Check Before You Invest : Elnet Technologies Ltd

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

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

Q: Is Elnet Technologies Ltd a good quality company?

Elnet Technologies Ltd is a good quality company, based on a consistently good 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 Elnet Technologies Ltd undervalued or overvalued?

Elnet 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. Price to Earnings, Current: 6.73, Historic Median: 6.88. Price to Book, Current: 0.77, Historic Median: 0.80. Price to Sales, Current: 5.42, Historic Median: 4.35. EV to EBITDA, Current: 1.78, Historic Median: 1.42

Q: Is Elnet Technologies Ltd a good buy now?

Elnet 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

Q: Revenue growth of Elnet Technologies Ltd?

Elnet Technologies Ltd revenue growth is -11.9% for FY-2025, which is below its 5-year CAGR of -0.85%, indicating slower growth.

Q: Gross Profit margin of Elnet Technologies Ltd?

Elnet Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 106.4% for FY-2025, which is above its 5-year median of 92.8%, indicating increasing margins.

Q: Operating Profit Margin of Elnet Technologies Ltd?

Elnet Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 63.96% for FY-2025, which is in line with its 5-year median of 67.16% indicating stable margins.

Q: Net Profit Margin of Elnet Technologies Ltd?

Elnet Technologies Ltd Net Profit Margin is 76.21% for FY-2025, is above its 5-year median of 57.11%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 106.4, Historic Median: 92.8. Operating Profit Margin (%), Current: 63.96, Historic Median: 67.16. Net Profit Margin (%), Current: 76.21, Historic Median: 57.11

Q: Return on Asset of Elnet Technologies Ltd?

Elnet Technologies Ltd Return on Asset is 10.49%, which is in line with its 5-year historical median of 10.49%, indicating stable asset utilization efficiency.

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

Elnet Technologies Ltd Return on capital employed is 15.36% for FY-2025, which is below its 5-year historical median of 16.21%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Elnet Technologies Ltd

BSE: 517477 NSE: ELNET ISIN: INE033C01019

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

Snapshot

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

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

Q.2 Is Elnet Technologies Ltd a good quality company?

Elnet Technologies Ltd is a good quality company, based on a consistently good 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 Elnet Technologies Ltd undervalued or overvalued?

Elnet 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	5-year Historic Median
Price to Earnings	6.73	6.88
Price to Book	0.77	0.80
Price to Sales	5.42	4.35
EV to EBITDA	1.78	1.42

Q.4 Is Elnet Technologies Ltd a good buy now?

Elnet 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 Elnet Technologies Ltd?

Elnet Technologies Ltd revenue growth is -11.9% for FY-2025, which is below its 5-year CAGR of -0.85%, indicating slower growth.

Q.2 Gross Profit margin of Elnet Technologies Ltd?

Elnet Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 106.4% for FY-2025, which is above its 5-year median of 92.8%, indicating increasing margins.

Q.3 Operating Profit Margin of Elnet Technologies Ltd?

Elnet Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 63.96% for FY-2025, which is in line with its 5-year median of 67.16% indicating stable margins.

Q.4 Net Profit Margin of Elnet Technologies Ltd?

Elnet Technologies Ltd Net Profit Margin is 76.21% for FY-2025, is above its 5-year median of 57.11%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	106.4	92.8
Operating Profit Margin (%)	63.96	67.16
Net Profit Margin (%)	76.21	57.11

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Elnet Technologies Ltd?

Elnet Technologies Ltd Return on Asset is 10.49%, which is in line with its 5-year historical median of 10.49%, indicating stable asset utilization efficiency.

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

Elnet Technologies Ltd Return on capital employed is 15.36% for FY-2025, which is below its 5-year historical median of 16.21%. 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 Elnet Technologies Ltd?

Elnet Technologies Ltd Return on equity is 11.88% for FY-2025, which is in line with its 5-year historical median of 12.21%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Elnet Technologies Ltd?

Elnet Technologies Ltd Cash conversion cycle is 17 days, in line with its 5-year historical median of 17 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.14	0.18
ROE (%)	11.88	12.21
ROCE (%)	15.36	16.21
Cash Conversion Cycle	17 days	17 days

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

Q.9 Debt to Equity ratio of Elnet Technologies Ltd?

Elnet Technologies Ltd Debt-to-Equity ratio is 0.03, 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 Elnet Technologies Ltd?

Elnet Technologies Ltd Debt to cash flow from operations is 0.85, which is at a healthy level.

Ownership & governance

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

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

Promoters hold 52.85% of the Elnet Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

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

Elnet Technologies Ltd revenue CAGR is -0.85%, compared to the industry median CAGR of 2.48%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-11.9	2.5
Gross Profit Growth (%)	-4	18.3
Operating Profit Growth (%)	-16.7	18
Net Profit Growth (%)	5.9	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.14	0.46
ROE (%)	11.88	3.97
ROCE (%)	15.36	6.41
Cash Conversion Cycle (days)	17.1	36

Valuation & price assessment

Q.1 Stock return of Elnet Technologies Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 14.5% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	14.5%	19.3%	22.5%	-4.2%

Q.2 Valuation ratios of Elnet Technologies Ltd vs historical?

The current P/E ratio of 6.73 is in line with than its historical median of 6.88, indicating that the stock is trading near 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	6.73	6.88	47.38
Price to Book	0.77	0.80	2.64
Price to Sales	5.42	4.35	4.79
EV to EBITDA	1.78	1.42	16.75

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Check Before You Invest : Elnet Technologies Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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