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Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 538734 | NSE: CEINSYSTECH

Ceinsys Tech Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 8:52 pm

Market Cap 2,311 Cr.
Current Price 1,414
High / Low1,450/333
Stock P/E50.8
Book Value 223
Dividend Yield0.18 %
ROCE22.4 %
ROE16.2 %
Face Value 10.0
PEG Ratio0.74

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

View Share Price Target for Ceinsys Tech Ltd

Competitors of Ceinsys Tech Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IDream Film Infrastructure Company Ltd 1.41 Cr. 93.899.0/85.0 2950.00 %%% 10.0
IB Infotech Enterprises Ltd 23.4 Cr. 182245/11030.7 16.80.55 %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 59.5 Cr. 17.327.0/16.2180 11.20.00 %%% 10.0
First Fintec Ltd 8.64 Cr. 8.3010.9/4.51 10.20.00 %2.41 %1.77 % 10.0
Industry Average39,977.65 Cr703.7691.08122.740.67%18.02%18.80%6.94

All Competitor Stocks of Ceinsys Tech Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales41545157415352735458637874
Expenses34504551355250514248526661
Operating Profit7366612221110111213
OPM %16%7%12%10%15%3%4%30%21%17%17%16%18%
Other Income0002222423465
Interest2322222221110
Depreciation1111111111111
Profit before tax40466-01221110131616
Tax %23%35%28%34%9%-1,778%-131%3%23%54%18%27%26%
Net Profit30345232185101212
EPS in Rs2.700.272.282.183.320.971.7613.765.423.026.717.117.29

Last Updated: October 7, 2024, 8:24 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 23, 2024, 2:47 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales5779108133144141176197185203220253273
Expenses446288110122119152147168179186207227
Operating Profit13171923222124501824334646
OPM %23%22%18%17%16%15%14%25%10%12%15%18%17%
Other Income0011353224101518
Interest468121617181713111064
Depreciation2223444433455
Profit before tax8910965531213295055
Tax %33%33%32%51%10%11%31%28%18%29%-7%30%
Net Profit567565322210313539
EPS in Rs13.958.236.844.525.514.093.0919.921.795.9620.0221.4224.13
Dividend Payout %10%13%0%20%21%31%73%13%126%38%10%12%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)20.00%16.67%-28.57%20.00%-16.67%-40.00%633.33%-90.91%400.00%210.00%12.90%
Change in YoY Net Profit Growth (%)0.00%-3.33%-45.24%48.57%-36.67%-23.33%673.33%-724.24%490.91%-190.00%-197.10%

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

Growth

Compounded Sales Growth
10 Years:12%
5 Years:7%
3 Years:11%
TTM:29%
Compounded Profit Growth
10 Years:18%
5 Years:59%
3 Years:161%
TTM:23%
Stock Price CAGR
10 Years:38%
5 Years:77%
3 Years:116%
1 Year:304%
Return on Equity
10 Years:13%
5 Years:14%
3 Years:14%
Last Year:16%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 5:36 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital379991111111115151617
Reserves131528324261607978147183218348
Borrowings3543579811811812297876357919
Other Liabilities243529412441616380735883112
Total Liabilities7599123180194230253250256299313326497
Fixed Assets22242629282828262345404476
CWIP0000000000000
Investments33006000019264417
Other Assets507196151159202225224233235246239404
Total Assets7599123180194230253250256299313326497

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-0-42-315-3243623264749
Cash from Investing Activity +-6-3-5-5-10-8-0408-9-5
Cash from Financing Activity +88835311-23-39-24-21-20-65
Net Cash Flow216-0-2-000-11418-21

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-22.00-26.00-38.00-75.00-96.00-97.00-98.00-47.00-69.00-39.00-24.0037.00

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 Days160121117160235300233205247153154143
Inventory Days15253831860675169181916716538
Days Payable2011941182181296171,6101,2301,367752403610
Cash Conversion Cycle111465318548181-149-1,359-834-1,053-584-196-459
Working Capital Days141141159274301363267245259231201145
ROCE %28%23%18%13%11%12%25%9%12%16%22%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters75.00%58.61%58.61%58.61%58.61%58.61%58.61%58.61%58.61%55.35%55.35%51.86%
FIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.19%0.05%0.00%0.00%4.27%
DIIs0.00%7.09%7.09%7.09%7.09%7.09%0.00%0.00%0.00%0.00%0.00%0.00%
Public25.00%34.30%34.30%34.31%34.31%34.32%41.39%41.20%41.34%44.65%44.66%43.88%
No. of Shareholders1,4261,4401,4161,4321,3901,3715,0697,30911,40111,59612,85515,560

