MoneyWorks4Me

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 Fair, as its key valuation ratios are in line with 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 42.73 203.67
Price to Book 5.32 9.21
Price to Sales 6.6 20.67
EV to EBITDA 26.49 89.74
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 35.1% for FY-2026, which is below its 5-year CAGR of 39.76%, 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 23.6% for FY-2026, which is below its 5-year median of 30.4%, 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 22.3% for FY-2026, which is below its 5-year median of 29.53% indicating decreasing margins.

Q.4 Net Profit Margin of eMudhra Ltd?
eMudhra Ltd Net Profit Margin is 15.69% for FY-2026, is below its 5-year median of 20.46%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 23.6 30.4
Operating Profit Margin (%) 22.3 29.53
Net Profit Margin (%) 15.69 20.46

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of eMudhra Ltd?
eMudhra Ltd Return on Asset is 10.57%, which is below its 5-year historical median of 12.62%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of eMudhra Ltd?
eMudhra Ltd Return on capital employed is 16.23% for FY-2026, which is below its 5-year historical median of 17.86%. 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 eMudhra Ltd?
eMudhra Ltd Return on equity is 13.53% for FY-2026, which is below its 5-year historical median of 14.7%, 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 56 days, above its 5-year historical median of 53 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) 0.67 0.67
ROE (%) 13.53 14.7
ROCE (%) 16.23 17.86
Cash Conversion Cycle 56 days 53 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 0.03, 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 eMudhra Ltd?
eMudhra Ltd Debt to cash flow from operations is 0.18, 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 39.76%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 35.1 -
Gross Profit Growth (%) 26.7 14.9
Operating Profit Growth (%) 25.8 14.9
Net Profit Growth (%) 26.4 15.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.67 0.48
ROE (%) 13.53 4.99
ROCE (%) 16.23 7.31
Cash Conversion Cycle (days) 56.41 37

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 10.24% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - 10.2% -4.5%
Q.2 Valuation ratios of eMudhra Ltd vs historical?
The current P/E ratio of 42.73 is lower than its historical median of 203.67, 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 42.73 203.67 47.38
Price to Book 5.32 9.21 2.64
Price to Sales 6.6 20.67 4.79
EV to EBITDA 26.49 89.74 16.75

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