MoneyWorks4Me

Check Before You Invest : Rentomojo Ltd

BSE: 544915 NSE: RENTOMOJO ISIN: INE08T701025
  |   Sector:  Retail   |   Industry:  e-Commerce

Snapshot

Q.1 Which industry/sub-sector does Rentomojo Ltd belong to?
Rentomojo Ltd belongs to the Retail sector, operating specifically within the e-Commerce segment.
Q.2 Is Rentomojo Ltd a good quality company?
Rentomojo 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 Rentomojo Ltd undervalued or overvalued?
Rentomojo Ltd appears Fair, as its key valuation ratios are in line with 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 3-year
Historic Median
Price to Earnings 51.22 -
Price to Book 12.14 -
Price to Sales 13.8 -
EV to EBITDA 33.11 -
Q.4 Is Rentomojo Ltd a good buy now?
Rentomojo 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 Rentomojo Ltd?
Rentomojo Ltd revenue growth is 45.5% for FY-2026, which is in line with its 3-year CAGR of 47.7%, indicating stable growth.

Q.2 Gross Profit margin of Rentomojo Ltd?
Rentomojo Ltd Gross profit margin which is the profit after deduction of direct costs, is 35.8% for FY-2026, which is above its 3-year median of 34%, indicating increasing margins.

Q.3 Operating Profit Margin of Rentomojo Ltd?
Rentomojo Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 42.06% for FY-2026, which is in line with its 3-year median of 42.06% indicating stable margins.

Q.4 Net Profit Margin of Rentomojo Ltd?
Rentomojo Ltd Net Profit Margin is 26.95% for FY-2026, is above its 3-year median of 16.21%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 35.8 34
Operating Profit Margin (%) 42.06 42.06
Net Profit Margin (%) 26.95 16.21

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Rentomojo Ltd?
Rentomojo Ltd Return on Asset is 19.78%, which is above its 3-year historical median of 10.56%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Rentomojo Ltd?
Rentomojo Ltd Return on capital employed is 22.64% for FY-2026, which is in line with its 3-year historical median of 22.64%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Rentomojo Ltd?
Rentomojo Ltd Return on equity is 45.79% for FY-2026, which is above its 3-year historical median of 32.38%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Rentomojo Ltd?
Rentomojo Ltd Cash conversion cycle is -7 days, below its 3-year historical median of -4 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 0.75 0.72
ROE (%) 45.79 32.38
ROCE (%) 22.64 22.64
Cash Conversion Cycle -7 days -4 days

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

Q.9 Debt to Equity ratio of Rentomojo Ltd?
Rentomojo Ltd Debt-to-Equity ratio is 0.66, which is above the industry average of 0.11, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Rentomojo Ltd?
Rentomojo Ltd Debt to cash flow from operations is 1.09, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Rentomojo Ltd?

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

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Rentomojo Ltd vs industry peers?
Rentomojo Ltd revenue CAGR is 47.70%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 45.5 0
Gross Profit Growth (%) 53.3 46.3
Operating Profit Growth (%) 42 54.2
Net Profit Growth (%) 141.9 18.2
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 0.75 0.74
ROE (%) 45.79 21.1
ROCE (%) 22.64 20.76
Cash Conversion Cycle (days) -7.23 22

Valuation & price assessment

Q.1 Stock return of Rentomojo 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 Rentomojo Ltd vs historical?
The current P/E ratio of 51.22 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 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 51.22 - 30.33
Price to Book 12.14 - 5.00
Price to Sales 13.8 - 7.96
EV to EBITDA 33.11 - 18.54

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