Check Before You Invest : Misquita Engineering Ltd

Snapshot

Q.1 Which industry/sub-sector does Misquita Engineering Ltd belong to?

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

Q.2 Is Misquita Engineering Ltd a good quality company?

Misquita Engineering Ltd is a quality company, based on a 9-year financial track record.

Q.3 Is Misquita Engineering Ltd undervalued or overvalued?

Misquita Engineering Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Misquita Engineering Ltd a good buy now?

Misquita Engineering 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

Q.1 Revenue growth of Misquita Engineering Ltd?

Misquita Engineering Ltd revenue growth is 19.1% for FY-2025, which is above its 5-year CAGR of 12.99%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Misquita Engineering Ltd?

Misquita Engineering Ltd Return on capital employed is 1.66% for FY-2025, which is below its 5-year historical median of 7.06%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Misquita Engineering Ltd?

Misquita Engineering Ltd Return on Asset is 1.39%, which is below its 5-year historical median of 2.97%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Misquita Engineering Ltd?

Misquita Engineering Ltd Return on equity is 1.88% for FY-2025, which is below its 5-year historical median of 4.28%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Misquita Engineering Ltd?

Misquita Engineering Ltd Cash conversion cycle is 215 days, above its 5-year historical median of 129 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	0.84	0.89
ROE	1.88	4.28
ROCE	1.66	7.06
Cash Conversion Cycle	215 days	129 days

Q.6 Gross Profit margin of Misquita Engineering Ltd?

Misquita Engineering Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.6% for FY-2025, which is below its 5-year median of 6.5%, indicating decreasing margins.

Q.7 Operating Profit Margin of Misquita Engineering Ltd?

Misquita Engineering Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.65% for FY-2025, which is below its 5-year median of 4.96% indicating decreasing margins.

Q.8 Net Profit Margin of Misquita Engineering Ltd?

Misquita Engineering Ltd Net Profit Margin is 1.65% for FY-2025, is below with its 5-year median of 3.42%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	2.6	6.5
Operating Profit Margin	2.65	4.96
Net Profit Margin	1.65	3.42

Q.9 Debt to Equity ratio of Misquita Engineering Ltd?

Misquita Engineering Ltd Debt-to-Equity ratio is 0.12, which is lower with the industry average of 0.34, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Misquita Engineering Ltd?

Misquita Engineering Ltd Debt to cash flow from operations is -0.45, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Misquita Engineering Ltd?

Promoters hold 69.37% of the Misquita Engineering Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Misquita Engineering Ltd vs industry peers?

Misquita Engineering Ltd revenue CAGR is 12.99%, compared to the industry median CAGR of 12.01%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	19.1	12
Gross Profit Growth	0	NAN
Operating Profit Growth	0	NAN
Net Profit Growth	0	26.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.84	0.91
ROE	1.88	12.81
ROCE	1.66	15.04
Cash Conversion Cycle (days)	215.43	107

Valuation & price assessment

Q.1 Stock return of Misquita Engineering Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 34.62% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	34.6%	32.6%	23%

Q.3 Valuation ratios of Misquita Engineering Ltd vs historical?

The current P/E is higher 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	253.21	32.29	29.52
Price to Book	3.53	2.44	2.90
Price to Sales	4.18	1.65	2.94
EV to EBITDA	147.05	15.58	15.76

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