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Check Before You Invest : Earkart Ltd

BSE: 544549 NSE: ISIN: INE1A8F01035
  |   Sector:  Healthcare   |   Industry:  Medical Equipment/Supplies/Accessories

Snapshot

Q.1 Which industry/sub-sector does Earkart Ltd belong to?
Earkart Ltd belongs to the Healthcare sector, operating specifically within the Medical Equipment/Supplies/Accessories segment.
Q.2 Is Earkart Ltd a good quality company?
Earkart Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Earkart Ltd undervalued or overvalued?
Earkart Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Earkart Ltd a good buy now?
Earkart 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

Q.1 Revenue growth of Earkart Ltd?
Earkart Ltd revenue growth is 35.8% for FY-2025 , which is above its 5 year CAGR of 0% , indicating faster growth.
Q.2 Gross Profit margin of Earkart Ltd?
Earkart Ltd Gross profit margin which is the profit after deduction of direct costs, is 21.4% for FY-2025 , which is above its 5 year median of 13.45% , indicating increasing margins.
Q.3 Operating Profit Margin of Earkart Ltd?
Earkart Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 22.26% for FY-2025 , which is above its 5 year median of 13.96% indicating increasing margins.
Q.4 Net Profit Margin of Earkart Ltd?
Earkart Ltd Net Profit Margin is 15.41% for FY-2025 , is above with its 5 year median of 9.98%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 21.4 13.45
Operating Profit Margin 22.26 13.96
Net Profit Margin 15.41 9.98
Q.5 Return on Asset of Earkart Ltd?
Earkart Ltd Return on Asset is 26.86(x), which is above its 5 year historical median of 19.79(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Earkart Ltd?
Earkart Ltd Return on equity is 40.63% for FY-2025 , which is above its historical median of 31.95%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Earkart Ltd?
Earkart Ltd Return on capital employed is 44.39% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Earkart Ltd?
Earkart Ltd Cash conversion cycle is 137 , above its historical median of 86 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.74 2.27
ROE 40.63 31.95
ROCE 44.39 34.21
Cash Conversion Cycle 137 86
Q.9 Debt to Equity ratio of Earkart Ltd?
Earkart Ltd Debt-to-Equity ratio is 0.25 , which is lower with the industry average of 0.36 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Earkart Ltd?
Earkart Ltd Debt to cash flow from operations is 6.97 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Earkart Ltd?
Promoters hold 57.34% of the Earkart Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Earkart Ltd vs industry peers?
Earkart Ltd revenue CAGR is 0.00% , compared to the industry median CAGR of 1.45% , indicating stable growth and maintaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 43.1 36.5
Gross Profit 9.2 4.1
Operating Profit 10 3.3
Net Profit 7 2.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.74 0.73
ROE 40.63 15.79
ROCE 44.39 20.14
Cash Conversion Cycle 136.71 86

Valuation & price assessment

Q.1 Stock return of Earkart Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 0% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - - -
Q.3 Valuation ratios of Earkart Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 26.1 36.20 148.25
Price to Book 2.69 3.73 3.50
Price to Sales 4.02 5.58 3.36
EV to EBITDA 18.38 25.31 19.40

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