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Check Before You Invest : Prime Urban Development India Ltd

BSE: 521149 NSE: ISIN: INE419E01024
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Prime Urban Development India Ltd belong to?
Prime Urban Development India Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Prime Urban Development India Ltd a good quality company?
Prime Urban Development India 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 Prime Urban Development India Ltd undervalued or overvalued?
Prime Urban Development India Ltd appears 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 5-year
Historic Median
Price to Earnings 11.07 -
Price to Book -43.02 -10.31
Price to Sales 7.19 5.99
EV to EBITDA 9.95 -32.21
Q.4 Is Prime Urban Development India Ltd a good buy now?
Prime Urban Development 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

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 Prime Urban Development India Ltd?
Prime Urban Development India Ltd revenue growth is -8% for FY-2025, which is above its 5-year CAGR of -42.19%, indicating faster growth.

Q.2 Gross Profit margin of Prime Urban Development India Ltd?
Prime Urban Development India Ltd Gross profit margin which is the profit after deduction of direct costs, is 56.9% for FY-2025, which is above its 5-year median of -25.4%, indicating increasing margins.

Q.3 Operating Profit Margin of Prime Urban Development India Ltd?
Prime Urban Development India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.78% for FY-2025, which is above its 5-year median of -22.18% indicating increasing margins.

Q.4 Net Profit Margin of Prime Urban Development India Ltd?
Prime Urban Development India Ltd Net Profit Margin is 38.37% for FY-2025, is above its 5-year median of -19.64%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 56.9 -25.4
Operating Profit Margin (%) 2.78 -22.18
Net Profit Margin (%) 38.37 -19.64

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Prime Urban Development India Ltd?
Prime Urban Development India Ltd Return on Asset is 2.19%, which is above its 5-year historical median of -1.84%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Prime Urban Development India Ltd?
Prime Urban Development India Ltd Return on capital employed is 30.76% for FY-2025, which is above its 5-year historical median of -1.62%. 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 Prime Urban Development India Ltd?
Prime Urban Development India Ltd Return on equity is 0% for FY-2025, which is above its 5-year historical median of -70.33%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Prime Urban Development India Ltd?
Prime Urban Development India Ltd Cash conversion cycle is 98 days, in line with its 5-year historical median of 98 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 (x) 0.06 0.06
ROE (%) - -70.33
ROCE (%) 30.76 -1.62
Cash Conversion Cycle 98 days 98 days

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

Q.9 Debt to Equity ratio of Prime Urban Development India Ltd?
Prime Urban Development India Ltd Debt-to-Equity ratio is -10.83, which is lower the industry average of 0.42, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Prime Urban Development India Ltd?
Prime Urban Development India Ltd Debt to cash flow from operations is -6.5, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Prime Urban Development India Ltd?

Q.1 Promoter shareholding and pledge status of Prime Urban Development India Ltd?
Promoters hold 72.08% of the Prime Urban Development India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Prime Urban Development India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Prime Urban Development India Ltd vs industry peers?
Prime Urban Development India Ltd revenue CAGR is -42.19%, compared to the industry median CAGR of 0.00%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -8 0
Gross Profit Growth (%) 0 9.1
Operating Profit Growth (%) 0 8.5
Net Profit Growth (%) 0 13
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.06 0.95
ROE (%) - 4.25
ROCE (%) 30.76 7.55
Cash Conversion Cycle (days) 97.67 102

Valuation & price assessment

Q.1 Stock return of Prime Urban Development India Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -7.6% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-7.6% 2.7% 11.6% -4.5%
Q.2 Valuation ratios of Prime Urban Development India Ltd vs historical?
The current P/E ratio of 11.07 is higher than its historical median of , indicating that the stock is trading above 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 11.07 - 20.16
Price to Book -43.02 -10.31 1.32
Price to Sales 7.19 5.99 1.06
EV to EBITDA 9.95 -32.21 9.31

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