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Last Updated on: 23 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 517477 | NSE: ELNET

Fundamental Analysis of Elnet Technologies Ltd

Share Price and Basic Stock Data

Last Updated: July 22, 2024, 10:02 pm

Market Cap 146 Cr.
Current Price 364
High / Low399/210
Stock P/E8.33
Book Value 348
Dividend Yield0.55 %
ROCE17.9 %
ROE13.4 %
Face Value 10.0
PEG Ratio0.83

Data Source: screener.in

Competitors of Elnet Technologies Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Empower India Ltd 255 Cr. 2.193.86/0.4936.9 2.540.00 %2.38 %2.35 % 1.00
Elnet Technologies Ltd 146 Cr. 364399/2108.33 3480.55 %17.9 %13.4 % 10.0
Ekennis Software Service Ltd 14.7 Cr. 105169/80.0 35.80.00 %1.55 %0.00 % 10.0
eDynamics Solutions Ltd 8.23 Cr. 3.223.22/1.14 13.90.00 %0.06 %0.06 % 10.0
ECS Biztech Ltd 24.9 Cr. 12.114.2/5.928.87 1.040.00 %4.78 %% 10.0
Industry Average51,716.97 Cr730.1185.17113.680.65%20.91%20.85%6.77

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales5.305.565.435.445.655.825.906.426.466.726.766.785.89
Expenses1.341.341.291.482.261.841.742.243.002.352.052.082.10
Operating Profit3.964.224.143.963.393.984.164.183.464.374.714.703.79
OPM %74.72%75.90%76.24%72.79%60.00%68.38%70.51%65.11%53.56%65.03%69.67%69.32%64.35%
Other Income1.211.291.281.301.271.401.471.561.671.582.142.202.36
Interest0.150.130.130.130.110.140.140.300.060.160.150.170.18
Depreciation0.830.880.890.850.800.760.690.610.500.440.420.420.37
Profit before tax4.194.504.404.283.754.484.804.834.575.356.286.315.60
Tax %27.68%24.00%24.55%21.96%32.27%23.66%13.96%30.43%38.95%26.73%24.20%24.56%27.68%
Net Profit3.033.423.323.332.543.424.133.372.793.934.764.764.05
EPS in Rs7.588.558.308.326.358.5510.328.426.989.8211.9011.9010.12

Last Updated: July 11, 2024, 9:00 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 11, 2024, 9:00 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales212221222322212421222526
Expenses10101010101110106699
Operating Profit111112121312111416161618
OPM %51%52%54%54%57%53%54%60%73%71%64%67%
Other Income112234455568
Interest000000111011
Depreciation335433344332
Profit before tax898101212121516171924
Tax %33%32%34%34%35%27%28%26%26%26%27%26%
Net Profit56668981112131417
EPS in Rs13.4814.6014.0816.1219.5822.5021.0227.1229.9831.5234.2243.72
Dividend Payout %10%10%10%11%7%7%7%4%5%6%6%0%

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%0.00%0.00%33.33%12.50%-11.11%37.50%9.09%8.33%7.69%21.43%
Change in YoY Net Profit Growth (%)0.00%-20.00%0.00%33.33%-20.83%-23.61%48.61%-28.41%-0.76%-0.64%13.74%

Growth

Compounded Sales Growth
10 Years:2%
5 Years:4%
3 Years:7%
TTM:6%
Compounded Profit Growth
10 Years:12%
5 Years:16%
3 Years:13%
TTM:29%
Stock Price CAGR
10 Years:21%
5 Years:31%
3 Years:20%
1 Year:25%
Return on Equity
10 Years:13%
5 Years:13%
3 Years:12%
Last Year:13%

Last Updated: July 18, 2024, 4:30 pm

Balance Sheet

Last Updated: July 11, 2024, 9:00 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital444444444444
Reserves343943495564718193106119135
Borrowings444444444444
Other Liabilities151615161516151615141715
Total Liabilities57636774788895105116128144159
Fixed Assets424138372323262724232222
CWIP000000100000
Investments333778833444
Other Assets121926304857617588101118133
Total Assets57636774788895105116128144159

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 8813-8257-2232-2514-62
Cash from Investing Activity -7-4-1-310-24-928-3534-1566
Cash from Financing Activity 10-00-1-1-1-1-0-1-1-1
Net Cash Flow25-0-01-0-35-38-23

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow7.007.008.008.009.008.007.0010.0012.0012.0012.0014.00

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 Days322931303739362953343635
Inventory Days
Days Payable
Cash Conversion Cycle322931303739362953343635
Working Capital Days20184519-124-142-6-1859-742-11
ROCE %20%19%17%18%20%19%16%18%18%16%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters52.85%52.85%52.85%52.85%52.85%52.85%52.85%52.85%52.85%52.85%52.85%52.85%
Government0.00%0.00%0.00%0.00%0.15%0.00%0.00%0.00%0.17%0.00%0.00%0.00%
Public47.15%47.15%47.15%47.15%47.00%47.17%47.16%47.15%46.98%47.15%47.15%47.15%
No. of Shareholders5,6695,4305,4845,4065,3165,1645,0574,9904,8625,6165,5895,568

