Check Before You Invest : Megatherm Induction Ltd

Snapshot

Q.1 Which industry/sub-sector does Megatherm Induction Ltd belong to?

Megatherm Induction Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q.2 Is Megatherm Induction Ltd a good quality company?

Megatherm Induction Ltd is a average quality company, based on a somewhat consistent 5-year financial track record.

Q.3 Is Megatherm Induction Ltd undervalued or overvalued?

Megatherm Induction Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Megatherm Induction Ltd a good buy now?

Megatherm Induction Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Return on capital employed (ROCE) of Megatherm Induction Ltd?

Megatherm Induction Ltd Return on capital employed is 21.13% for FY-2025, which is in line with its 5-year historical median of 21.13%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.2 Return on Asset of Megatherm Induction Ltd?

Megatherm Induction Ltd Return on Asset is 7.34%, which is in line with its 5-year historical median of 7.34%, indicating stable asset utilization efficiency.

Q.3 Return on Equity (ROE) of Megatherm Induction Ltd?

Megatherm Induction Ltd Return on equity is 16.26% for FY-2025, which is in line with its 5-year historical median of 16.26%, indicating the business is making similar use of its shareholders capital.

Q.4 Gross Profit margin of Megatherm Induction Ltd?

Megatherm Induction Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.3% for FY-2025, which is above its 5-year median of 8.4%, indicating increasing margins.

Q.5 Operating Profit Margin of Megatherm Induction Ltd?

Megatherm Induction Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.14% for FY-2025, which is in line with its 5-year median of 11.14% indicating stable margins.

Q.6 Net Profit Margin of Megatherm Induction Ltd?

Megatherm Induction Ltd Net Profit Margin is 6.65% for FY-2025, is above with its 5-year median of 5.27%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	10.3	8.4
Operating Profit Margin	11.14	11.14
Net Profit Margin	6.65	5.27

Q.7 Debt to Equity ratio of Megatherm Induction Ltd?

Megatherm Induction Ltd Debt-to-Equity ratio is 0.23, which is lower with the industry average of 0.34, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Megatherm Induction Ltd?

Megatherm Induction Ltd Debt to cash flow from operations is 2.02, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Megatherm Induction Ltd?

Promoters hold 71.85% of the Megatherm Induction Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Megatherm Induction Ltd vs industry peers?

Megatherm Induction Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 12.01%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-	12
Gross Profit Growth	6.5	NAN
Operating Profit Growth	-	NAN
Net Profit Growth	-	26.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.1	0.91
ROE	16.26	12.81
ROCE	21.13	15.04
Cash Conversion Cycle (days)	83.62	107

Valuation & price assessment

Q.1 Stock return of Megatherm Induction Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -4.3% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-4.3%

Q.3 Valuation ratios of Megatherm Induction Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	24.03	29.37	29.52
Price to Book	3.61	4.70	2.90
Price to Sales	1.6	1.92	2.94
EV to EBITDA	12.7	15.66	15.76

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