Check Before You Invest : Infonative Solutions Ltd

BSE: 544393 NSE: ISIN: INE12IB01015

| Sector: IT & ITES | Industry: IT - Education

Snapshot

Q.1 Which industry/sub-sector does Infonative Solutions Ltd belong to?

Infonative Solutions Ltd belongs to the IT & ITES sector, operating specifically within the IT - Education segment.

Q.2 Is Infonative Solutions Ltd a good quality company?

Infonative Solutions Ltd is a quality company, based on a 4-year financial track record.

Q.3 Is Infonative Solutions Ltd undervalued or overvalued?

Infonative Solutions Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Infonative Solutions Ltd a good buy now?

Infonative Solutions 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 Infonative Solutions Ltd?

Infonative Solutions Ltd revenue growth is 22.5% for FY-2025, which is above its 3-year CAGR of 5.76%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Infonative Solutions Ltd?

Infonative Solutions Ltd Return on capital employed is 51.6% for FY-2025, which is above its 3-year historical median of 18.02%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Infonative Solutions Ltd?

Infonative Solutions Ltd Return on Asset is 31.03%, which is above its 3-year historical median of 10.68%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Infonative Solutions Ltd?

Infonative Solutions Ltd Return on equity is 45.47% for FY-2025, which is above its 3-year historical median of 15.46%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Infonative Solutions Ltd?

Infonative Solutions Ltd Cash conversion cycle is 50 days, in line with its 3-year historical median of 50 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover	1.13	1.3
ROE	45.47	15.46
ROCE	51.6	18.02
Cash Conversion Cycle	50 days	50 days

Q.6 Gross Profit margin of Infonative Solutions Ltd?

Infonative Solutions Ltd Gross profit margin which is the profit after deduction of direct costs, is 40.2% for FY-2025, which is above its 3-year median of 15.3%, indicating increasing margins.

Q.7 Operating Profit Margin of Infonative Solutions Ltd?

Infonative Solutions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 39.29% for FY-2025, which is above its 3-year median of 13.96% indicating increasing margins.

Q.8 Net Profit Margin of Infonative Solutions Ltd?

Infonative Solutions Ltd Net Profit Margin is 27.44% for FY-2025, is above with its 3-year median of 8.2%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin	40.2	15.3
Operating Profit Margin	39.29	13.96
Net Profit Margin	27.44	8.2

Q.9 Debt to Equity ratio of Infonative Solutions Ltd?

Infonative Solutions Ltd Debt-to-Equity ratio is 0.25, which is above with the industry average of 0.12, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Infonative Solutions Ltd?

Infonative Solutions Ltd Debt to cash flow from operations is 0.83, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Infonative Solutions Ltd?

Promoters hold 69.28% of the Infonative Solutions Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Infonative Solutions Ltd vs industry peers?

Infonative Solutions Ltd revenue CAGR is 5.76%, compared to the industry median CAGR of 9.5%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	22.5	9.5
Gross Profit Growth	222.6	9.2
Operating Profit Growth	249.2	3.9
Net Profit Growth	310.3	-3

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	1.13	0.32
ROE	45.47	2.08
ROCE	51.6	2.84
Cash Conversion Cycle (days)	49.77	31

Valuation & price assessment

Q.1 Stock return of Infonative Solutions Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -26.75% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-26.8%

Q.3 Valuation ratios of Infonative Solutions Ltd vs historical?

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

Q.4 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	5.22	6.50	32.57
Price to Book	0.76	1.07	1.25
Price to Sales	1.43	1.78	6.62
EV to EBITDA	3.85	4.60	12.20

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