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Check Before You Invest : Nanta Tech Ltd

BSE: 544668 NSE: ISIN: INE0YJA01011
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Nanta Tech Ltd belong to?
Nanta Tech Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Nanta Tech Ltd a good quality company?
Nanta Tech 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 Nanta Tech Ltd undervalued or overvalued?
Nanta Tech Ltd appears Somewhat overvalued, as its key valuation ratios are higher 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 0-year
Historic Median
Price to Earnings 44.12 30.64
Price to Book 13.39 2.58
Price to Sales 4.06 2.12
EV to EBITDA 32.15 18.06
Q.4 Is Nanta Tech Ltd a good buy now?
Nanta Tech 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.

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

Q.1 Debt to Equity ratio of Nanta Tech Ltd?
Nanta Tech Ltd Debt-to-Equity ratio is 0.04, which is above the industry average of , indicating higher debt levels in the industry.

Q.2 Debt to cash flow from operations of Nanta Tech Ltd?
Nanta Tech Ltd Debt to cash flow from operations is -0.27, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Nanta Tech Ltd?

Q.1 Promoter shareholding and pledge status of Nanta Tech Ltd?
Promoters hold 57.36% of the Nanta Tech Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Nanta Tech Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Nanta Tech Ltd vs industry peers?
Nanta Tech Ltd revenue CAGR is %, compared to the industry median CAGR of 13.55%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 0-year
Industry Median
Revenue Growth (%) - 13.6
Gross Profit Growth (%) 200 30.7
Operating Profit Growth (%) 200 36.8
Net Profit Growth (%) 150 44.2
Operating Efficiency
Current Level 0-year
Industry Median
Asset Turnover (x) 2.2 1.39
ROE (%) - 10.52
ROCE (%) - 16.8
Cash Conversion Cycle (days) 70.8 43

Valuation & price assessment

Q.1 Stock return of Nanta Tech Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Nanta Tech Ltd vs historical?
The current P/E ratio of 44.12 is higher than its historical median of 30.64, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 0-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings 44.12 30.64 -
Price to Book 13.39 2.58 -
Price to Sales 4.06 2.12 -
EV to EBITDA 32.15 18.06 -

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