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Last Updated on: 25 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Cambridge Technology Enterprises Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 24, 2024, 9:57 pm

Market Cap 165 Cr.
Current Price 84.1
High / Low148/67.3
Stock P/E
Book Value 38.6
Dividend Yield0.00 %
ROCE8.71 %
ROE5.32 %
Face Value 10.0
PEG Ratio0.00

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

View Share Price Target for Cambridge Technology Enterprises Ltd

Competitors of Cambridge Technology Enterprises Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IDream Film Infrastructure Company Ltd 1.41 Cr. 93.898.5/85.0 2950.00 %%% 10.0
IB Infotech Enterprises Ltd 23.8 Cr. 186245/11031.3 16.80.54 %69.9 %50.5 % 10.0
Hit Kit Global Solutions Ltd 6.54 Cr. 1.411.41/0.5820.4 2.080.00 %1.92 %1.94 % 2.00
Globalspace Technologies Ltd 59.8 Cr. 17.427.0/16.2181 11.20.00 %%% 10.0
First Fintec Ltd 8.80 Cr. 8.4610.9/4.51 10.20.00 %2.41 %1.77 % 10.0
Industry Average41,321.35 Cr716.0491.12122.740.66%18.02%18.80%6.94

All Competitor Stocks of Cambridge Technology Enterprises Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales22.0724.4141.1724.8427.8530.4429.1136.4041.4942.4861.6352.7543.52
Expenses16.4034.3630.4521.0023.0328.0123.3328.8137.1640.0357.2253.2444.51
Operating Profit5.67-9.9510.723.844.822.435.787.594.332.454.41-0.49-0.99
OPM %25.69%-40.76%26.04%15.46%17.31%7.98%19.86%20.85%10.44%5.77%7.16%-0.93%-2.27%
Other Income2.170.443.960.360.340.380.961.60-0.210.670.870.670.67
Interest0.280.240.140.170.150.170.110.180.260.421.951.121.22
Depreciation1.762.091.741.561.551.701.761.731.832.133.052.322.45
Profit before tax5.80-11.8412.802.473.460.944.877.282.030.570.28-3.26-3.99
Tax %-9.14%-1.27%5.86%8.91%4.91%41.49%24.02%3.98%25.62%91.23%235.71%-9.51%-6.52%
Net Profit6.33-11.9912.052.253.290.553.716.991.510.05-0.38-3.59-4.25
EPS in Rs3.22-6.116.141.151.680.281.893.560.770.03-0.20-1.71-1.93

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales759025326610199103106109112182200
Expenses12278232754798280929995163195
Operating Profit-47122611221723141117195
OPM %-63%13%8%18%17%22%17%22%13%10%15%10%3%
Other Income2-2211141127233
Interest3200012121135
Depreciation101136433877910
Profit before tax-58-13247211220591210-6
Tax %2%-5%41%15%-38%22%-6%5%12%6%17%20%
Net Profit-57-1413916131959108-8
EPS in Rs-29.00-6.900.571.594.628.305.279.602.434.494.994.15-3.81
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)75.44%107.14%200.00%200.00%77.78%-18.75%46.15%-73.68%80.00%11.11%-20.00%
Change in YoY Net Profit Growth (%)0.00%31.70%92.86%0.00%-122.22%-96.53%64.90%-119.84%153.68%-68.89%-31.11%

Cambridge Technology Enterprises Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:23%
5 Years:15%
3 Years:24%
TTM:3%
Compounded Profit Growth
10 Years:17%
5 Years:-21%
3 Years:-9%
TTM:-221%
Stock Price CAGR
10 Years:30%
5 Years:28%
3 Years:14%
1 Year:18%
Return on Equity
10 Years:15%
5 Years:9%
3 Years:9%
Last Year:5%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:33 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital202020202020202020202020
Reserves569192637425152667993
Borrowings-0-0-0712121518173657120
Other Liabilities76582520311526132140
Total Liabilities313234548289107103115134177272
Fixed Assets131315199632120193740
CWIP-0-0-0-0-0-008-022-037
Investments-0-0-074136241711121318
Other Assets18191927324780588382127178
Total Assets313234548289107103115134177272

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +8-1810280-021166-2212
Cash from Investing Activity +-12-0-5-16-352-0-18-6-26-9-43
Cash from Financing Activity +30065-22-42182152
Net Cash Flow-1-12-0-211-013-1-1022

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-47.0012.002.006.004.0010.005.008.00-4.00-6.00-19.00-38.00

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 Days381598349525822610510492111105
Inventory Days0000000
Days Payable
Cash Conversion Cycle381598349525822610510492111105
Working Capital Days28127105661065130996998125126
ROCE %69%8%13%19%38%22%29%10%10%12%9%9%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters46.91%46.91%46.91%46.91%46.91%46.91%46.91%46.91%46.91%46.91%46.91%46.91%
FIIs0.31%0.15%0.15%0.04%0.00%0.00%0.00%0.00%0.05%0.10%0.00%0.00%
Public49.99%50.15%50.15%50.26%50.31%50.32%50.56%51.14%51.10%51.05%51.16%51.15%
Others2.79%2.79%2.79%2.79%2.79%2.79%2.53%1.94%1.94%1.94%1.94%1.94%
No. of Shareholders10,13111,64411,70911,92611,77011,43611,31311,24012,28712,34512,80012,209

