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Check Before You Invest : Kody Technolab Ltd

BSE: 0 NSE: KODYTECH ISIN: INE0Q7P01013
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does Kody Technolab Ltd belong to?
Kody Technolab Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is Kody Technolab Ltd a good quality company?
Kody Technolab 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 Kody Technolab Ltd undervalued or overvalued?
Kody Technolab Ltd appears Somewhat 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 47.97 154.29
Price to Book 6.26 19.37
Price to Sales 12.48 39.05
EV to EBITDA 31.12 104.78
Q.4 Is Kody Technolab Ltd a good buy now?
Kody Technolab Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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.

Q.1 Gross Profit margin of Kody Technolab Ltd?
Kody Technolab Ltd Gross profit margin which is the profit after deduction of direct costs, is 35.4% for FY-2025, which is above its 5-year median of 30.7%, indicating increasing margins.

Q.2 Operating Profit Margin of Kody Technolab Ltd?
Kody Technolab Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 35.1% for FY-2025, which is above its 5-year median of 30.16% indicating increasing margins.

Q.3 Net Profit Margin of Kody Technolab Ltd?
Kody Technolab Ltd Net Profit Margin is 24.55% for FY-2025, is above its 5-year median of 21.77%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 35.4 30.7
Operating Profit Margin (%) 35.1 30.16
Net Profit Margin (%) 24.55 21.77

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Kody Technolab Ltd?
Kody Technolab Ltd Return on Asset is 22.87%, which is in line with its 5-year historical median of 22.87%, indicating stable asset utilization efficiency.

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

Q.5 Debt to Equity ratio of Kody Technolab Ltd?
Kody Technolab Ltd Debt-to-Equity ratio is 0.24, which is above the industry average of 0.01, indicating higher debt levels in the industry.

Q.6 Debt to cash flow from operations of Kody Technolab Ltd?
Kody Technolab Ltd Debt to cash flow from operations is -1.73, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Kody Technolab Ltd?

Q.1 Promoter shareholding and pledge status of Kody Technolab Ltd?
Promoters hold 72.73% of the Kody Technolab Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Kody Technolab Ltd vs industry peers?
Kody Technolab Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 3.17%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - 3.2
Gross Profit Growth (%) 257.1 18.4
Operating Profit Growth (%) 257.1 18.8
Net Profit Growth (%) 260 21.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.93 0.46
ROE (%) - 4.22
ROCE (%) - 6.49
Cash Conversion Cycle (days) 103.24 36

Valuation & price assessment

Q.1 Stock return of Kody Technolab Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -9.23% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -9.2%
Q.2 Valuation ratios of Kody Technolab Ltd vs historical?
The current P/E ratio of 47.97 is lower than its historical median of 154.29, 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 47.97 154.29 47.38
Price to Book 6.26 19.37 2.64
Price to Sales 12.48 39.05 4.79
EV to EBITDA 31.12 104.78 16.75

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