MoneyWorks4Me

Check Before You Invest : Indo Tech Transformers Ltd

BSE: 532717 NSE: INDOTECH ISIN: INE332H01014
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Electric Equipment

Snapshot

Q.1 Which industry/sub-sector does Indo Tech Transformers Ltd belong to?
Indo Tech Transformers Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.
Q.2 Is Indo Tech Transformers Ltd a good quality company?
Indo Tech Transformers Ltd is a weak quality company, based on a inconsistent 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 Indo Tech Transformers Ltd undervalued or overvalued?
Indo Tech Transformers 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 0-year
Historic Median
Price to Earnings - 5.79
Price to Book - 0.69
Price to Sales - 0.49
EV to EBITDA - 11.14
Q.4 Is Indo Tech Transformers Ltd a good buy now?
Indo Tech Transformers 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.

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

Q.1 Debt to Equity ratio of Indo Tech Transformers Ltd?
Indo Tech Transformers Ltd Debt-to-Equity ratio is 0.00, which is in line with the industry average of , indicating similar to debt levels in the industry.

Q.2 Debt to cash flow from operations of Indo Tech Transformers Ltd?
Indo Tech Transformers Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Indo Tech Transformers Ltd?

Q.1 Promoter shareholding and pledge status of Indo Tech Transformers Ltd?
Promoters hold 72.18% of the Indo Tech Transformers Ltd, with 80.26% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Indo Tech Transformers Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Indo Tech Transformers Ltd vs industry peers?
Indo Tech Transformers Ltd revenue CAGR is %, compared to the industry median CAGR of 6.13%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 0-year
Industry Median
Revenue Growth (%) - 6.1
Gross Profit Growth (%) - 26.3
Operating Profit Growth (%) - 19.6
Net Profit Growth (%) - 27
Operating Efficiency
Current Level 0-year
Industry Median
Asset Turnover (x) - 0.86
ROE (%) - 6.08
ROCE (%) - 8.6
Cash Conversion Cycle (days) - 55

Valuation & price assessment

Q.1 Stock return of Indo Tech Transformers Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 32.4% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
32.4% 84% 96.4% 86.6%
Q.2 Valuation ratios of Indo Tech Transformers Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 5.79, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 0-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings - 5.79 -
Price to Book - 0.69 -
Price to Sales - 0.49 -
EV to EBITDA - 11.14 -

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