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Check Before You Invest : Shradha AI Technologies Ltd

BSE: 543976 NSE: ISIN: INE489B01031
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Shradha AI Technologies Ltd belong to?
Shradha AI Technologies Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Shradha AI Technologies Ltd a good quality company?
Shradha AI Technologies Ltd is a average quality company, based on a somewhat consistent 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 Shradha AI Technologies Ltd undervalued or overvalued?
Shradha AI Technologies 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 5-year
Historic Median
Price to Earnings 18.54 26.51
Price to Book 2.3 2.76
Price to Sales 10.99 14.86
EV to EBITDA 12.65 18.59
Q.4 Is Shradha AI Technologies Ltd a good buy now?
Shradha AI Technologies 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.

Q.1 Gross Profit margin of Shradha AI Technologies Ltd?
Shradha AI Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 86.8% for FY-2025, which is above its 5-year median of 50.3%, indicating increasing margins.

Q.2 Operating Profit Margin of Shradha AI Technologies Ltd?
Shradha AI Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 67.78% for FY-2025, which is above its 5-year median of 41.84% indicating increasing margins.

Q.3 Net Profit Margin of Shradha AI Technologies Ltd?
Shradha AI Technologies Ltd Net Profit Margin is 65.59% for FY-2025, is above its 5-year median of 37%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 86.8 50.3
Operating Profit Margin (%) 67.78 41.84
Net Profit Margin (%) 65.59 37

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Shradha AI Technologies Ltd?
Shradha AI Technologies Ltd Return on Asset is 12.37%, which is in line with its 5-year historical median of 12.33%, indicating stable asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Shradha AI Technologies Ltd?
Shradha AI Technologies Ltd Return on capital employed is 17.85% for FY-2025, which is in line with its 5-year historical median of 17.82%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Shradha AI Technologies Ltd?
Shradha AI Technologies Ltd Return on equity is 13.57% for FY-2025, which is in line with its 5-year historical median of 13.14%, indicating the business is making similar use of its shareholders capital.

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

Q.7 Debt to Equity ratio of Shradha AI Technologies Ltd?
Shradha AI Technologies Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.03, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Shradha AI Technologies Ltd?
Shradha AI Technologies Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Shradha AI Technologies Ltd?

Q.1 Promoter shareholding and pledge status of Shradha AI Technologies Ltd?
Promoters hold 74.66% of the Shradha AI Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Shradha AI Technologies Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Shradha AI Technologies Ltd vs industry peers?
Shradha AI Technologies Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 0%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - -
Gross Profit Growth (%) 44.4 17.9
Operating Profit Growth (%) 42.9 16.4
Net Profit Growth (%) 66.7 17.3
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.19 0.52
ROE (%) 13.57 2.05
ROCE (%) 17.85 3.6
Cash Conversion Cycle (days) 39.37 46

Valuation & price assessment

Q.1 Stock return of Shradha AI Technologies Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -21.09% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -21.1%
Q.2 Valuation ratios of Shradha AI Technologies Ltd vs historical?
The current P/E ratio of 18.54 is lower than its historical median of 26.51, 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 18.54 26.51 33.62
Price to Book 2.3 2.76 1.57
Price to Sales 10.99 14.86 2.21
EV to EBITDA 12.65 18.59 14.09

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