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Last Updated on: 15 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

DC Infotech & Communication Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 15, 2024, 11:36 pm

Market Cap 575 Cr.
Current Price 427
High / Low458/155
Stock P/E45.7
Book Value 35.8
Dividend Yield0.00 %
ROCE29.4 %
ROE30.5 %
Face Value 10.0
PEG Ratio0.95

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

View Share Price Target for DC Infotech & Communication Ltd

Competitors of DC Infotech & Communication Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Computer Point Ltd 20.0 Cr. 6.6711.6/3.70400 11.10.00 %0.03 %0.03 % 10.0
ACI Infocom Ltd 24.0 Cr. 2.173.67/1.1385.6 1.530.00 %1.07 %0.53 % 1.00
TVS Electronics Ltd 768 Cr. 410490/235 53.00.24 %0.73 %0.08 % 10.0
Panache Digilife Ltd 292 Cr. 192192/64.477.4 26.60.00 %12.8 %13.2 % 10.0
HCL Infosystems Ltd 612 Cr. 18.726.7/13.6 8.180.00 %28.0 %% 2.00
Industry Average928.44N/A75.88N/AN/A14.8016.17N/A

All Competitor Stocks of DC Infotech & Communication Ltd

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales58.2647.9276.2190.2189.3283.9296.1792.68110.43101.94
Expenses56.4446.4274.0687.7585.9080.8792.3988.81105.1297.81
Operating Profit1.821.502.152.463.423.053.783.875.314.13
OPM %3.12%3.13%2.82%2.73%3.83%3.63%3.93%4.18%4.81%4.05%
Other Income0.00-0.050.090.020.030.150.070.020.080.26
Interest0.270.470.400.510.710.750.790.921.031.37
Depreciation0.080.090.180.170.180.190.190.150.160.16
Profit before tax1.470.891.661.802.562.262.872.824.202.86
Tax %25.17%17.98%26.51%25.00%26.17%25.22%25.09%25.18%25.48%24.48%
Net Profit1.100.731.231.351.891.692.152.113.132.17
EPS in Rs0.920.611.021.121.581.411.791.762.611.81

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales15148169232359383
Expenses14143163225346367
Operating Profit15571316
OPM %8%3%3%3%4%4%
Other Income0-10000
Interest022233
Depreciation000011
Profit before tax1235912
Tax %33%25%31%27%25%
Net Profit112479
EPS in Rs0.811.061.833.335.907.57
Dividend Payout %0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)0.00%100.00%100.00%75.00%
Change in YoY Net Profit Growth (%)0.00%100.00%0.00%-25.00%

DC Infotech & Communication Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 4 years from 2019-2020 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:98%
3 Years:40%
TTM:34%
Compounded Profit Growth
10 Years:%
5 Years:82%
3 Years:74%
TTM:60%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:134%
1 Year:159%
Return on Equity
10 Years:%
5 Years:24%
3 Years:27%
Last Year:31%

Last Updated: Unknown

Balance Sheet

Last Updated: October 15, 2024, 3:55 pm

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital466121213
Reserves11012101834
Borrowings191917182638
Other Liabilities3235376184124
Total Liabilities557073102140208
Fixed Assets111212
CWIP000000
Investments000000
Other Assets546972100139206
Total Assets557073102140208

Reserves and Borrowings Chart

Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 1-7110-11-8
Cash from Investing Activity 0-0-0-1-0-0
Cash from Financing Activity -110-3-1617
Net Cash Flow03-28-59

Free Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-18.00-14.00-12.00-11.00-13.00

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 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days49479717272100
Inventory Days8248275626051
Days Payable8509482948794
Cash Conversion Cycle4696763414557
Working Capital Days5047673465159
ROCE %16%14%18%26%29%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Sep 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters60.00%60.00%60.00%60.00%60.00%60.00%60.00%60.00%60.00%60.00%55.38%55.38%
FIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%1.00%
Public40.00%40.00%40.00%40.00%40.00%40.01%40.00%40.00%40.00%40.02%44.62%43.62%
No. of Shareholders60526872761,5981,9672,5102,9523,4295,3337,020

