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Check Before You Invest : Indian Terrain Fashions Ltd

BSE: 533329 NSE: INDTERRAIN ISIN: INE611L01021
  |   Sector:  Retail   |   Industry:  Retailing

Snapshot

Q.1 Which industry/sub-sector does Indian Terrain Fashions Ltd belong to?
Indian Terrain Fashions Ltd belongs to the Retail sector, operating specifically within the Retailing segment.
Q.2 Is Indian Terrain Fashions Ltd a good quality company?
Indian Terrain Fashions 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 Indian Terrain Fashions Ltd undervalued or overvalued?
Indian Terrain Fashions 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 - -
Price to Book 0.88 1.14
Price to Sales 0.45 0.60
EV to EBITDA 7.34 7.88
Q.4 Is Indian Terrain Fashions Ltd a good buy now?
Indian Terrain Fashions Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 Indian Terrain Fashions Ltd?
Indian Terrain Fashions Ltd revenue growth is -25.3% for FY-2025, which is below its 5-year CAGR of -1.62%, indicating slower growth.

Q.2 Gross Profit margin of Indian Terrain Fashions Ltd?
Indian Terrain Fashions Ltd Gross profit margin which is the profit after deduction of direct costs, is -6.6% for FY-2025, which is below its 5-year median of 2.4%, indicating decreasing margins.

Q.3 Operating Profit Margin of Indian Terrain Fashions Ltd?
Indian Terrain Fashions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -1.78% for FY-2025, which is below its 5-year median of 6.77% indicating decreasing margins.

Q.4 Net Profit Margin of Indian Terrain Fashions Ltd?
Indian Terrain Fashions Ltd Net Profit Margin is -12.52% for FY-2025, is below its 5-year median of -3.27%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -6.6 2.4
Operating Profit Margin (%) -1.78 6.77
Net Profit Margin (%) -12.52 -3.27

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Indian Terrain Fashions Ltd?
Indian Terrain Fashions Ltd Return on Asset is -9.21%, which is below its 5-year historical median of -2.92%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Indian Terrain Fashions Ltd?
Indian Terrain Fashions Ltd Return on capital employed is -7.16% for FY-2025, which is below its 5-year historical median of 4.22%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Indian Terrain Fashions Ltd?
Indian Terrain Fashions Ltd Return on equity is -23.63% for FY-2025, which is below its 5-year historical median of -7.31%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Indian Terrain Fashions Ltd?
Indian Terrain Fashions Ltd Cash conversion cycle is 226 days, above its 5-year historical median of 178 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) 0.75 0.87
ROE (%) -23.63 -7.31
ROCE (%) -7.16 4.22
Cash Conversion Cycle 226 days 178 days

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

Q.9 Debt to Equity ratio of Indian Terrain Fashions Ltd?
Indian Terrain Fashions Ltd Debt-to-Equity ratio is 0.53, which is above the industry average of 0.25, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Indian Terrain Fashions Ltd?
Indian Terrain Fashions Ltd Debt to cash flow from operations is 4.48, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Indian Terrain Fashions Ltd?

Q.1 Promoter shareholding and pledge status of Indian Terrain Fashions Ltd?
Promoters hold 31.55% of the Indian Terrain Fashions Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Indian Terrain Fashions Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Indian Terrain Fashions Ltd vs industry peers?
Indian Terrain Fashions Ltd revenue CAGR is -1.62%, compared to the industry median CAGR of 0.00%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -25.3 0
Gross Profit Growth (%) -291.7 19.8
Operating Profit Growth (%) -123.3 16.2
Net Profit Growth (%) 0 18.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.75 1.11
ROE (%) -23.63 3.58
ROCE (%) -7.16 11.9
Cash Conversion Cycle (days) 226.42 38

Valuation & price assessment

Q.1 Stock return of Indian Terrain Fashions Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -12.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-12.5% 3% -16.7% -1.3%
Q.2 Valuation ratios of Indian Terrain Fashions Ltd vs historical?
The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near 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 - - 37.15
Price to Book 0.88 1.14 2.76
Price to Sales 0.45 0.60 1.31
EV to EBITDA 7.34 7.88 14.00

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