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Check Before You Invest : CE Info Systems Ltd

BSE: 543425 NSE: MAPMYINDIA ISIN: INE0BV301023
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does CE Info Systems Ltd belong to?
CE Info Systems Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is CE Info Systems Ltd a good quality company?
CE Info Systems Ltd is a good quality company, based on a consistently good 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 CE Info Systems Ltd undervalued or overvalued?
CE Info Systems 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 35.58 73.80
Price to Book 5.27 12.66
Price to Sales 12.24 30.83
EV to EBITDA 23.03 52.17
Q.4 Is CE Info Systems Ltd a good buy now?
CE Info Systems 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.

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

Q.1 Revenue growth of CE Info Systems Ltd?
CE Info Systems Ltd revenue growth is 21.6% for FY-2025, which is in line with its 5-year CAGR of 20.9%, indicating stable growth.

Q.2 Gross Profit margin of CE Info Systems Ltd?
CE Info Systems Ltd Gross profit margin which is the profit after deduction of direct costs, is 56.4% for FY-2025, which is in line with its 5-year median of 58.8%, indicating stable margins.

Q.3 Operating Profit Margin of CE Info Systems Ltd?
CE Info Systems Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 43.17% for FY-2025, which is in line with its 5-year median of 43.93% indicating stable margins.

Q.4 Net Profit Margin of CE Info Systems Ltd?
CE Info Systems Ltd Net Profit Margin is 39.08% for FY-2025, is below its 5-year median of 42.84%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 56.4 58.8
Operating Profit Margin (%) 43.17 43.93
Net Profit Margin (%) 39.08 42.84

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of CE Info Systems Ltd?
CE Info Systems Ltd Return on Asset is 17.58%, which is below its 5-year historical median of 18.52%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of CE Info Systems Ltd?
CE Info Systems Ltd Return on capital employed is 28.64% for FY-2025, which is in line with its 5-year historical median of 29.39%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of CE Info Systems Ltd?
CE Info Systems Ltd Return on equity is 21.19% for FY-2025, which is below its 5-year historical median of 23.73%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of CE Info Systems Ltd?
CE Info Systems Ltd Cash conversion cycle is 48 days, in line with its 5-year historical median of 48 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) 0.45 0.43
ROE (%) 21.19 23.73
ROCE (%) 28.64 29.39
Cash Conversion Cycle 48 days 48 days

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

Q.9 Debt to Equity ratio of CE Info Systems Ltd?
CE Info Systems Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.01, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of CE Info Systems Ltd?
CE Info Systems Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of CE Info Systems Ltd?

Q.1 Promoter shareholding and pledge status of CE Info Systems Ltd?
Promoters hold 51.41% of the CE Info Systems Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does CE Info Systems Ltd performance compare with that of its Peers?

Q.1 Revenue growth of CE Info Systems Ltd vs industry peers?
CE Info Systems Ltd revenue CAGR is 20.90%, compared to the industry median CAGR of 2.48%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 21.6 2.5
Gross Profit Growth (%) 16.7 18.3
Operating Profit Growth (%) 13 18
Net Profit Growth (%) 9.5 22
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.45 0.46
ROE (%) 21.19 3.97
ROCE (%) 28.64 6.41
Cash Conversion Cycle (days) 48.4 36

Valuation & price assessment

Q.1 Stock return of CE Info Systems Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of -6.68% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - -6.7% -56.5%
Q.2 Valuation ratios of CE Info Systems Ltd vs historical?
The current P/E ratio of 35.58 is lower than its historical median of 73.80, 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 35.58 73.80 47.38
Price to Book 5.27 12.66 2.64
Price to Sales 12.24 30.83 4.79
EV to EBITDA 23.03 52.17 16.75

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