Check Before You Invest : Nettlinx Ltd

Q: Which industry/sub-sector does Nettlinx Ltd belong to?

Nettlinx Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q: Is Nettlinx Ltd a good quality company?

Nettlinx Ltd is a quality company, based on a 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: Is Nettlinx Ltd undervalued or overvalued?

Nettlinx 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. Price to Earnings, Current: -, Historic Median: 34.34. Price to Book, Current: 0.86, Historic Median: 2.85. Price to Sales, Current: 2.7, Historic Median: 10.18. EV to EBITDA, Current: 13.77, Historic Median: 32.89

Q: Is Nettlinx Ltd a good buy now?

Nettlinx 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

Q: Revenue growth of Nettlinx Ltd?

Nettlinx Ltd revenue growth is 13.7% for FY-2025, which is above its 5-year CAGR of -3.39%, indicating faster growth.

Q: Gross Profit margin of Nettlinx Ltd?

Nettlinx Ltd Gross profit margin which is the profit after deduction of direct costs, is 39.7% for FY-2025, which is above its 5-year median of 27.5%, indicating increasing margins.

Q: Operating Profit Margin of Nettlinx Ltd?

Nettlinx Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 44.89% for FY-2025, which is above its 5-year median of 36.77% indicating increasing margins.

Q: Net Profit Margin of Nettlinx Ltd?

Nettlinx Ltd Net Profit Margin is 25.02% for FY-2025, is above its 5-year median of 13.43%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 39.7, Historic Median: 27.5. Operating Profit Margin (%), Current: 44.89, Historic Median: 36.77. Net Profit Margin (%), Current: 25.02, Historic Median: 13.43

Q: Return on Asset of Nettlinx Ltd?

Nettlinx Ltd Return on Asset is 8.5%, which is above its 5-year historical median of 2.78%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Nettlinx Ltd?

Nettlinx Ltd Return on capital employed is 14.73% for FY-2025, which is above its 5-year historical median of 6.17%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Nettlinx Ltd

BSE: 511658 NSE: ISIN: INE027D01019

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

Snapshot

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

Nettlinx Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Nettlinx Ltd a good quality company?

Nettlinx Ltd is a quality company, based on a 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 Nettlinx Ltd undervalued or overvalued?

Nettlinx 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	-	34.34
Price to Book	0.86	2.85
Price to Sales	2.7	10.18
EV to EBITDA	13.77	32.89

Q.4 Is Nettlinx Ltd a good buy now?

Nettlinx 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.

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

Q.1 Revenue growth of Nettlinx Ltd?

Nettlinx Ltd revenue growth is 13.7% for FY-2025, which is above its 5-year CAGR of -3.39%, indicating faster growth.

Q.2 Gross Profit margin of Nettlinx Ltd?

Nettlinx Ltd Gross profit margin which is the profit after deduction of direct costs, is 39.7% for FY-2025, which is above its 5-year median of 27.5%, indicating increasing margins.

Q.3 Operating Profit Margin of Nettlinx Ltd?

Nettlinx Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 44.89% for FY-2025, which is above its 5-year median of 36.77% indicating increasing margins.

Q.4 Net Profit Margin of Nettlinx Ltd?

Nettlinx Ltd Net Profit Margin is 25.02% for FY-2025, is above its 5-year median of 13.43%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	39.7	27.5
Operating Profit Margin (%)	44.89	36.77
Net Profit Margin (%)	25.02	13.43

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Nettlinx Ltd?

Nettlinx Ltd Return on Asset is 8.5%, which is above its 5-year historical median of 2.78%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Nettlinx Ltd?

Nettlinx Ltd Return on capital employed is 14.73% for FY-2025, which is above its 5-year historical median of 6.17%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Nettlinx Ltd?

Nettlinx Ltd Return on equity is 11.37% for FY-2025, which is above its 5-year historical median of 3.78%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Nettlinx Ltd?

Nettlinx Ltd Cash conversion cycle is 247 days, above its 5-year historical median of 34 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 (x)	0.34	0.21
ROE (%)	11.37	3.78
ROCE (%)	14.73	6.17
Cash Conversion Cycle	247 days	34 days

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

Q.9 Debt to Equity ratio of Nettlinx Ltd?

Nettlinx Ltd Debt-to-Equity ratio is 0.30, which is above the industry average of 0.01, indicating higher debt levels in the industry.

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

Nettlinx Ltd Debt to cash flow from operations is -10.51, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Nettlinx Ltd?

Q.1 Promoter shareholding and pledge status of Nettlinx Ltd?

Promoters hold 50.41% of the Nettlinx Ltd, with 2.26% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Nettlinx Ltd vs industry peers?

Nettlinx Ltd revenue CAGR is -3.39%, compared to the industry median CAGR of 2.48%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	13.7	2.5
Gross Profit Growth (%)	-7	18.3
Operating Profit Growth (%)	-4.4	18
Net Profit Growth (%)	-10.4	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.34	0.46
ROE (%)	11.37	3.97
ROCE (%)	14.73	6.41
Cash Conversion Cycle (days)	247.4	36

Valuation & price assessment

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

Over the last 9 year(s), the stock has delivered a CAGR of -5.6% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-5.6%	-10.7%	-43.8%	-48%

Q.2 Valuation ratios of Nettlinx Ltd vs historical?

The current P/E ratio of 0 is lower than its historical median of 34.34, 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	-	34.34	47.38
Price to Book	0.86	2.85	2.64
Price to Sales	2.7	10.18	4.79
EV to EBITDA	13.77	32.89	16.75

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Check Before You Invest : Nettlinx Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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