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Last Updated on: 22 May, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 538734 | NSE: CEINSYSTECH

Fundamental Analysis of Ceinsys Tech Ltd

Basic Stock Data

Last Updated: May 22, 2024, 6:55 pm

Market Cap 877 Cr.
Current Price 537
High / Low699/135
Stock P/E19.6
Book Value 137
Dividend Yield0.37 %
ROCE15.8 %
ROE17.1 %
Face Value 10.0
PEG Ratio2.53

Data Source: screener.in

Competitors of Ceinsys Tech Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Infosys Ltd 6,25,515 Cr. 1,5071,733/1,18525.6 1932.26 %40.5 %31.8 % 5.00
Bharatiya Global Infomedia Ltd 5.07 Cr. 3.204.90/1.95 55.00.00 %1.86 %2.10 % 10.0
Nucleus Software Exports Ltd 3,612 Cr. 1,3491,830/63417.4 2570.74 %27.1 %20.3 % 10.0
Onward Technologies Ltd 911 Cr. 404740/39126.8 92.00.74 %21.8 %17.8 % 10.0
HCL Technologies Ltd 3,64,364 Cr. 1,3431,697/1,08723.2 2523.87 %29.8 %23.5 % 2.00
Industry Average198,881.41 Cr921.2418.60169.801.52%24.21%19.10%7.40

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales48614154515741535273545863
Expenses39573450455135525051424852
Operating Profit94736661222111011
OPM %18%6%16%7%12%10%15%3%4%30%21%17%17%
Other Income0000022224234
Interest3223222222211
Depreciation1111111111111
Profit before tax5140466-0122111013
Tax %19%-10%23%35%28%34%9%1,778%-131%3%23%54%18%
Net Profit413034523218510
EPS in Rs3.900.812.700.272.282.183.320.971.7613.765.423.026.71

Last Updated: May 11, 2024, 9:19 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 26, 2024, 2:32 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales5779108133144141176197185203220248
Expenses446288110122119152147168179186194
Operating Profit131719232221245018243354
OPM %23%22%18%17%16%15%14%25%10%12%15%22%
Other Income00113532241013
Interest46812161718171311106
Depreciation222344443345
Profit before tax89109655312132956
Tax %33%33%32%51%10%11%31%28%18%29%-7%
Net Profit5675653222103145
EPS in Rs13.958.236.844.525.514.093.0919.921.795.9620.0228.91
Dividend Payout %10%13%0%20%21%31%73%13%126%38%10%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)20.00%16.67%-28.57%20.00%-16.67%-40.00%633.33%-90.91%400.00%210.00%
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%

Growth

Compounded Sales Growth
10 Years:14%
5 Years:9%
3 Years:4%
TTM:22%
Compounded Profit Growth
10 Years:19%
5 Years:61%
3 Years:11%
TTM:251%
Stock Price CAGR
10 Years:%
5 Years:36%
3 Years:55%
1 Year:289%
Return on Equity
10 Years:13%
5 Years:12%
3 Years:11%
Last Year:17%

Last Updated: May 22, 2024, 12:00 pm

Balance Sheet

Last Updated: May 16, 2024, 11:47 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital3799911111111151515
Reserves131528324261607978147183196
Borrowings354357981181181229787635736
Other Liabilities243529412441616380735859
Total Liabilities7599123180194230253250256299313307
Fixed Assets222426292828282623454043
CWIP000000000000
Investments330060000192638
Other Assets507196151159202225224233235246226
Total Assets7599123180194230253250256299313307

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -0-42-315-32436232647
Cash from Investing Activity -6-3-5-5-10-8-0408-9
Cash from Financing Activity 88835311-23-39-24-21-20
Net Cash Flow216-0-2-000-11418

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-22.00-26.00-38.00-75.00-96.00-97.00-98.00-47.00-69.00-39.00-24.00

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 2023
Debtor Days160121117160235300233205247153154
Inventory Days1525383186067516918191671653
Days Payable2011941182181296171,6101,2301,367752403
Cash Conversion Cycle111465318548181-149-1,359-834-1,053-584-196
Working Capital Days141141159274301363267245259231199
ROCE %28%23%18%13%11%12%25%9%12%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters75.00%75.00%75.00%58.61%58.61%58.61%58.61%58.61%58.61%58.61%58.61%55.35%
FIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.19%0.05%0.00%
DIIs0.00%0.00%0.00%7.09%7.09%7.09%7.09%7.09%0.00%0.00%0.00%0.00%
Public25.00%25.00%25.00%34.30%34.30%34.31%34.31%34.32%41.39%41.20%41.34%44.65%
No. of Shareholders8808701,4261,4401,4161,4321,3901,3715,0697,30911,40111,596

