Encompass Design India (NSE:ENCOMPAS) Beneish M-Score: -1.27 (As of Jul. 02, 2026)


NSE:ENCOMPAS Encompass Design India Ltd NSE:ENCOMPAS
20 GF Score
Price ₹239.90
! 4 Warning Signs
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What is Encompass Design India Beneish M-Score?

Encompass Design India NSE:ENCOMPAS +0.33% 20 Beneish M-Score is -1.27 as of Jul. 02, 2026. GuruFocus rates NSE:ENCOMPAS with a GF Score™ of 20/100. The stock has 4 warning signs investors should review. Among 1,084 Retail - Cyclical companies, Encompass Design India ranks worse than 88.38% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score -1.27 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Encompass Design India's Beneish M-Score or its related term are showing as below:

NSE:ENCOMPAS' s Beneish M-Score Range Over the Past 10 Years
Min: -1.27   Med: -1.27   Max: -1.27
Current: -1.27

During the past 3 years, the highest Beneish M-Score of Encompass Design India was -1.27. The lowest was -1.27. And the median was -1.27.

Encompass Design India Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Encompass Design India's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Encompass Design India Beneish M-Score Chart

Encompass Design India Annual Data
Trend Mar23 Mar24 Mar25
Beneish M-Score
0.00 0.00 -1.27

Encompass Design India Semi-Annual Data
Mar23 Mar24 Mar25 Sep25
Beneish M-Score 0.00 0.00 -1.27 0.00

NSE:ENCOMPAS vs HD, LOW, FND: Beneish M-Score Comparison

For the Home Improvement Retail subindustry, Encompass Design India's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Encompass Design India Beneish M-Score vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Encompass Design India's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Encompass Design India's Beneish M-Score falls into.


NSE:ENCOMPAS
20GF Score
Encompass Design India Ltd NSE:ENCOMPAS
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Encompass Design India Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Encompass Design India for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.3738+0.528 * 1.0379+0.404 * 0.7702+0.892 * 1.3648+0.115 * 0.8995
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9571+4.679 * 0.113308-0.327 * 0.7215
=-1.27

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar25) TTM:Last Year (Mar24) TTM:
Total Receivables was ₹89.4 Mil.
Revenue was ₹546.5 Mil.
Gross Profit was ₹281.2 Mil.
Total Current Assets was ₹345.4 Mil.
Total Assets was ₹534.5 Mil.
Property, Plant and Equipment(Net PPE) was ₹15.3 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹22.8 Mil.
Selling, General, & Admin. Expense(SGA) was ₹22.2 Mil.
Total Current Liabilities was ₹165.3 Mil.
Long-Term Debt & Capital Lease Obligation was ₹30.9 Mil.
Net Income was ₹107.9 Mil.
Gross Profit was ₹0.0 Mil.
Cash Flow from Operations was ₹47.4 Mil.
 Total Receivables was ₹47.7 Mil.
Revenue was ₹400.4 Mil.
Gross Profit was ₹213.8 Mil.
Total Current Assets was ₹119.2 Mil.
Total Assets was ₹231.9 Mil.
Property, Plant and Equipment(Net PPE) was ₹14.8 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹17.3 Mil.
Selling, General, & Admin. Expense(SGA) was ₹17.0 Mil.
Total Current Liabilities was ₹58.6 Mil.
Long-Term Debt & Capital Lease Obligation was ₹59.3 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(89.425 / 546.494) / (47.694 / 400.418)
=0.163634 / 0.119111
=1.3738

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(213.835 / 400.418) / (281.199 / 546.494)
=0.534029 / 0.514551
=1.0379

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (345.398 + 15.252) / 534.455) / (1 - (119.207 + 14.785) / 231.91)
=0.3252 / 0.422224
=0.7702

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=546.494 / 400.418
=1.3648

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(17.268 / (17.268 + 14.785)) / (22.773 / (22.773 + 15.252))
=0.538733 / 0.598895
=0.8995

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(22.153 / 546.494) / (16.96 / 400.418)
=0.040537 / 0.042356
=0.9571

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((30.869 + 165.252) / 534.455) / ((59.326 + 58.628) / 231.91)
=0.366955 / 0.50862
=0.7215

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(107.938 - 0 - 47.38) / 534.455
=0.113308

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Encompass Design India has a M-score of -1.27 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -1.27 mean?
Encompass Design India (NSE:ENCOMPAS) has a Beneish M-Score of -1.27 as of Jul. 02, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Encompass Design India and its competitors. According to the industry distribution chart, Encompass Design India ranks #958 out of 1084 companies in the Retail - Cyclical industry, placing it in the top 88.4%.
Is Encompass Design India's Beneish M-Score too high?
Encompass Design India's current Beneish M-Score is -1.27. Based on the distribution chart, Encompass Design India ranks #958 out of 1084 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Encompass Design India has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Encompass Design India's Beneish M-Score compare to HD and LOW?
According to the Retail - Cyclical industry distribution chart, Encompass Design India ranks #958 out of 1084 companies for Beneish M-Score. This places Encompass Design India in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Retail - Cyclical company?
A good Beneish M-Score depends on the Retail - Cyclical industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Encompass Design India and its competitors. Encompass Design India's current Beneish M-Score is -1.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Encompass Design India stock overvalued right now?
Encompass Design India (NSE:ENCOMPAS) has a current Beneish M-Score of -1.27. The current Beneish M-Score is -1.27. Encompass Design India's overall GF Score™ is 20/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Encompass Design India (NSE:ENCOMPAS), the current Beneish M-Score is -1.27 as of Jul. 02, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Encompass Design India Business Description

Address Shop No. A-101, Opposite Western Express Highway, Virwani Indl Estate, Goregaon East, Mumbai, MH, IND, 400063
Encompass Design India Ltd is principally engaged in the manufacturing of home and lifestyle products, such as bed sheets, curtains, comforters, table linens, and pillow covers, as well as food products, with a primary focus on sauces, marketed under its own brands. The company is also involved in the trading of agro-based products, cotton, and fabrics. The company's business operations are spread across multiple segments, including manufacturing of home and lifestyle products, development and marketing of food products, trading of fabrics, cotton and agro-based products, and (iv) providing digital and e-commerce support services. The company derives revenue from the manufacturing and export of its Textile and Sauces Food brands.
20GF Score

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Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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