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Last Updated on: 17 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Cadsys (India) Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 9:04 pm

Market Cap 105 Cr.
Current Price 140
High / Low511/118
Stock P/E
Book Value 72.0
Dividend Yield0.00 %
ROCE12.4 %
ROE15.6 %
Face Value 10.0
PEG Ratio0.00

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Cadsys (India) Ltd

Competitors of Cadsys (India) Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
eMudhra Ltd 7,354 Cr. 888993/41591.0 83.30.14 %17.7 %14.4 % 5.00
BNR Udyog Ltd 21.6 Cr. 71.9118/51.529.5 35.70.00 %63.6 %53.8 % 10.0
BGIL Films & Technologies Ltd 6.30 Cr. 5.5610.3/2.61 16.90.00 %4.44 %3.46 % 10.0
Aurum Proptech Ltd 644 Cr. 220250/125 97.40.00 %12.0 %27.1 % 5.00
Ace Engitech Ltd 15.2 Cr. 177177/11.9 5.010.00 %23.6 %25.2 % 10.0
Industry Average9,352.46 Cr754.5535.15198.730.43%18.81%17.48%7.47

All Competitor Stocks of Cadsys (India) Ltd

Quarterly Result

MonthMar 2019Sep 2019Mar 2020Sep 2020Mar 2021Sep 2021Mar 2022Sep 2022Mar 2023Sep 2023
Sales3023181219165173101108
Expenses22192015201853798494
Operating Profit85-2-2-1-2-2-51714
OPM %26%20%-10%-19%-4%-12%-3%-7%16%13%
Other Income1020304231
Interest0010101124
Depreciation2222212233
Profit before tax72-2-4-0-4-1-7158
Tax %7%-10%0%-11%-24%-7%-46%-7%-1%4%
Net Profit62-2-5-1-4-1-8157
EPS in Rs8.643.24-2.84-6.41-0.75-5.01-1.05-5.6911.946.36

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales14202430424552423167174209
Expenses10151622263134383470162179
Operating Profit35881614183-2-31230
OPM %25%24%34%27%38%31%34%8%-7%-4%7%15%
Other Income111211123454
Interest001122111246
Depreciation111134344456
Profit before tax2478129150-5-4822
Tax %8%27%36%32%10%16%18%-367%-12%-15%5%
Net Profit2356117120-5-5722
EPS in Rs20.2727.4943.3151.0920.279.8616.550.40-7.16-6.066.2518.30
Dividend Payout %0%36%23%4%5%10%8%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202021-20222022-2023
YoY Net Profit Growth (%)50.00%66.67%20.00%83.33%-36.36%71.43%-100.00%0.00%240.00%
Change in YoY Net Profit Growth (%)0.00%16.67%-46.67%63.33%-119.70%107.79%-171.43%100.00%240.00%

Cadsys (India) Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2013-2014 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:27%
5 Years:33%
3 Years:90%
TTM:-20%
Compounded Profit Growth
10 Years:10%
5 Years:-9%
3 Years:44%
TTM:-129%
Stock Price CAGR
10 Years:%
5 Years:27%
3 Years:75%
1 Year:-29%
Return on Equity
10 Years:9%
5 Years:-1%
3 Years:4%
Last Year:16%

Last Updated: Unknown

Balance Sheet

Last Updated: October 15, 2024, 4:01 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital111158888888
Reserves6812172442554944434047
Borrowings425617761318368184
Other Liabilities2654947443165108
Total Liabilities131723295560757373117193246
Fixed Assets34451630323330547974
CWIP000000007702
Investments000111100100
Other Assets10131923392942403555114170
Total Assets131723295560757373117193246

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +48457614-107-2-31-37
Cash from Investing Activity +-2-20-1-13-19-3-8-8-7-19-3
Cash from Financing Activity +2-2-0-212-0-244144638
Net Cash Flow55425-1310-1345-4-2

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-1.003.003.002.00-1.007.0012.00-10.00-20.00-39.00-69.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days4863642806879187178145128166
Inventory Days
Days Payable
Cash Conversion Cycle4863642806879187178145128166
Working Capital Days23-48-52-22299677225208117144215
ROCE %40%54%42%40%21%25%0%-9%-6%9%12%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2018Mar 2019Sep 2019Mar 2020Sep 2020Mar 2021Sep 2021Mar 2022Sep 2022Sep 2023Mar 2024Sep 2024
Promoters47.41%47.68%47.68%47.68%47.68%47.68%47.68%47.68%47.70%47.71%47.71%47.71%
DIIs0.43%0.43%0.16%0.16%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public52.16%51.90%52.17%52.15%52.31%52.32%52.32%52.32%52.30%52.29%52.29%52.29%
No. of Shareholders6236135925535244794634624433636801,336

