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Last Updated on: 17 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532528 | NSE: DATAMATICS

Datamatics Global Services Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 17, 2024, 4:28 pm

Market Cap 3,584 Cr.
Current Price 607
High / Low792/450
Stock P/E19.0
Book Value 208
Dividend Yield0.80 %
ROCE21.2 %
ROE16.6 %
Face Value 5.00
PEG Ratio1.03

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

View Share Price Target for Datamatics Global Services Ltd

Competitors of Datamatics Global Services Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hit Kit Global Solutions Ltd 6.26 Cr. 1.351.35/0.58156 1.860.00 %1.92 %1.94 % 2.00
Globalspace Technologies Ltd 62.7 Cr. 18.227.0/16.2190 11.20.00 %%% 10.0
First Fintec Ltd 8.51 Cr. 8.1810.9/4.51 10.20.00 %2.41 %1.77 % 10.0
ERP Soft Systems Ltd 43.6 Cr. 110190/65.6363 44.30.00 %1.25 %0.98 % 10.0
Equippp Social Impact Technologies Ltd 218 Cr. 21.936.7/20.22,422 0.650.00 %1.86 %4.06 % 1.00
Industry Average48,919.58 Cr736.04144.77115.070.62%17.84%18.62%6.88

All Competitor Stocks of Datamatics Global Services Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales288299301313327343373416391377369413394
Expenses246249250262279292314332323318317348343
Operating Profit41505151485259846859536551
OPM %14%17%17%16%15%15%16%20%17%16%14%16%13%
Other Income144611131011599111611
Interest1011111010100
Depreciation8889999999999
Profit before tax47464852525260806759547153
Tax %16%24%24%13%17%24%25%27%19%16%23%27%17%
Net Profit39353645433945585549415244
EPS in Rs6.725.996.277.747.366.787.7810.139.348.357.008.907.37

Last Updated: October 17, 2024, 4:28 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 17, 2024, 4:28 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales5507348288168529101,1331,2031,1491,2011,4591,5501,553
Expenses5016427427377698279981,0781,0051,0071,2151,3041,325
Operating Profit499286798483135125144194244246228
OPM %9%12%10%10%10%9%12%10%12%16%17%16%15%
Other Income9761415271251035394547
Interest5577656654442
Depreciation12162127242026373933353636
Profit before tax41786458698411588109192243251237
Tax %24%25%24%24%8%15%26%30%23%19%24%21%
Net Profit315849456472846284155185197186
EPS in Rs6.128.267.337.6011.0610.8712.6410.8113.5326.7132.0533.5931.62
Dividend Payout %16%15%14%10%7%7%10%0%0%14%16%7%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)87.10%-15.52%-8.16%42.22%12.50%16.67%-26.19%35.48%84.52%19.35%6.49%
Change in YoY Net Profit Growth (%)0.00%-102.61%7.35%50.39%-29.72%4.17%-42.86%61.67%49.04%-65.17%-12.87%

Datamatics Global Services Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

No data available for the compounded sales growth chart.

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital292929292929292929292930
Reserves2683073524684735176106566868281,0201,200
Borrowings411701699055663611820632117
Other Liabilities99144125150123150191206172190212217
Total Liabilities4376516767386807638671,0109081,1101,2831,463
Fixed Assets166247238256263310352347213188218219
CWIP171111215110300
Investments63878413072335736157273354546
Other Assets192306343350343414457626538645710698
Total Assets4376516767386807638671,0109081,1101,2831,463

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 508586786539083112182130184
Cash from Investing Activity -34-99-15-52-23-35-65-10-99-134-99-179
Cash from Financing Activity -19115-24-18-56-4-3751-10921-66-38
Net Cash Flow-32418-3714-12125-9669-35-34

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow8.00-78.00-83.00-11.0029.0017.0099.007.00124.00131.00223.00229.00

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 Days717673836882798358746767
Inventory Days
Days Payable
Cash Conversion Cycle717673836882798358746767
Working Capital Days537066705578717376717372
ROCE %13%18%12%11%12%14%17%14%14%22%24%21%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters74.29%74.30%74.30%74.30%74.30%70.91%70.91%66.50%66.50%66.44%66.44%66.44%
FIIs1.17%1.64%1.68%2.18%2.25%2.32%2.70%2.55%3.14%2.81%2.33%2.19%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.19%0.33%0.36%0.19%0.16%
Public24.54%24.06%24.02%23.52%23.44%26.76%26.39%30.75%30.04%30.40%31.05%31.21%
No. of Shareholders40,82639,48840,58040,12538,43538,50639,36541,73542,96946,79351,52051,469

