Check Before You Invest : Euro Leder Fashion Ltd

Snapshot

Q.1 Which industry/sub-sector does Euro Leder Fashion Ltd belong to?

Euro Leder Fashion Ltd belongs to the FMCG sector, operating specifically within the Leather segment.

Q.2 Is Euro Leder Fashion Ltd a good quality company?

Euro Leder Fashion Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Euro Leder Fashion Ltd undervalued or overvalued?

Euro Leder Fashion Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Euro Leder Fashion Ltd a good buy now?

Euro Leder Fashion 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 Euro Leder Fashion Ltd?

Euro Leder Fashion Ltd revenue growth is -44.7% for FY-2025, which is below its 5-year CAGR of -21.42%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Euro Leder Fashion Ltd?

Euro Leder Fashion Ltd Return on capital employed is 4.75% for FY-2025, which is below its 5-year historical median of 5.46%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Euro Leder Fashion Ltd?

Euro Leder Fashion Ltd Return on Asset is 0.44%, which is below its 5-year historical median of 0.61%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Euro Leder Fashion Ltd?

Euro Leder Fashion Ltd Return on equity is 1.34% for FY-2025, which is below its 5-year historical median of 2.15%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Euro Leder Fashion Ltd?

Euro Leder Fashion Ltd Cash conversion cycle is 231 days, above its 5-year historical median of 172 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	0.42	0.76
ROE	1.34	2.15
ROCE	4.75	5.46
Cash Conversion Cycle	231 days	172 days

Q.6 Gross Profit margin of Euro Leder Fashion Ltd?

Euro Leder Fashion Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.2% for FY-2025, which is above its 5-year median of 2.6%, indicating increasing margins.

Q.7 Operating Profit Margin of Euro Leder Fashion Ltd?

Euro Leder Fashion Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0.02% for FY-2025, which is below its 5-year median of 2.86% indicating decreasing margins.

Q.8 Net Profit Margin of Euro Leder Fashion Ltd?

Euro Leder Fashion Ltd Net Profit Margin is 1.06% for FY-2025, is above with its 5-year median of 0.92%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	3.2	2.6
Operating Profit Margin	0.02	2.86
Net Profit Margin	1.06	0.92

Q.9 Debt to Equity ratio of Euro Leder Fashion Ltd?

Euro Leder Fashion Ltd Debt-to-Equity ratio is 0.92, which is lower with the industry average of 1.22, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Euro Leder Fashion Ltd?

Euro Leder Fashion Ltd Debt to cash flow from operations is 3.02, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Euro Leder Fashion Ltd?

Promoters hold 40.97% of the Euro Leder Fashion Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Euro Leder Fashion Ltd vs industry peers?

Euro Leder Fashion Ltd revenue CAGR is -21.42%, compared to the industry median CAGR of 6.71%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-44.7	6.7
Gross Profit Growth	-37.9	6.7
Operating Profit Growth	-100	NAN
Net Profit Growth	-38.7	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.42	0.7
ROE	1.34	4.05
ROCE	4.75	6.59
Cash Conversion Cycle (days)	231.25	144

Valuation & price assessment

Q.1 Stock return of Euro Leder Fashion Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 4.3% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	4.3%	-2.6%	-4.5%	-19%

Q.3 Valuation ratios of Euro Leder Fashion Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	25.04	29.89	22.73
Price to Book	0.5	0.60	1.12
Price to Sales	0.31	0.26	1.24
EV to EBITDA	10.35	9.92	11.38

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