Check Before You Invest : Gravity (India) Ltd

BSE: 532015 NSE: ISIN: INE995A01013

| Sector: Textiles & Apparels | Industry: Textile

Snapshot

Q.1 Which industry/sub-sector does Gravity (India) Ltd belong to?

Gravity (India) Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q.2 Is Gravity (India) Ltd a good quality company?

Gravity (India) Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Gravity (India) Ltd undervalued or overvalued?

Gravity (India) Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Gravity (India) Ltd a good buy now?

Gravity (India) 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 Gravity (India) Ltd?

Gravity (India) Ltd revenue growth is -45.8% for FY-2025, which is below its 5-year CAGR of -40.89%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Gravity (India) Ltd?

Gravity (India) Ltd Return on capital employed is -38.26% for FY-2025, which is below its 5-year historical median of -7.03%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Gravity (India) Ltd?

Gravity (India) Ltd Return on Asset is -44.81%, which is below its 5-year historical median of -6.23%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Gravity (India) Ltd?

Gravity (India) Ltd Return on equity is -65.44% for FY-2025, which is below its 5-year historical median of -9.27%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Gravity (India) Ltd?

Gravity (India) Ltd Cash conversion cycle is 222 days, below its 5-year historical median of 304 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.27	0.27
ROE	-65.44	-9.27
ROCE	-38.26	-7.03
Cash Conversion Cycle	222 days	304 days

Q.6 Gross Profit margin of Gravity (India) Ltd?

Gravity (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is -173.6% for FY-2025, which is below its 5-year median of -9.6%, indicating decreasing margins.

Q.7 Operating Profit Margin of Gravity (India) Ltd?

Gravity (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -223.46% for FY-2025, which is below its 5-year median of -12.36% indicating decreasing margins.

Q.8 Net Profit Margin of Gravity (India) Ltd?

Gravity (India) Ltd Net Profit Margin is -164.01% for FY-2025, is below with its 5-year median of -12.15%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-173.6	-9.6
Operating Profit Margin	-223.46	-12.36
Net Profit Margin	-164.01	-12.15

Q.9 Debt to Equity ratio of Gravity (India) Ltd?

Gravity (India) Ltd Debt-to-Equity ratio is 1.34, which is above with the industry average of 0.5, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Gravity (India) Ltd?

Gravity (India) Ltd Debt to cash flow from operations is -7.13, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Gravity (India) Ltd?

Promoters hold 6.05% of the Gravity (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Gravity (India) Ltd vs industry peers?

Gravity (India) Ltd revenue CAGR is -40.89%, compared to the industry median CAGR of 4.23%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-45.8	4.2
Gross Profit Growth	0	8.6
Operating Profit Growth	0	7.5
Net Profit Growth	0	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.27	0.98
ROE	-65.44	6.1
ROCE	-38.26	7.6
Cash Conversion Cycle (days)	222.12	109

Valuation & price assessment

Q.1 Stock return of Gravity (India) Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 20.6% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	20.6%	54.6%	68.6%	284.4%

Q.3 Valuation ratios of Gravity (India) 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	20.43	26.49	19.97
Price to Book	1.52	0.48	1.32
Price to Sales	1.46	0.65	1.06
EV to EBITDA	15.42	-0.96	9.32

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