croissance Ltd vs industry peers?
Croissance Ltd revenue CAGR is -13.79%, compared to the industry median CAGR of 0.00%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -84.9 0
Gross Profit Growth (%) -88.9 14.9
Operating Profit Growth (%) -162.5 10.4
Net Profit Growth (%) -100 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.01 0.1
ROE (%) 0.04 1.36
ROCE (%) 0.15 3.88
Cash Conversion Cycle (days) 1736.08 439

Valuation & price assessment

Q.1 Stock return of Croissance Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -8.2% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-8.2% -13.9% -41.1% -49.8%
Q.2 Valuation ratios of Croissance Ltd vs historical?
The current P/E ratio of 19.54 is lower than its historical median of 80.45, indicating that the stock is trading below 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 19.54 80.45 33.43
Price to Book 1.16 4.15 1.53
Price to Sales 4592.72 142.62 5.23
EV to EBITDA 19.25 205.29 14.43

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