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.)2.844.154.994.492.43
Diluted EPS (Rs.)2.844.154.994.492.43
Cash EPS (Rs.)7.838.618.338.216.44
Book Value[Excl.RevalReserv]/Share (Rs.)57.2950.5443.4938.0837.44
Book Value[Incl.RevalReserv]/Share (Rs.)57.2950.5443.4938.0837.44
Revenue From Operations / Share (Rs.)105.0592.7157.1855.7653.85
PBDIT / Share (Rs.)13.5711.069.639.038.04
PBIT / Share (Rs.)8.596.616.295.314.03
PBT / Share (Rs.)4.095.185.994.792.77
Net Profit / Share (Rs.)2.844.164.994.492.43
NP After MI And SOA / Share (Rs.)2.844.154.994.492.43
PBDIT Margin (%)12.9211.9316.8416.1914.93
PBIT Margin (%)8.177.1310.999.517.48
PBT Margin (%)3.895.5810.478.595.13
Net Profit Margin (%)2.704.488.728.044.50
NP After MI And SOA Margin (%)2.704.478.728.044.50
Return on Networth / Equity (%)4.968.2411.4711.786.48
Return on Capital Employeed (%)9.219.7511.7012.789.63
Return On Assets (%)2.044.617.287.684.60
Long Term Debt / Equity (X)0.560.290.170.040.07
Total Debt / Equity (X)1.040.570.380.220.22
Asset Turnover Ratio (%)0.910.550.470.430.46
Current Ratio (X)1.782.442.622.272.40
Quick Ratio (X)1.782.442.622.272.40
Interest Coverage Ratio (X)3.027.7232.0117.646.36
Interest Coverage Ratio (Post Tax) (X)1.633.9017.589.772.92
Enterprise Value (Cr.)223.62126.55119.2032.6631.14
EV / Net Operating Revenue (X)1.080.691.060.290.29
EV / EBITDA (X)8.395.836.301.841.97
MarketCap / Net Operating Revenue (X)0.780.531.090.450.25
Price / BV (X)1.440.981.430.660.36
Price / Net Operating Revenue (X)0.780.531.090.450.25
EarningsYield0.030.080.080.170.17

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Cambridge Technology Enterprises Ltd as of November 25, 2024 is: 31.42

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 25, 2024, Cambridge Technology Enterprises Ltd is Overvalued by 62.64% compared to the current share price 84.10

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

Intrinsic Value of Cambridge Technology Enterprises Ltd as of November 25, 2024 is: 21.15

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 25, 2024, Cambridge Technology Enterprises Ltd is Overvalued by 74.85% compared to the current share price 84.10

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

Last 5 Year EPS CAGR: -32.69%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 20.67%, which is a positive sign.
  2. The company has higher reserves (40.42 cr) compared to borrowings (24.50 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (100.00 cr) and profit (1.92 cr) over the years.
  1. The stock has a high average Working Capital Days of 87.33, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 98.50, 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 Cambridge Technology Enterprises Ltd:
    1. Net Profit Margin: 2.7%
      • 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: 9.21% (Industry Average ROCE: 18.02%)
      • 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%: 4.96% (Industry Average ROE: 18.8%)
      • 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): 1.63
      • 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: 1.78
      • 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: 91.12)
      • 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: 1.04
      • 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

Cambridge Technology Enterprises Ltd. is a Public Limited Listed company incorporated on 28/01/1999 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L72200TG1999PLC030997 and registration number is 030997. Currently Company is involved in the business activities of Computer programming, consultancy and related activities. Company’s Total Operating Revenue is Rs. 46.48 Cr. and Equity Capital is Rs. 19.63 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwareCapital Park, 4th Floor, Unit No. 403B & 404, Plot No. 1-98/4/1-13, 28 & 29, Survey No.72, Hyderabad Telangana 500081investors@ctepl.com
http://www.ctepl.com
Management
NamePosition Held
Mr. Dharani Raghurama SwaroopWhole Time Director
Mr. Stefan HetgesNon Executive Director
Mr. Srinivas MedepalliIndependent Director
Ms. Manjula AletiIndependent Director
Mr. Sridhar LalpetIndependent Director
Mrs. K Jayalakshmi KumariIndependent Director

FAQ

What is the latest intrinsic value of Cambridge Technology Enterprises Ltd?

The latest intrinsic value of Cambridge Technology Enterprises Ltd as on 25 November 2024 is ₹31.42, which is 62.64% lower than the current market price of ₹84.10.

What is the Market Cap of Cambridge Technology Enterprises Ltd?

The Market Cap of Cambridge Technology Enterprises Ltd is 165 Cr..

What is the current Stock Price of Cambridge Technology Enterprises Ltd as on 25 November 2024?

The current stock price of Cambridge Technology Enterprises Ltd as on 25 November 2024 is 84.1.

What is the High / Low of Cambridge Technology Enterprises Ltd stocks in FY 2024?

In FY 2024, the High / Low of Cambridge Technology Enterprises Ltd stocks is 148/67.3.

What is the Stock P/E of Cambridge Technology Enterprises Ltd?

The Stock P/E of Cambridge Technology Enterprises Ltd is .

What is the Book Value of Cambridge Technology Enterprises Ltd?

The Book Value of Cambridge Technology Enterprises Ltd is 38.6.

What is the Dividend Yield of Cambridge Technology Enterprises Ltd?

The Dividend Yield of Cambridge Technology Enterprises Ltd is 0.00 %.

What is the ROCE of Cambridge Technology Enterprises Ltd?

The ROCE of Cambridge Technology Enterprises Ltd is 8.71 %.

What is the ROE of Cambridge Technology Enterprises Ltd?

The ROE of Cambridge Technology Enterprises Ltd is 5.32 %.

What is the Face Value of Cambridge Technology Enterprises Ltd?

The Face Value of Cambridge Technology Enterprises 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 Cambridge Technology Enterprises 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