Check Before You Invest : Onward Technologies Ltd

BSE: 517536 NSE: ONWARDTEC ISIN: INE229A01017

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

Snapshot

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

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

Q.2 Is Onward Technologies Ltd a good quality company?

Onward Technologies Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Onward Technologies Ltd undervalued or overvalued?

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

Q.4 Is Onward Technologies Ltd a good buy now?

Onward Technologies Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Onward Technologies Ltd?

Onward Technologies Ltd revenue growth is 10.2% for FY-2025, which is below its 5-year CAGR of 16.11%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Onward Technologies Ltd?

Onward Technologies Ltd Return on capital employed is 18.33% for FY-2025, which is in line with its 5-year historical median of 18.33%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Onward Technologies Ltd?

Onward Technologies Ltd Return on Asset is 8.62%, which is in line with its 5-year historical median of 8.62%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Onward Technologies Ltd?

Onward Technologies Ltd Return on equity is 12.91% for FY-2025, which is in line with its 5-year historical median of 12.91%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Onward Technologies Ltd?

Onward Technologies Ltd Cash conversion cycle is 54 days, in line with its 5-year historical median of 54 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.35	1.41
ROE	12.91	12.91
ROCE	18.33	18.33
Cash Conversion Cycle	54 days	54 days

Q.6 Gross Profit margin of Onward Technologies Ltd?

Onward Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.2% for FY-2025, which is in line with its 5-year median of 12.2%, indicating stable margins.

Q.7 Operating Profit Margin of Onward Technologies Ltd?

Onward Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.99% for FY-2025, which is in line with its 5-year median of 9.99% indicating stable margins.

Q.8 Net Profit Margin of Onward Technologies Ltd?

Onward Technologies Ltd Net Profit Margin is 6.4% for FY-2025, is in line with with its 5-year median of 6.4%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	12.2	12.2
Operating Profit Margin	9.99	9.99
Net Profit Margin	6.4	6.4

Q.9 Debt to Equity ratio of Onward Technologies Ltd?

Onward Technologies 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.10 Debt to cash flow from operations of Onward Technologies Ltd?

Onward Technologies 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 Onward Technologies Ltd?

Promoters hold 39.07% of the Onward Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Onward Technologies Ltd vs industry peers?

Onward Technologies Ltd revenue CAGR is 16.11%, compared to the industry median CAGR of 10.86%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	10.2	10.9
Gross Profit Growth	-6	18.3
Operating Profit Growth	-7.3	18.8
Net Profit Growth	-14.3	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.35	0.5
ROE	12.91	5.83
ROCE	18.33	6.79
Cash Conversion Cycle (days)	53.9	47

Valuation & price assessment

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

Over the last 9 year(s), the stock has delivered a CAGR of 13.8% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	13.8%	17.4%	-8%	1%

Q.3 Valuation ratios of Onward Technologies 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	18.87	41.50	47.37
Price to Book	2.75	4.37	2.63
Price to Sales	1.39	2.44	4.79
EV to EBITDA	8.4	18.28	16.48

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