Check Before You Invest : Netlink Solutions (India) Ltd

BSE: 509040 NSE: ISIN: INE040F01033

| Sector: IT & ITES | Industry: IT - Software

Snapshot

Q.1 Which industry/sub-sector does Netlink Solutions (India) Ltd belong to?

Netlink Solutions (India) Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Netlink Solutions (India) Ltd a good quality company?

Netlink Solutions (India) Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Netlink Solutions (India) Ltd undervalued or overvalued?

Netlink Solutions (India) Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Netlink Solutions (India) Ltd a good buy now?

Netlink Solutions (India) 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 Netlink Solutions (India) Ltd?

Netlink Solutions (India) Ltd revenue growth is -87.2% for FY-2025, which is below its 5-year CAGR of 4.56%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Netlink Solutions (India) Ltd?

Netlink Solutions (India) Ltd Return on capital employed is 24.96% for FY-2025, which is below its 5-year historical median of 27.37%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Netlink Solutions (India) Ltd?

Netlink Solutions (India) Ltd Return on Asset is 18.58%, which is below its 5-year historical median of 27.6%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Netlink Solutions (India) Ltd?

Netlink Solutions (India) Ltd Return on equity is 19.34% for FY-2025, which is below its 5-year historical median of 27.47%, indicating the business is making worse use of its shareholders capital.

Q.5 Gross Profit margin of Netlink Solutions (India) Ltd?

Netlink Solutions (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 2889.5% for FY-2025, which is above its 5-year median of 564.9%, indicating increasing margins.

Q.6 Operating Profit Margin of Netlink Solutions (India) Ltd?

Netlink Solutions (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -814.35% for FY-2025, which is below its 5-year median of -113.08% indicating decreasing margins.

Q.7 Net Profit Margin of Netlink Solutions (India) Ltd?

Netlink Solutions (India) Ltd Net Profit Margin is 2176.1% for FY-2025, is above with its 5-year median of 468.36%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	2889.5	564.9
Operating Profit Margin	-814.35	-113.08
Net Profit Margin	2176.1	468.36

Q.8 Debt to Equity ratio of Netlink Solutions (India) Ltd?

Netlink Solutions (India) Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.11, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of Netlink Solutions (India) Ltd?

Netlink Solutions (India) Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Netlink Solutions (India) Ltd?

Promoters hold 66.58% of the Netlink Solutions (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Netlink Solutions (India) Ltd vs industry peers?

Netlink Solutions (India) Ltd revenue CAGR is 4.56%, compared to the industry median CAGR of 10.86%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-87.2	10.9
Gross Profit Growth	-35.9	19
Operating Profit Growth	-472.2	NAN
Net Profit Growth	-41.9	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.01	0.5
ROE	19.34	5.83
ROCE	24.96	6.79
Cash Conversion Cycle (days)	6.38	47

Valuation & price assessment

Q.1 Stock return of Netlink Solutions (India) Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 37.7% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	37.7%	65.9%	52.3%	35.5%

Q.3 Valuation ratios of Netlink Solutions (India) 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	526	4.78	47.37
Price to Book	1.64	1.31	2.63
Price to Sales	1041.69	21.36	4.79
EV to EBITDA	-103.3	3.35	16.48

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