MoneyWorks4Me

Check Before You Invest : Tejas Cargo India Ltd

BSE: 0 NSE: TEJASCARGO ISIN: INE17WC01013
  |   Sector:  Transportation & Logistics   |   Industry:  Logistics

Snapshot

Q.1 Which industry/sub-sector does Tejas Cargo India Ltd belong to?
Tejas Cargo India Ltd belongs to the Transportation & Logistics sector, operating specifically within the Logistics segment.
Q.2 Is Tejas Cargo India Ltd a good quality company?
Tejas Cargo India Ltd is a weak quality company, based on a inconsistent 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 Tejas Cargo India Ltd undervalued or overvalued?
Tejas Cargo 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 0-year
Historic Median
Price to Earnings 46.35 11.66
Price to Book 5.6 3.49
Price to Sales 1.54 3.12
EV to EBITDA 9.28 7.41
Q.4 Is Tejas Cargo India Ltd a good buy now?
Tejas Cargo India 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

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.

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

Q.1 Debt to Equity ratio of Tejas Cargo India Ltd?
Tejas Cargo India Ltd Debt-to-Equity ratio is 0.92, which is above the industry average of , indicating higher debt levels in the industry.

Q.2 Debt to cash flow from operations of Tejas Cargo India Ltd?
Tejas Cargo India Ltd Debt to cash flow from operations is 2.51, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Tejas Cargo India Ltd?

Q.1 Promoter shareholding and pledge status of Tejas Cargo India Ltd?
Promoters hold 74.71% of the Tejas Cargo India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Tejas Cargo India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Tejas Cargo India Ltd vs industry peers?
Tejas Cargo India Ltd revenue CAGR is %, compared to the industry median CAGR of 0%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 0-year
Industry Median
Revenue Growth (%) - -
Gross Profit Growth (%) 50 20.2
Operating Profit Growth (%) 47 16
Net Profit Growth (%) 46.2 20.2
Operating Efficiency
Current Level 0-year
Industry Median
Asset Turnover (x) 1.69 0.58
ROE (%) - 6.06
ROCE (%) - 8.68
Cash Conversion Cycle (days) 56.23 36

Valuation & price assessment

Q.1 Stock return of Tejas Cargo India Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 33.11% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - 33.1%
Q.2 Valuation ratios of Tejas Cargo India Ltd vs historical?
The current P/E ratio of 46.35 is higher than its historical median of 11.66, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 0-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings 46.35 11.66 -
Price to Book 5.6 3.49 -
Price to Sales 1.54 3.12 -
EV to EBITDA 9.28 7.41 -

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