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Last Updated on: 23 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 531161 | NSE: ABMKNO

Fundamental Analysis of ABM Knowledgeware Ltd

Basic Stock Data

Last Updated: April 23, 2024, 11:01 am

Market Cap 235 Cr.
Current Price 118
High / Low148/77.6
Stock P/E19.3
Book Value 107
Dividend Yield1.06 %
ROCE8.33 %
ROE6.29 %
Face Value 5.00

Data Source: screener.in

Competitors of ABM Knowledgeware Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bodhtree Consulting Ltd 15.2 Cr. 7.598.65/5.15 20.50.00 %35.4 %47.7 % 10.0
Trejhara Solutions Ltd 269 Cr. 183223/55.8 1270.00 %20.3 %22.6 % 10.0
Intense Technologies Ltd 280 Cr. 120158/58.816.3 51.40.42 %16.4 %13.3 % 2.00
FCS Software Solutions Ltd 692 Cr. 4.056.69/2.05450 2.090.00 %0.96 %0.35 % 1.00
Accedere Ltd 44.7 Cr. 88.896.5/49.4 8.200.00 %2.27 %0.73 % 10.0
Industry Average260.18 Cr80.6993.2641.840.08%15.07%16.94%6.60

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales21.9521.7219.8722.0020.0016.0017.0316.8215.8017.4119.9518.18
Expenses17.5416.5514.1518.4817.4412.6312.5214.2013.0215.1416.7016.08
Operating Profit4.415.175.723.522.563.374.512.622.782.273.252.10
OPM %20.09%23.80%28.79%16.00%12.80%21.06%26.48%15.58%17.59%13.04%16.29%11.55%
Other Income0.701.081.040.751.120.391.261.721.581.801.451.44
Interest0.040.080.060.070.140.180.010.020.050.080.070.07
Depreciation0.280.290.290.300.300.310.310.310.300.310.290.29
Profit before tax4.795.886.413.903.243.275.454.014.013.684.343.18
Tax %27.14%25.68%23.09%20.26%25.00%24.46%25.14%20.45%21.45%17.12%21.66%19.18%
Net Profit3.484.384.933.112.432.474.083.193.143.063.402.58
EPS in Rs1.742.192.461.551.211.232.041.591.571.531.701.29

Last Updated: April 10, 2024, 3:46 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 6, 2024, 8:01 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales93688182879561556074846671
Expenses71506056606742354451675261
Operating Profit22182126272819201622171310
OPM %24%27%26%32%31%30%31%36%27%31%20%20%15%
Other Income1112232445456
Interest0000000000000
Depreciation0012232111111
Profit before tax23192226272819231926191715
Tax %33%32%33%34%35%35%25%30%20%24%24%23%
Net Profit15131418181814161520151312
EPS in Rs7.606.287.248.768.789.167.227.897.659.797.426.446.09
Dividend Payout %10%12%14%12%15%14%18%16%17%13%17%20%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-13.33%7.69%28.57%0.00%0.00%-22.22%14.29%-6.25%33.33%-25.00%-13.33%
Change in YoY Net Profit Growth (%)0.00%21.03%20.88%-28.57%0.00%-22.22%36.51%-20.54%39.58%-58.33%11.67%

Growth

Compounded Sales Growth
10 Years:0%
5 Years:2%
3 Years:3%
TTM:2%
Compounded Profit Growth
10 Years:0%
5 Years:-2%
3 Years:-6%
TTM:0%
Stock Price CAGR
10 Years:17%
5 Years:13%
3 Years:-1%
1 Year:34%
Return on Equity
10 Years:12%
5 Years:9%
3 Years:8%
Last Year:6%

Last Updated: April 16, 2024, 11:44 am

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital10101010101010101010101010
Reserves3849617691124135148157177189200204
Borrowings0000000000000
Other Liabilities13112226111312143033353030
Total Liabilities627093113112147157172198220234240244
Fixed Assets2242828274846464544444342
CWIP0000000000000
Investments03131514365085728710698
Other Assets60436482708575766810510391104
Total Assets627093113112147157172198220234240244

Reserves and Borrowings Chart

Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 64782816-641101543
Cash from Investing Activity -3-5-2-3-124-21-10-3217-14-14
Cash from Financing Activity -2-2-2-2-3-3-3-3-6-0-3-3
Net Cash Flow1-2321317-3027-2831-13-13

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow22.0018.0021.0026.0027.0028.0019.0020.0016.0022.0017.0013.00

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

ABM Knowledgeware Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days801331742488457316128190109167193
Inventory Days
Days Payable
Cash Conversion Cycle801331742488457316128190109167193
Working Capital Days309510115210210737221921188172231
ROCE %55%35%34%34%29%24%14%15%12%15%10%8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters66.93%66.93%66.93%66.93%66.93%66.93%66.93%66.93%66.93%66.93%66.93%66.93%
FIIs0.57%0.57%0.57%0.57%0.57%0.57%10.56%0.34%0.34%0.34%0.34%0.34%
Public32.50%32.50%32.50%32.50%32.50%32.50%22.52%32.73%32.73%32.73%32.72%32.74%
No. of Shareholders4,7985,3645,1215,1315,3285,6145,1584,8794,9294,8785,1154,776

