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Check Before You Invest : ITL Industries Ltd

BSE: 522183 NSE: ISIN: INE478D01014
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does ITL Industries Ltd belong to?
ITL Industries Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is ITL Industries Ltd a good quality company?
ITL Industries 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 ITL Industries Ltd undervalued or overvalued?
ITL Industries Ltd appears Fair, as its key valuation ratios are in line with 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 10.08 9.79
Price to Book 1.17 1.17
Price to Sales 0.52 0.52
EV to EBITDA 6.72 6.69
Q.4 Is ITL Industries Ltd a good buy now?
ITL Industries 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.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of ITL Industries Ltd?
ITL Industries Ltd revenue growth is 16.2% for FY-2025, which is below its 5-year CAGR of 18.27%, indicating slower growth.

Q.2 Gross Profit margin of ITL Industries Ltd?
ITL Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.8% for FY-2025, which is in line with its 5-year median of 8%, indicating stable margins.

Q.3 Operating Profit Margin of ITL Industries Ltd?
ITL Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.08% for FY-2025, which is in line with its 5-year median of 7.16% indicating stable margins.

Q.4 Net Profit Margin of ITL Industries Ltd?
ITL Industries Ltd Net Profit Margin is 4.97% for FY-2025, is below its 5-year median of 5.32%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 7.8 8
Operating Profit Margin (%) 7.08 7.16
Net Profit Margin (%) 4.97 5.32

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of ITL Industries Ltd?
ITL Industries Ltd Return on Asset is 7.27%, which is in line with its 5-year historical median of 7.27%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of ITL Industries Ltd?
ITL Industries Ltd Return on capital employed is 15.89% for FY-2025, which is in line with its 5-year historical median of 15.89%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of ITL Industries Ltd?
ITL Industries Ltd Return on equity is 12.2% for FY-2025, which is in line with its 5-year historical median of 12.2%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of ITL Industries Ltd?
ITL Industries Ltd Cash conversion cycle is 106 days, in line with its 5-year historical median of 106 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 (x) 1.46 1.43
ROE (%) 12.2 12.2
ROCE (%) 15.89 15.89
Cash Conversion Cycle 106 days 106 days

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

Q.9 Debt to Equity ratio of ITL Industries Ltd?
ITL Industries Ltd Debt-to-Equity ratio is 0.24, which is above the industry average of 0.18, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of ITL Industries Ltd?
ITL Industries Ltd Debt to cash flow from operations is -154.24, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of ITL Industries Ltd?

Q.1 Promoter shareholding and pledge status of ITL Industries Ltd?
Promoters hold 44.98% of the ITL Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does ITL Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of ITL Industries Ltd vs industry peers?
ITL Industries Ltd revenue CAGR is 18.27%, compared to the industry median CAGR of 3.04%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 16.2 3
Gross Profit Growth (%) 7.7 23.6
Operating Profit Growth (%) 30 21.7
Net Profit Growth (%) - 27.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.46 0.89
ROE (%) 12.2 12.09
ROCE (%) 15.89 14.64
Cash Conversion Cycle (days) 106.48 98

Valuation & price assessment

Q.1 Stock return of ITL Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 22.6% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
22.6% 17.2% 15.8% -20.5%
Q.2 Valuation ratios of ITL Industries Ltd vs historical?
The current P/E ratio of 10.08 is in line with than its historical median of 9.79, 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 10.08 9.79 29.36
Price to Book 1.17 1.17 2.91
Price to Sales 0.52 0.52 2.93
EV to EBITDA 6.72 6.69 15.77

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