Check Before You Invest : Karnawati Innovation Ltd

Q: Which industry/sub-sector does Karnawati Innovation Ltd belong to?

Karnawati Innovation Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.

Q: Is Karnawati Innovation Ltd a good quality company?

Karnawati Innovation Ltd is a quality company, based on a 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: Is Karnawati Innovation Ltd undervalued or overvalued?

Karnawati Innovation Ltd appears 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. Price to Earnings, Current: 2.33, Historic Median: 62.88. Price to Book, Current: 1.82, Historic Median: 7.44. Price to Sales, Current: 0.1, Historic Median: 2.55. EV to EBITDA, Current: 1.79, Historic Median: 61.79

Q: Is Karnawati Innovation Ltd a good buy now?

Karnawati Innovation 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

Q: Revenue growth of Karnawati Innovation Ltd?

Karnawati Innovation Ltd revenue growth is -76.9% for FY-2025, which is below its 5-year CAGR of -5.59%, indicating slower growth.

Q: Gross Profit margin of Karnawati Innovation Ltd?

Karnawati Innovation Ltd Gross profit margin which is the profit after deduction of direct costs, is 27.9% for FY-2025, which is above its 5-year median of 4.4%, indicating increasing margins.

Q: Operating Profit Margin of Karnawati Innovation Ltd?

Karnawati Innovation Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 27.92% for FY-2025, which is above its 5-year median of 4.37% indicating increasing margins.

Q: Net Profit Margin of Karnawati Innovation Ltd?

Karnawati Innovation Ltd Net Profit Margin is 15.78% for FY-2025, is above its 5-year median of 4.37%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 27.9, Historic Median: 4.4. Operating Profit Margin (%), Current: 27.92, Historic Median: 4.37. Net Profit Margin (%), Current: 15.78, Historic Median: 4.37

Q: Return on Asset of Karnawati Innovation Ltd?

Karnawati Innovation Ltd Return on Asset is 5.55%, which is in line with its 5-year historical median of 5.55%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Karnawati Innovation Ltd?

Karnawati Innovation Ltd Return on capital employed is 20.81% for FY-2025, which is in line with its 5-year historical median of 20.81%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Karnawati Innovation Ltd

BSE: 531671 NSE: ISIN: INE214D01021

| Sector: Miscellaneous | Industry: Trading

Snapshot

Q.1 Which industry/sub-sector does Karnawati Innovation Ltd belong to?

Karnawati Innovation Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.

Q.2 Is Karnawati Innovation Ltd a good quality company?

Karnawati Innovation Ltd is a quality company, based on a 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 Karnawati Innovation Ltd undervalued or overvalued?

Karnawati Innovation Ltd appears 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	2.33	62.88
Price to Book	1.82	7.44
Price to Sales	0.1	2.55
EV to EBITDA	1.79	61.79

Q.4 Is Karnawati Innovation Ltd a good buy now?

Karnawati Innovation 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 Karnawati Innovation Ltd?

Karnawati Innovation Ltd revenue growth is -76.9% for FY-2025, which is below its 5-year CAGR of -5.59%, indicating slower growth.

Q.2 Gross Profit margin of Karnawati Innovation Ltd?

Karnawati Innovation Ltd Gross profit margin which is the profit after deduction of direct costs, is 27.9% for FY-2025, which is above its 5-year median of 4.4%, indicating increasing margins.

Q.3 Operating Profit Margin of Karnawati Innovation Ltd?

Karnawati Innovation Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 27.92% for FY-2025, which is above its 5-year median of 4.37% indicating increasing margins.

Q.4 Net Profit Margin of Karnawati Innovation Ltd?

Karnawati Innovation Ltd Net Profit Margin is 15.78% for FY-2025, is above its 5-year median of 4.37%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	27.9	4.4
Operating Profit Margin (%)	27.92	4.37
Net Profit Margin (%)	15.78	4.37

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Karnawati Innovation Ltd?

Karnawati Innovation Ltd Return on Asset is 5.55%, which is in line with its 5-year historical median of 5.55%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Karnawati Innovation Ltd?

Karnawati Innovation Ltd Return on capital employed is 20.81% for FY-2025, which is in line with its 5-year historical median of 20.81%. 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 Karnawati Innovation Ltd?

Karnawati Innovation Ltd Return on equity is 13.16% for FY-2025, which is in line with its 5-year historical median of 13.16%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Karnawati Innovation Ltd?

Karnawati Innovation Ltd Cash conversion cycle is 32 days, above its 5-year historical median of 17 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)	0.35	1.46
ROE (%)	13.16	13.16
ROCE (%)	20.81	20.81
Cash Conversion Cycle	32 days	17 days

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

Q.9 Debt to Equity ratio of Karnawati Innovation Ltd?

Karnawati Innovation Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.03, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Karnawati Innovation Ltd?

Karnawati Innovation Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Karnawati Innovation Ltd?

Q.1 Promoter shareholding and pledge status of Karnawati Innovation Ltd?

Promoters hold 0.00% of the Karnawati Innovation Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Karnawati Innovation Ltd vs industry peers?

Karnawati Innovation Ltd revenue CAGR is -5.59%, compared to the industry median CAGR of 0%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-76.9	-
Gross Profit Growth (%)	13	17.9
Operating Profit Growth (%)	13	16.4
Net Profit Growth (%)	-25	17.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.35	0.52
ROE (%)	13.16	2.05
ROCE (%)	20.81	3.6
Cash Conversion Cycle (days)	31.83	46

Valuation & price assessment

Q.1 Stock return of Karnawati Innovation Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 25.3% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	25.3%	78.3%	2.2%	23.7%

Q.2 Valuation ratios of Karnawati Innovation Ltd vs historical?

The current P/E ratio of 2.33 is lower than its historical median of 62.88, 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	2.33	62.88	33.62
Price to Book	1.82	7.44	1.57
Price to Sales	0.1	2.55	2.21
EV to EBITDA	1.79	61.79	14.09

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Check Before You Invest : Karnawati Innovation Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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