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)10.736.25-6.07-7.150.40
Diluted EPS (Rs.)10.736.25-6.07-7.150.40
Cash EPS (Rs.)26.4616.19-2.31-2.465.53
Book Value[Excl.RevalReserv]/Share (Rs.)165.2198.6087.8467.9675.01
Book Value[Incl.RevalReserv]/Share (Rs.)165.2198.6087.8467.9675.01
Revenue From Operations / Share (Rs.)286.72232.1389.3741.9755.51
PBDIT / Share (Rs.)37.0221.21-3.28-3.654.97
PBIT / Share (Rs.)29.0414.98-7.63-8.36-0.17
PBT / Share (Rs.)19.2210.48-5.80-6.390.08
Net Profit / Share (Rs.)18.499.96-6.66-7.170.38
NP After MI And SOA / Share (Rs.)10.736.25-6.07-7.150.39
PBDIT Margin (%)12.919.13-3.67-8.708.95
PBIT Margin (%)10.126.45-8.54-19.92-0.32
PBT Margin (%)6.704.51-6.48-15.220.15
Net Profit Margin (%)6.444.29-7.45-17.070.68
NP After MI And SOA Margin (%)3.742.69-6.78-17.040.71
Return on Networth / Equity (%)14.089.28-9.07-10.480.53
Return on Capital Employeed (%)13.997.82-6.07-9.09-0.20
Return On Assets (%)3.272.42-3.89-7.390.40
Long Term Debt / Equity (X)0.441.240.520.330.16
Total Debt / Equity (X)1.461.480.660.340.21
Asset Turnover Ratio (%)0.980.230.240.170.27
Current Ratio (X)1.862.222.258.265.18
Quick Ratio (X)1.862.222.258.265.18
Dividend Payout Ratio (NP) (%)0.000.000.000.00313.05
Dividend Payout Ratio (CP) (%)0.000.000.000.0022.53
Earning Retention Ratio (%)0.000.000.000.00-213.05
Cash Earning Retention Ratio (%)0.000.000.000.0077.47
Interest Coverage Ratio (X)3.634.71-1.58-2.563.81
Interest Coverage Ratio (Post Tax) (X)2.773.21-4.09-6.410.08
Enterprise Value (Cr.)311.32121.2165.6723.1820.63
EV / Net Operating Revenue (X)1.450.690.970.730.49
EV / EBITDA (X)11.217.62-26.67-8.455.53
MarketCap / Net Operating Revenue (X)0.780.180.450.450.31
Retention Ratios (%)0.000.000.000.00-213.05
Price / BV (X)2.960.650.600.270.23
Price / Net Operating Revenue (X)0.780.180.450.450.31
EarningsYield0.040.14-0.14-0.370.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Cadsys (India) Ltd as of November 17, 2024 is: 171.85

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 17, 2024, Cadsys (India) Ltd is Undervalued by 22.75% compared to the current share price 140.00

Default values used*: Default value of 15 for Stock P/E is used

Intrinsic Value of Cadsys (India) Ltd as of November 17, 2024 is: 369.17

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 17, 2024, Cadsys (India) Ltd is Undervalued by 163.69% compared to the current share price 140.00

Default values used*: Default value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: 114.82%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 19.00%, which is a positive sign.
  2. The company has higher reserves (32.25 cr) compared to borrowings (23.25 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (62.50 cr) and profit (6.50 cr) over the years.
  1. The stock has a high average Working Capital Days of 84.33, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 96.92, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Cadsys (India) Ltd:
    1. Net Profit Margin: 6.44%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 13.99% (Industry Average ROCE: 18.81%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 14.08% (Industry Average ROE: 17.48%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 2.77
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.86
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 0 (Industry average Stock P/E: 35.15)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 1.46
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Cadsys (India) Ltd. is a Public Limited Listed company incorporated on 23/07/1992 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L72200TG1992PLC014558 and registration number is 014558. Currently Company is involved in the business activities of Data processing activities including report writing. Company’s Total Operating Revenue is Rs. 14.88 Cr. and Equity Capital is Rs. 7.50 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Enabled ServicesOffice # 803, 8th Floor, DSL Abacus IT Park, Hyderabad Telangana 500039info@cadsystech.com
http://www.cadsystech.com
Management
NamePosition Held
Mr. Nallani Chakravarthi Venkata RangacharyaManaging Director
Mrs. Nallani Chakravarthi PadmajaWhole Time Director
Mr. Sai Sridhar SangineniIndependent Director
Mr. Appalacharyulu ChilakamarriIndependent Director
Mrs. Chilakamarri MadhaviNon Executive Director
Mr. Sripadarajan NagarajanExecutive Director

FAQ

What is the latest intrinsic value of Cadsys (India) Ltd?

The latest intrinsic value of Cadsys (India) Ltd as on 17 November 2024 is ₹171.85, which is 22.75% higher than the current market price of ₹140.00.

What is the Market Cap of Cadsys (India) Ltd?

The Market Cap of Cadsys (India) Ltd is 105 Cr..

What is the current Stock Price of Cadsys (India) Ltd as on 17 November 2024?

The current stock price of Cadsys (India) Ltd as on 17 November 2024 is ₹140.

What is the High / Low of Cadsys (India) Ltd stocks in FY 2024?

In FY 2024, the High / Low of Cadsys (India) Ltd stocks is 511/118.

What is the Stock P/E of Cadsys (India) Ltd?

The Stock P/E of Cadsys (India) Ltd is .

What is the Book Value of Cadsys (India) Ltd?

The Book Value of Cadsys (India) Ltd is 72.0.

What is the Dividend Yield of Cadsys (India) Ltd?

The Dividend Yield of Cadsys (India) Ltd is 0.00 %.

What is the ROCE of Cadsys (India) Ltd?

The ROCE of Cadsys (India) Ltd is 12.4 %.

What is the ROE of Cadsys (India) Ltd?

The ROE of Cadsys (India) Ltd is 15.6 %.

What is the Face Value of Cadsys (India) Ltd?

The Face Value of Cadsys (India) Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Cadsys (India) Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE