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MoneyWorks4Me

Check Before You Invest : IZMO Ltd

BSE: 532341 NSE: IZMO ISIN: INE848A01014
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does IZMO Ltd belong to?
IZMO Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is IZMO Ltd a good quality company?
IZMO 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 IZMO Ltd undervalued or overvalued?
IZMO 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 5-year
Historic Median
Price to Earnings 21.63 26.54
Price to Book 2.77 2.06
Price to Sales 3.96 9.34
EV to EBITDA 15.97 74.81
Q.4 Is IZMO Ltd a good buy now?
IZMO 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 IZMO Ltd?
IZMO Ltd revenue growth is 26.8% for FY-2026, which is above its 5-year CAGR of 19.66%, indicating faster growth.

Q.2 Gross Profit margin of IZMO Ltd?
IZMO Ltd Gross profit margin which is the profit after deduction of direct costs, is 22.9% for FY-2026, which is in line with its 5-year median of 22.6%, indicating stable margins.

Q.3 Operating Profit Margin of IZMO Ltd?
IZMO Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.57% for FY-2026, which is in line with its 5-year median of 18.57% indicating stable margins.

Q.4 Net Profit Margin of IZMO Ltd?
IZMO Ltd Net Profit Margin is 16.7% for FY-2026, is above its 5-year median of 13.95%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 22.9 22.6
Operating Profit Margin (%) 18.57 18.57
Net Profit Margin (%) 16.7 13.95

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of IZMO Ltd?
IZMO Ltd Return on Asset is 10.23%, which is above its 5-year historical median of 7.6%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of IZMO Ltd?
IZMO Ltd Return on capital employed is 12.7% for FY-2026, which is above its 5-year historical median of 9.53%. 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 IZMO Ltd?
IZMO Ltd Return on equity is 12.43% for FY-2026, which is above its 5-year historical median of 9.03%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of IZMO Ltd?
IZMO Ltd Cash conversion cycle is 130 days, above its 5-year historical median of 72 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) 0.61 0.54
ROE (%) 12.43 9.03
ROCE (%) 12.7 9.53
Cash Conversion Cycle 130 days 72 days

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

Q.9 Debt to Equity ratio of IZMO Ltd?
IZMO Ltd Debt-to-Equity ratio is 0.03, which is above the industry average of 0.02, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of IZMO Ltd?
IZMO Ltd Debt to cash flow from operations is 0.64, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of IZMO Ltd?

Q.1 Promoter shareholding and pledge status of IZMO Ltd?
Promoters hold 34.75% of the IZMO Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of IZMO Ltd vs industry peers?
IZMO Ltd revenue CAGR is 19.66%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 26.8 -
Gross Profit Growth (%) -11 16.9
Operating Profit Growth (%) 35.9 17.6
Net Profit Growth (%) -2 16.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.61 0.52
ROE (%) 12.43 5.19
ROCE (%) 12.7 8.34
Cash Conversion Cycle (days) 129.76 37

Valuation & price assessment

Q.1 Stock return of IZMO Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 31.2% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
31.2% 53.4% 51.5% -10.5%
Q.2 Valuation ratios of IZMO Ltd vs historical?
The current P/E ratio of 21.63 is lower than its historical median of 26.54, indicating that the stock is trading below 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 21.63 26.54 31.33
Price to Book 2.77 2.06 2.61
Price to Sales 3.96 9.34 4.42
EV to EBITDA 15.97 74.81 15.50

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