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)6.647.2410.127.897.84
Diluted EPS (Rs.)6.647.2410.127.897.84
Cash EPS (Rs.)8.568.0311.549.078.29
Book Value[Excl.RevalReserv]/Share (Rs.)104.1898.2892.7782.1176.74
Book Value[Incl.RevalReserv]/Share (Rs.)104.1898.2892.7782.1176.74
Revenue From Operations / Share (Rs.)38.9346.6743.6135.4829.70
PBDIT / Share (Rs.)10.6310.2315.1911.1111.79
PBIT / Share (Rs.)9.179.0214.1910.2510.95
PBT / Share (Rs.)9.048.8513.9810.1310.82
Net Profit / Share (Rs.)7.106.8210.558.217.45
NP After MI And SOA / Share (Rs.)6.467.169.777.637.65
PBDIT Margin (%)27.3021.9134.8331.3139.69
PBIT Margin (%)23.5419.3332.5428.8836.85
PBT Margin (%)23.2118.9632.0628.5436.43
Net Profit Margin (%)18.2414.6124.1823.1425.07
NP After MI And SOA Margin (%)16.5815.3422.4021.5025.75
Return on Networth / Equity (%)6.277.3310.649.329.92
Return on Capital Employeed (%)8.508.8514.7111.9513.54
Return On Assets (%)5.346.198.907.819.09
Asset Turnover Ratio (%)0.270.360.350.320.33
Current Ratio (X)6.436.226.095.9317.83
Quick Ratio (X)6.436.226.095.9317.83
Dividend Payout Ratio (NP) (%)18.9017.040.0038.5719.20
Dividend Payout Ratio (CP) (%)15.4114.590.0034.6617.30
Earning Retention Ratio (%)81.1082.960.0061.4380.80
Cash Earning Retention Ratio (%)84.5985.410.0065.3482.70
Interest Coverage Ratio (X)82.7360.0772.0091.6294.71
Interest Coverage Ratio (Post Tax) (X)56.2741.0650.9868.7460.82
Enterprise Value (Cr.)138.76192.84177.0662.6090.60
EV / Net Operating Revenue (X)1.742.021.980.861.49
EV / EBITDA (X)6.379.205.692.753.75
MarketCap / Net Operating Revenue (X)1.912.292.570.952.08
Retention Ratios (%)81.0982.950.0061.4280.79
Price / BV (X)0.721.101.220.410.80
Price / Net Operating Revenue (X)1.912.292.570.952.08
EarningsYield0.080.060.080.220.12

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 131.27

The stock is undervalued by 11.25% compared to the current price ₹118

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.

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 23.75%, which is a positive sign.
  2. The company has higher reserves (126.85 cr) compared to borrowings (0.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (75.15 cr) and profit (21.77 cr) over the years.
  1. The stock has a high average Working Capital Days of 156.67, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 156.58, 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 ABM Knowledgeware Ltd:
    1. Net Profit Margin: 18.24%
      • 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: 8.50% (Industry Average ROCE: 13.88%)
      • 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%: 6.27% (Industry Average ROE: 10.07%)
      • 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): 56.27
      • 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: 6.43
      • 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: 19.3 (Industry average Stock P/E: 28.44)
      • 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: N/A
      • 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

ABM Knowledgeware Ltd. is a Public Limited Listed company incorporated on 02/03/1993 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L67190MH1993PLC113638 and registration number is 113638. Currently Company is involved in the business activities of Computer programming, consultancy and related activities. Company’s Total Operating Revenue is Rs. 83.59 Cr. and Equity Capital is Rs. 10.24 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwareABM House, Plot No. 268, Mumbai Maharashtra 400050egovernance@abmindia.com
http://www.abmindia.com
Management
NamePosition Held
Mr. Prakash B RaneManaging Director
Dr. Sumit D ChowdhuryDirector
Mr. Ashokkumar V DugadeDirector
Mr. Devendra ParulekarDirector
Mr. Sharadchandra D AbhyankarDirector
Mrs. Supriya P RaneDirector
Mr. Punit Kumar JainDirector

ABM Knowledgeware Ltd. Share Price Update

Share PriceValue
Today₹117.59
Previous Day₹116.02

FAQ

What is the latest fair value of ABM Knowledgeware Ltd?

The latest fair value of ABM Knowledgeware Ltd is 131.27.

What is the Market Cap of ABM Knowledgeware Ltd?

The Market Cap of ABM Knowledgeware Ltd is 235 Cr..

What is the current Stock Price of ABM Knowledgeware Ltd as on 23 April 2024?

The current stock price of ABM Knowledgeware Ltd as on 23 April 2024 is 118.

What is the High / Low of ABM Knowledgeware Ltd stocks in FY 2024?

In FY 2024, the High / Low of ABM Knowledgeware Ltd stocks is ₹148/77.6.

What is the Stock P/E of ABM Knowledgeware Ltd?

The Stock P/E of ABM Knowledgeware Ltd is 19.3.

What is the Book Value of ABM Knowledgeware Ltd?

The Book Value of ABM Knowledgeware Ltd is 107.

What is the Dividend Yield of ABM Knowledgeware Ltd?

The Dividend Yield of ABM Knowledgeware Ltd is 1.06 %.

What is the ROCE of ABM Knowledgeware Ltd?

The ROCE of ABM Knowledgeware Ltd is 8.33 %.

What is the ROE of ABM Knowledgeware Ltd?

The ROE of ABM Knowledgeware Ltd is 6.29 %.

What is the Face Value of ABM Knowledgeware Ltd?

The Face Value of ABM Knowledgeware 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 ABM Knowledgeware 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