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
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)20.028.121.7919.923.10
Diluted EPS (Rs.)20.028.121.7919.923.10
Cash EPS (Rs.)17.926.924.8323.416.91
Book Value[Excl.RevalReserv]/Share (Rs.)128.51110.7080.1880.9263.84
Book Value[Incl.RevalReserv]/Share (Rs.)128.51110.7080.1880.9263.84
Revenue From Operations / Share (Rs.)142.24131.48166.62177.55158.67
PBDIT / Share (Rs.)22.1115.4715.7745.5322.90
PBIT / Share (Rs.)19.1913.5112.7442.0419.09
PBT / Share (Rs.)13.727.532.1927.624.50
Net Profit / Share (Rs.)15.004.961.7919.923.10
NP After MI And SOA / Share (Rs.)20.025.961.7919.923.10
PBDIT Margin (%)15.5411.769.4625.6414.43
PBIT Margin (%)13.4910.277.6423.6712.03
PBT Margin (%)9.645.721.3115.552.83
Net Profit Margin (%)10.543.771.0711.221.95
NP After MI And SOA Margin (%)14.074.531.0711.221.95
Return on Networth / Equity (%)15.575.642.2324.624.85
Return on Capital Employeed (%)14.7612.0715.6750.3627.90
Return On Assets (%)9.873.060.788.851.35
Long Term Debt / Equity (X)0.000.000.010.020.05
Total Debt / Equity (X)0.270.370.951.061.67
Asset Turnover Ratio (%)0.570.730.730.780.72
Current Ratio (X)1.991.721.341.321.18
Quick Ratio (X)1.951.711.321.271.18
Dividend Payout Ratio (NP) (%)11.2427.20139.3813.8163.25
Dividend Payout Ratio (CP) (%)9.8120.4651.7511.7528.36
Earning Retention Ratio (%)88.7672.80-39.3886.1936.75
Cash Earning Retention Ratio (%)90.1979.5448.2588.2571.64
Interest Coverage Ratio (X)4.042.591.503.161.57
Interest Coverage Ratio (Post Tax) (X)3.741.831.172.381.21
Enterprise Value (Cr.)208.08289.25213.14176.86218.74
EV / Net Operating Revenue (X)0.941.431.150.891.24
EV / EBITDA (X)6.1012.1212.153.498.59
MarketCap / Net Operating Revenue (X)0.891.220.740.460.66
Retention Ratios (%)88.7572.79-39.3886.1836.74
Price / BV (X)0.991.521.551.031.66
Price / Net Operating Revenue (X)0.891.220.740.460.66
EarningsYield0.150.030.010.240.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹460.87

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.

Overvalued: 14.18% compared to the current price ₹537

Intrinsic Value: ₹496.51

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 7.54% compared to the current price ₹537

Last 5 Year EPS CAGR: 7.73%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.18%, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -12.91, which is a positive sign.
  3. The company has higher reserves (77.83 cr) compared to borrowings (77.58 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (157.58 cr) and profit (15.25 cr) over the years.
  1. The stock has a high average Working Capital Days of 234.55, 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: 10.54%
      • 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: 14.76% (Industry Average ROCE: 21.31%)
      • 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%: 15.57% (Industry Average ROE: 42.06%)
      • 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): 3.74
      • 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: 1.95
      • 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: 19.6 (Industry average Stock P/E: 22.64)
      • 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: 0.27
      • 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 & CEO
Dr. Abhay KimmatkarManaging Director
Mr. Rahul JoharapurkarJoint Managing Director
Dr. Satish WateInd. Non-Executive Director
Mr. Dhruv KajiInd. Non-Executive Director
Mrs. Renu ChalluInd. Non-Executive Director
Mr. Kishore DewaniInd. Non-Executive Director

FAQ

What is the latest fair value of Ceinsys Tech Ltd?

The latest fair value of Ceinsys Tech Ltd is ₹460.87.

What is the Market Cap of Ceinsys Tech Ltd?

The Market Cap of Ceinsys Tech Ltd is 877 Cr..

What is the current Stock Price of Ceinsys Tech Ltd as on 22 May 2024?

The current stock price of Ceinsys Tech Ltd as on 22 May 2024 is ₹537.

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 ₹699/135.

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

The Stock P/E of Ceinsys Tech Ltd is 19.6.

What is the Book Value of Ceinsys Tech Ltd?

The Book Value of Ceinsys Tech Ltd is 137.

What is the Dividend Yield of Ceinsys Tech Ltd?

The Dividend Yield of Ceinsys Tech Ltd is 0.37 %.

What is the ROCE of Ceinsys Tech Ltd?

The ROCE of Ceinsys Tech Ltd is 15.8 %.

What is the ROE of Ceinsys Tech Ltd?

The ROE of Ceinsys Tech Ltd is 17.1 %.

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