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.)9.515.903.343.662.96
Diluted EPS (Rs.)9.395.903.343.662.96
Cash EPS (Rs.)9.366.513.684.162.60
Book Value[Excl.RevalReserv]/Share (Rs.)38.9124.6118.7130.7527.08
Book Value[Incl.RevalReserv]/Share (Rs.)38.9124.6118.7130.7527.08
Revenue From Operations / Share (Rs.)353.56299.69193.76292.21245.91
PBDIT / Share (Rs.)16.2010.826.188.917.90
PBIT / Share (Rs.)15.7710.215.848.427.42
PBT / Share (Rs.)12.037.914.565.284.18
Net Profit / Share (Rs.)8.935.903.343.662.12
PBDIT Margin (%)4.583.613.193.053.21
PBIT Margin (%)4.463.403.012.883.01
PBT Margin (%)3.402.632.351.801.69
Net Profit Margin (%)2.521.961.721.250.86
Return on Networth / Equity (%)22.9423.9617.8311.917.81
Return on Capital Employeed (%)40.2138.2726.6920.4419.92
Return On Assets (%)5.585.053.933.021.80
Long Term Debt / Equity (X)0.000.000.000.330.37
Total Debt / Equity (X)0.740.790.620.931.18
Asset Turnover Ratio (%)2.642.982.672.452.37
Current Ratio (X)1.311.281.321.491.44
Quick Ratio (X)0.930.770.830.820.82
Interest Coverage Ratio (X)4.334.704.852.852.44
Interest Coverage Ratio (Post Tax) (X)3.393.563.622.172.06
Enterprise Value (Cr.)261.77137.0055.5044.4839.01
EV / Net Operating Revenue (X)0.560.380.230.250.26
EV / EBITDA (X)12.4310.557.488.328.23
MarketCap / Net Operating Revenue (X)0.510.320.210.160.15
Price / BV (X)4.683.962.241.551.44
Price / Net Operating Revenue (X)0.510.320.210.160.15
EarningsYield0.040.060.070.070.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of DC Infotech & Communication Ltd as of October 15, 2024 is: ₹508.98

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 15, 2024, DC Infotech & Communication Ltd is Undervalued by 19.20% compared to the current share price ₹427.00

Intrinsic Value of DC Infotech & Communication Ltd as of October 15, 2024 is: ₹754.15

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 October 15, 2024, DC Infotech & Communication Ltd is Undervalued by 76.62% compared to the current share price ₹427.00

Last 5 Year EPS CAGR: 48.17%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 17.17%, which is a positive sign.
  2. The company has shown consistent growth in sales (217.67 cr) and profit (5.33 cr) over the years.
  1. The stock has a high average Working Capital Days of 134.83, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 123.67, which may not be favorable.
  3. The company has higher borrowings (22.83) compared to reserves (14.17), which may suggest financial risk.

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 DC Infotech & Communication Ltd:
    1. Net Profit Margin: 2.52%
      • 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: 40.21% (Industry Average ROCE: 14.8%)
      • 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%: 22.94% (Industry Average ROE: 16.17%)
      • 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): 3.39
      • 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: 0.93
      • 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: 45.7 (Industry average Stock P/E: 75.88)
      • 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: 0.74
      • 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

DC Infotech and Communication Ltd. is a Public Limited Listed company incorporated on 15/01/2019 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is U74999MH2019PLC319622 and registration number is 319622. Currently Company is involved in the business activities of Wholesale of machinery, equipment and supplies. Company’s Total Operating Revenue is Rs. 232.51 Cr. and Equity Capital is Rs. 12.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Networking EquipmentUnit No. 2, Aristocrate, Ground Floor, Mumbai Maharashtra 400069info@dcinfotech.com
http://www.dcinfotech.com
Management
NamePosition Held
Mr. Chetankumar TimbadiaManaging Director
Mr. Devendra SayaniWhole Time Director
Mr. Jayeshkumar SayaniNon Executive Director
Ms. Sneha ChotaiIndependent Director
Mrs. Lipee RajaniIndependent Director
Mr. Chandrashekar GaonkarIndependent Director

FAQ

What is the latest fair value of DC Infotech & Communication Ltd?

The latest fair value of DC Infotech & Communication Ltd is ₹508.98.

What is the Market Cap of DC Infotech & Communication Ltd?

The Market Cap of DC Infotech & Communication Ltd is 575 Cr..

What is the current Stock Price of DC Infotech & Communication Ltd as on 15 October 2024?

The current stock price of DC Infotech & Communication Ltd as on 15 October 2024 is ₹427.

What is the High / Low of DC Infotech & Communication Ltd stocks in FY 2024?

In FY 2024, the High / Low of DC Infotech & Communication Ltd stocks is 458/155.

What is the Stock P/E of DC Infotech & Communication Ltd?

The Stock P/E of DC Infotech & Communication Ltd is 45.7.

What is the Book Value of DC Infotech & Communication Ltd?

The Book Value of DC Infotech & Communication Ltd is 35.8.

What is the Dividend Yield of DC Infotech & Communication Ltd?

The Dividend Yield of DC Infotech & Communication Ltd is 0.00 %.

What is the ROCE of DC Infotech & Communication Ltd?

The ROCE of DC Infotech & Communication Ltd is 29.4 %.

What is the ROE of DC Infotech & Communication Ltd?

The ROE of DC Infotech & Communication Ltd is 30.5 %.

What is the Face Value of DC Infotech & Communication Ltd?

The Face Value of DC Infotech & Communication 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 DC Infotech & Communication 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