Check Before You Invest : eMudhra Ltd

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

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

Q: Is eMudhra Ltd a good quality company?

eMudhra Ltd is a average quality company, based on a somewhat consistent 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 eMudhra Ltd undervalued or overvalued?

eMudhra 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. Price to Earnings, Current: 132.8, Historic Median: 217.45. Price to Book, Current: 7.43, Historic Median: 9.90. Price to Sales, Current: 16.01, Historic Median: 21.83. EV to EBITDA, Current: 70.08, Historic Median: 96.70

Q: Is eMudhra Ltd a good buy now?

eMudhra Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of eMudhra Ltd?

eMudhra Ltd revenue growth is 10.8% for FY-2025, which is below its 5-year CAGR of 14.52%, indicating slower growth.

Q: Gross Profit margin of eMudhra Ltd?

eMudhra Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.8% for FY-2025, which is below its 5-year median of 24%, indicating decreasing margins.

Q: Operating Profit Margin of eMudhra Ltd?

eMudhra Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.35% for FY-2025, which is below its 5-year median of 22.58% indicating decreasing margins.

Q: Net Profit Margin of eMudhra Ltd?

eMudhra Ltd Net Profit Margin is 9.2% for FY-2025, is below its 5-year median of 12.18%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 20.8, Historic Median: 24. Operating Profit Margin (%), Current: 16.35, Historic Median: 22.58. Net Profit Margin (%), Current: 9.2, Historic Median: 12.18

Q: Return on Asset of eMudhra Ltd?

eMudhra Ltd Return on Asset is 3.18%, which is below its 5-year historical median of 6.78%, indicating deteriorated asset utilization efficiency.

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

eMudhra Ltd Return on capital employed is 5.04% for FY-2025, which is below its 5-year historical median of 12.33%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Check Before You Invest : eMudhra Ltd

BSE: 543533 NSE: EMUDHRA ISIN: INE01QM01018

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

Snapshot

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

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

Q.2 Is eMudhra Ltd a good quality company?

eMudhra Ltd is a average quality company, based on a somewhat consistent 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 eMudhra Ltd undervalued or overvalued?

eMudhra 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	132.8	217.45
Price to Book	7.43	9.90
Price to Sales	16.01	21.83
EV to EBITDA	70.08	96.70

Q.4 Is eMudhra Ltd a good buy now?

eMudhra Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 eMudhra Ltd?

eMudhra Ltd revenue growth is 10.8% for FY-2025, which is below its 5-year CAGR of 14.52%, indicating slower growth.

Q.2 Gross Profit margin of eMudhra Ltd?

eMudhra Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.8% for FY-2025, which is below its 5-year median of 24%, indicating decreasing margins.

Q.3 Operating Profit Margin of eMudhra Ltd?

eMudhra Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.35% for FY-2025, which is below its 5-year median of 22.58% indicating decreasing margins.

Q.4 Net Profit Margin of eMudhra Ltd?

eMudhra Ltd Net Profit Margin is 9.2% for FY-2025, is below its 5-year median of 12.18%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	20.8	24
Operating Profit Margin (%)	16.35	22.58
Net Profit Margin (%)	9.2	12.18

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of eMudhra Ltd?

eMudhra Ltd Return on Asset is 3.18%, which is below its 5-year historical median of 6.78%, indicating deteriorated asset utilization efficiency.

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

eMudhra Ltd Return on capital employed is 5.04% for FY-2025, which is below its 5-year historical median of 12.33%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.7 Return on Equity (ROE) of eMudhra Ltd?

eMudhra Ltd Return on equity is 3.53% for FY-2025, which is below its 5-year historical median of 9.18%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of eMudhra Ltd?

eMudhra Ltd Cash conversion cycle is 49 days, above its 5-year historical median of 31 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)	0.35	0.56
ROE (%)	3.53	9.18
ROCE (%)	5.04	12.33
Cash Conversion Cycle	49 days	31 days

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

Q.9 Debt to Equity ratio of eMudhra Ltd?

eMudhra Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.01, indicating lower debt levels in the industry.

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

eMudhra Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of eMudhra Ltd?

Q.1 Promoter shareholding and pledge status of eMudhra Ltd?

Promoters hold 54.40% of the eMudhra Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of eMudhra Ltd vs industry peers?

eMudhra Ltd revenue CAGR is 14.52%, compared to the industry median CAGR of 3.17%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	10.8	3.2
Gross Profit Growth (%)	-4.6	18.4
Operating Profit Growth (%)	-13.2	18.8
Net Profit Growth (%)	-9.5	21.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.35	0.46
ROE (%)	3.53	4.22
ROCE (%)	5.04	6.49
Cash Conversion Cycle (days)	49.19	36

Valuation & price assessment

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

Over the last 3 year(s), the stock has delivered a CAGR of 16.54% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	16.5%	-27.2%

Q.2 Valuation ratios of eMudhra Ltd vs historical?

The current P/E ratio of 132.8 is lower than its historical median of 217.45, 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	132.8	217.45	47.38
Price to Book	7.43	9.90	2.64
Price to Sales	16.01	21.83	4.79
EV to EBITDA	70.08	96.70	16.75

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Check Before You Invest : eMudhra Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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