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Groww Nifty Total Market Index Fund2300.010.0116,1492024-10-13-98.58%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)33.6032.0526.7113.5310.81
Diluted EPS (Rs.)33.6032.0526.7113.5310.81
Cash EPS (Rs.)39.5637.3632.0220.8716.54
Book Value[Excl.RevalReserv]/Share (Rs.)206.90176.51144.77121.33120.09
Book Value[Incl.RevalReserv]/Share (Rs.)206.90176.51144.77121.33120.09
Revenue From Operations / Share (Rs.)262.69247.49203.74194.92204.13
PBDIT / Share (Rs.)48.9947.7037.2525.9524.44
PBIT / Share (Rs.)42.8541.7831.6019.2618.17
PBT / Share (Rs.)42.5141.2832.5818.4814.71
Net Profit / Share (Rs.)33.4131.4326.3714.1810.26
NP After MI And SOA / Share (Rs.)33.5932.0526.7113.5310.81
PBDIT Margin (%)18.6419.2718.2813.3111.97
PBIT Margin (%)16.3116.8815.519.878.89
PBT Margin (%)16.1816.6815.999.477.20
Net Profit Margin (%)12.7112.7012.947.275.02
NP After MI And SOA Margin (%)12.7812.9413.116.945.29
Return on Networth / Equity (%)16.1218.0318.3711.139.29
Return on Capital Employeed (%)19.8922.4820.8415.0614.24
Return On Assets (%)13.5414.7414.198.786.31
Total Debt / Equity (X)0.000.000.050.000.14
Asset Turnover Ratio (%)1.131.220.660.540.62
Current Ratio (X)4.904.933.714.152.39
Quick Ratio (X)4.904.933.714.152.39
Dividend Payout Ratio (NP) (%)15.033.909.350.0010.80
Dividend Payout Ratio (CP) (%)12.713.297.720.006.83
Earning Retention Ratio (%)84.9796.1090.650.0089.20
Cash Earning Retention Ratio (%)87.2996.7192.280.0093.17
Interest Coverage Ratio (X)146.7396.6675.9947.1631.15
Interest Coverage Ratio (Post Tax) (X)101.0764.6951.7827.1817.49
Enterprise Value (Cr.)3008.131513.961603.80564.41159.98
EV / Net Operating Revenue (X)1.941.041.340.490.13
EV / EBITDA (X)10.415.387.303.691.11
MarketCap / Net Operating Revenue (X)2.031.151.470.580.19
Retention Ratios (%)84.9696.0990.640.0089.19
Price / BV (X)2.561.602.060.940.35
Price / Net Operating Revenue (X)2.031.151.470.580.19
EarningsYield0.060.110.080.110.26

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Datamatics Global Services Ltd as of October 17, 2024 is: ₹661.41

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 October 17, 2024, Datamatics Global Services Ltd is Undervalued by 9.14% compared to the current share price ₹606.00

Intrinsic Value of Datamatics Global Services Ltd as of October 17, 2024 is: ₹839.45

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 October 17, 2024, Datamatics Global Services Ltd is Undervalued by 38.52% compared to the current share price ₹606.00

Last 5 Year EPS CAGR: 26.92%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.00%, which is a positive sign.
  2. The company has higher reserves (615.42 cr) compared to borrowings (72.17 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (361.31 cr) and profit (125.31 cr) over the years.
  1. The stock has a high average Working Capital Days of 69.00, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 73.42, 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 Datamatics Global Services Ltd:
    1. Net Profit Margin: 12.71%
      • 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: 19.89% (Industry Average ROCE: 22.25%)
      • 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%: 16.12% (Industry Average ROE: 17.73%)
      • 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): 101.07
      • 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: 4.9
      • 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: 19 (Industry average Stock P/E: 34.85)
      • 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: 0
      • 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

Datamatics Global Services Ltd. is a Public Limited Listed company incorporated on 03/11/1987 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L72200MH1987PLC045205 and registration number is 045205. Currently Company is involved in the business activities of Other information technology and computer service activities. Company’s Total Operating Revenue is Rs. 578.51 Cr. and Equity Capital is Rs. 29.48 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwareKnowledge Centre, Mumbai Maharashtra 400093investors@datamatics.com
http://www.datamatics.com
Management
NamePosition Held
Dr. Lalit S KanodiaChairman
Ms. Mona BhideIndependent Director
Mr. Rahul L KanodiaVice Chairman & CEO
Mr. Sameer L KanodiaNon Executive Director
Mr. Dilip D DandekarIndependent Director
Mr. Vinay M AggarwalIndependent Director

FAQ

What is the latest fair value of Datamatics Global Services Ltd?

The latest fair value of Datamatics Global Services Ltd is ₹661.41.

What is the Market Cap of Datamatics Global Services Ltd?

The Market Cap of Datamatics Global Services Ltd is 3,584 Cr..

What is the current Stock Price of Datamatics Global Services Ltd as on 17 October 2024?

The current stock price of Datamatics Global Services Ltd as on 17 October 2024 is ₹607.

What is the High / Low of Datamatics Global Services Ltd stocks in FY 2024?

In FY 2024, the High / Low of Datamatics Global Services Ltd stocks is 792/450.

What is the Stock P/E of Datamatics Global Services Ltd?

The Stock P/E of Datamatics Global Services Ltd is 19.0.

What is the Book Value of Datamatics Global Services Ltd?

The Book Value of Datamatics Global Services Ltd is 208.

What is the Dividend Yield of Datamatics Global Services Ltd?

The Dividend Yield of Datamatics Global Services Ltd is 0.80 %.

What is the ROCE of Datamatics Global Services Ltd?

The ROCE of Datamatics Global Services Ltd is 21.2 %.

What is the ROE of Datamatics Global Services Ltd?

The ROE of Datamatics Global Services Ltd is 16.6 %.

What is the Face Value of Datamatics Global Services Ltd?

The Face Value of Datamatics Global Services Ltd is 5.00.

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 Datamatics Global Services 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