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.)22.5220.028.121.7919.92
Diluted EPS (Rs.)22.5220.028.121.7919.92
Cash EPS (Rs.)17.3417.926.924.8323.41
Book Value[Excl.RevalReserv]/Share (Rs.)143.26128.51110.7080.1880.92
Book Value[Incl.RevalReserv]/Share (Rs.)143.26128.51110.7080.1880.92
Revenue From Operations / Share (Rs.)154.80142.24131.48166.62177.55
PBDIT / Share (Rs.)29.2022.1115.4715.7745.53
PBIT / Share (Rs.)26.0419.1913.5112.7442.04
PBT / Share (Rs.)23.1513.727.532.1927.62
Net Profit / Share (Rs.)14.1815.004.961.7919.92
NP After MI And SOA / Share (Rs.)21.4220.025.961.7919.92
PBDIT Margin (%)18.8515.5411.769.4625.64
PBIT Margin (%)16.8113.4910.277.6423.67
PBT Margin (%)14.959.645.721.3115.55
Net Profit Margin (%)9.1610.543.771.0711.22
NP After MI And SOA Margin (%)13.8314.074.531.0711.22
Return on Networth / Equity (%)14.9515.575.642.2324.62
Return on Capital Employeed (%)17.8514.7612.0715.6750.36
Return On Assets (%)10.739.873.060.788.85
Long Term Debt / Equity (X)0.000.000.000.010.02
Total Debt / Equity (X)0.010.270.370.951.06
Asset Turnover Ratio (%)0.790.570.730.730.78
Current Ratio (X)2.611.991.721.341.32
Quick Ratio (X)2.601.951.711.321.27
Dividend Payout Ratio (NP) (%)8.8111.2427.20139.3813.81
Dividend Payout Ratio (CP) (%)7.689.8120.4651.7511.75
Earning Retention Ratio (%)91.1988.7672.80-39.3886.19
Cash Earning Retention Ratio (%)92.3290.1979.5448.2588.25
Interest Coverage Ratio (X)10.134.042.591.503.16
Interest Coverage Ratio (Post Tax) (X)5.923.741.831.172.38
Enterprise Value (Cr.)936.84208.08289.25213.14176.86
EV / Net Operating Revenue (X)3.700.941.431.150.89
EV / EBITDA (X)19.646.1012.1212.153.49
MarketCap / Net Operating Revenue (X)3.800.891.220.740.46
Retention Ratios (%)91.1888.7572.79-39.3886.18
Price / BV (X)4.110.991.521.551.03
Price / Net Operating Revenue (X)3.800.891.220.740.46
EarningsYield0.030.150.030.010.24

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Ceinsys Tech Ltd as of November 22, 2024 is: 1,838.50

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 22, 2024, Ceinsys Tech Ltd is Undervalued by 30.02% compared to the current share price 1,414.00

Intrinsic Value of Ceinsys Tech Ltd as of November 22, 2024 is: 3,093.18

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 22, 2024, Ceinsys Tech Ltd is Undervalued by 118.75% compared to the current share price 1,414.00

Last 5 Year EPS CAGR: 68.24%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.75%, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -50.08, which is a positive sign.
  3. The company has higher reserves (100.31 cr) compared to borrowings (71.00 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (166.85 cr) and profit (17.85 cr) over the years.
  1. The stock has a high average Working Capital Days of 227.25, 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 Ceinsys Tech Ltd:
    1. Net Profit Margin: 9.16%
      • 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: 17.85% (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%: 14.95% (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): 5.92
      • 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: 2.6
      • 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: 50.8 (Industry average Stock P/E: 91.08)
      • 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: 0.01
      • 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

Ceinsys Tech Ltd. is a Public Limited Listed company incorporated on 05/05/1998 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L72300MH1998PLC114790 and registration number is 114790. Currently Company is involved in the business activities of Architectural and engineering activities and related technical consultancy. Company’s Total Operating Revenue is Rs. 196.20 Cr. and Equity Capital is Rs. 15.43 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & Software10/5, IT Park, Opp. VNIT, Nagpur Maharashtra 440022cs@ceinsys.com
http://www.ceinsys.com
Management
NamePosition Held
Mr. Sagar MegheChairman, Non Ind & Non Exe Director
Mr. Prashant KamatVice Chairman & Whole Time Dir
Mr. Kaushik KhonaManaging Director
Dr. Abhay KimmatkarManaging Director
Dr. Satish WateInd. Non-Executive Director
Mr. Kishore DewaniInd. Non-Executive Director
Mr. Dhruv KajiInd. Non-Executive Director
Mrs. Maya Swaminathan SinhaInd. Non-Executive Woman Director

FAQ

What is the latest intrinsic value of Ceinsys Tech Ltd?

The latest intrinsic value of Ceinsys Tech Ltd as on 21 November 2024 is ₹1838.50, which is 30.02% higher than the current market price of ₹1,414.00.

What is the Market Cap of Ceinsys Tech Ltd?

The Market Cap of Ceinsys Tech Ltd is 2,311 Cr..

What is the current Stock Price of Ceinsys Tech Ltd as on 21 November 2024?

The current stock price of Ceinsys Tech Ltd as on 21 November 2024 is ₹1,414.

What is the High / Low of Ceinsys Tech Ltd stocks in FY 2024?

In FY 2024, the High / Low of Ceinsys Tech Ltd stocks is 1,450/333.

What is the Stock P/E of Ceinsys Tech Ltd?

The Stock P/E of Ceinsys Tech Ltd is 50.8.

What is the Book Value of Ceinsys Tech Ltd?

The Book Value of Ceinsys Tech Ltd is 223.

What is the Dividend Yield of Ceinsys Tech Ltd?

The Dividend Yield of Ceinsys Tech Ltd is 0.18 %.

What is the ROCE of Ceinsys Tech Ltd?

The ROCE of Ceinsys Tech Ltd is 22.4 %.

What is the ROE of Ceinsys Tech Ltd?

The ROE of Ceinsys Tech Ltd is 16.2 %.

What is the Face Value of Ceinsys Tech Ltd?

The Face Value of Ceinsys Tech 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 Ceinsys Tech 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