Check Before You Invest : Interarch Building Solutions Ltd

Snapshot

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

Interarch Building Solutions Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q.2 Is Interarch Building Solutions Ltd a good quality company?

Interarch Building Solutions Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Interarch Building Solutions Ltd undervalued or overvalued?

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

Q.4 Is Interarch Building Solutions Ltd a good buy now?

Interarch Building Solutions Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Interarch Building Solutions Ltd?

Interarch Building Solutions Ltd revenue growth is 12.4% for FY-2025, which is below its 5-year CAGR of 15.11%, indicating slower growth.

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

Interarch Building Solutions Ltd Return on capital employed is 24.95% for FY-2025, which is in line with its 5-year historical median of 24.95%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Interarch Building Solutions Ltd?

Interarch Building Solutions Ltd Return on Asset is 11.16%, which is in line with its 5-year historical median of 11.16%, indicating stable asset utilization efficiency.

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

Interarch Building Solutions Ltd Return on equity is 18.15% for FY-2025, which is in line with its 5-year historical median of 18.15%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Interarch Building Solutions Ltd?

Interarch Building Solutions Ltd Cash conversion cycle is 52 days, in line with its 5-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	5-year Historic Median
Asset Turnover	1.51	1.63
ROE	18.15	18.15
ROCE	24.95	24.95
Cash Conversion Cycle	52 days	50 days

Q.6 Gross Profit margin of Interarch Building Solutions Ltd?

Interarch Building Solutions Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.6% for FY-2025, which is above its 5-year median of 9.6%, indicating increasing margins.

Q.7 Operating Profit Margin of Interarch Building Solutions Ltd?

Interarch Building Solutions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.89% for FY-2025, which is above its 5-year median of 9.27% indicating increasing margins.

Q.8 Net Profit Margin of Interarch Building Solutions Ltd?

Interarch Building Solutions Ltd Net Profit Margin is 7.42% for FY-2025, is above with its 5-year median of 6.67%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	10.6	9.6
Operating Profit Margin	9.89	9.27
Net Profit Margin	7.42	6.67

Q.9 Debt to Equity ratio of Interarch Building Solutions Ltd?

Interarch Building Solutions Ltd Debt-to-Equity ratio is 0.02, which is lower with the industry average of 0.39, indicating lower debt levels in the industry.

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

Interarch Building Solutions Ltd Debt to cash flow from operations is 0.32, which is at a healthy level.

Ownership & governance

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

Promoters hold 59.43% of the Interarch Building Solutions Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Interarch Building Solutions Ltd revenue CAGR is 15.11%, compared to the industry median CAGR of 9.45%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	12.4	9.5
Gross Profit Growth	24.2	14.9
Operating Profit Growth	20	11.1
Net Profit Growth	25.6	18.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.51	0.68
ROE	18.15	8.34
ROCE	24.95	11.34
Cash Conversion Cycle (days)	51.51	57

Valuation & price assessment

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

Over the last 1 year(s), the stock has delivered a CAGR of 25.46% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	25.5%

Q.3 Valuation ratios of Interarch Building Solutions 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	25.61	30.15	21.62
Price to Book	4.18	4.09	1.75
Price to Sales	1.88	2.10	1.50
EV to EBITDA	16.43	17.93	11.53

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