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 18Mar 17Mar 16Mar 15Mar 14
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)22.5019.5916.1214.0714.60
Diluted EPS (Rs.)22.5019.5916.1214.0714.60
Cash EPS (Rs.)29.5027.8326.5226.3423.22
Book Value[Excl.RevalReserv]/Share (Rs.)169.40147.81132.51118.43107.48
Book Value[Incl.RevalReserv]/Share (Rs.)169.40147.81132.51118.43107.48
Revenue From Operations / Share (Rs.)55.5356.6655.2153.6953.90
PBDIT / Share (Rs.)38.3138.9034.9033.4730.25
PBIT / Share (Rs.)31.3130.6524.4921.1921.62
PBT / Share (Rs.)30.8330.1524.4921.1821.61
Net Profit / Share (Rs.)22.5019.5916.1114.0714.60
NP After MI And SOA / Share (Rs.)22.5019.5916.1114.0714.60
PBDIT Margin (%)68.9868.6463.2162.3356.11
PBIT Margin (%)56.3854.0944.3639.4740.11
PBT Margin (%)55.5153.2044.3639.4540.09
Net Profit Margin (%)40.5134.5629.1826.2027.08
NP After MI And SOA Margin (%)40.5134.5629.1826.2027.08
Return on Networth / Equity (%)13.2813.2512.1611.8713.58
Return on Capital Employeed (%)17.7719.6213.6612.8714.03
Return On Assets (%)10.1810.038.758.389.23
Long Term Debt / Equity (X)0.000.000.080.080.09
Total Debt / Equity (X)0.060.070.080.080.09
Asset Turnover Ratio (%)0.260.290.310.320.35
Current Ratio (X)2.521.3314.4418.239.11
Quick Ratio (X)2.521.3314.4418.239.11
Dividend Payout Ratio (NP) (%)0.000.0010.549.959.59
Dividend Payout Ratio (CP) (%)0.000.006.405.316.02
Earning Retention Ratio (%)0.000.0089.4690.0590.41
Cash Earning Retention Ratio (%)0.000.0093.6094.6993.98
Interest Coverage Ratio (X)79.4477.520.003645.973051.88
Interest Coverage Ratio (Post Tax) (X)47.6540.040.001508.391473.69
Enterprise Value (Cr.)24.0437.738.2911.807.78
EV / Net Operating Revenue (X)1.081.660.370.540.36
EV / EBITDA (X)1.572.420.590.880.64
MarketCap / Net Operating Revenue (X)2.702.231.301.220.71
Retention Ratios (%)0.000.0089.4590.0490.40
Price / BV (X)0.880.850.540.550.36
Price / Net Operating Revenue (X)2.702.231.301.220.71
EarningsYield0.140.150.220.210.37

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 390.58

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.

Undervalued: 7.30% compared to the current price 364

Intrinsic Value: 429.72

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.

Undervalued: 18.06% compared to the current price 364

Last 5 Year EPS CAGR: 10.02%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.42%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -17.67, which is a positive sign.
  3. The company has higher reserves (74.08 cr) compared to borrowings (4.00 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (22.50 cr) and profit (13.50 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 35.08, 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 Elnet Technologies Ltd:
    1. Net Profit Margin: 40.51%
      • 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: 17.77% (Industry Average ROCE: 20.91%)
      • 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%: 13.28% (Industry Average ROE: 20.85%)
      • 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): 47.65
      • 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: 2.52
      • 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: 8.33 (Industry average Stock P/E: 85.17)
      • 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: 0.06
      • 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

Elnet Technologies Ltd. is a Public Limited Listed company incorporated on 01/08/1990 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L72300TN1990PLC019459 and registration number is 019459. Currently Company is involved in the business activities of Real estate activities with own or leased property. Company’s Total Operating Revenue is Rs. 22.08 Cr. and Equity Capital is Rs. 4.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwareElnet Software City, TS 140, Block No.2 & 9, Chennai (Madras) Tamil Nadu 600113elnetcity@gmail.com
http://www.elnettechnologies.com
Management
NamePosition Held
Dr. S Aneesh SekharChairman & Non-Exe.Director
Mrs. Unnamalai ThiagarajanManaging Director
Mr. N Srivathsa DesikanNon Executive Director
Mr. C RamachandranNon Executive Director
Mr. S KirubanandanNon Executive Director
Mr. J RaviNon Executive Director
Mr. A P RadhakrishnanInd. Non-Executive Director
Mr. G ChellakrishnaInd. Non-Executive Director
Mr. K KasimInd. Non-Executive Director
Mr. R GanapathiInd. Non-Executive Director
Mr. H Karthik SeshadriInd. Non-Executive Director
Mr. G SenrayaperumalInd. Non-Executive Director

FAQ

What is the latest fair value of Elnet Technologies Ltd?

The latest fair value of Elnet Technologies Ltd is ₹390.58.

What is the Market Cap of Elnet Technologies Ltd?

The Market Cap of Elnet Technologies Ltd is 146 Cr..

What is the current Stock Price of Elnet Technologies Ltd as on 23 July 2024?

The current stock price of Elnet Technologies Ltd as on 23 July 2024 is 364.

What is the High / Low of Elnet Technologies Ltd stocks in FY 2024?

In FY 2024, the High / Low of Elnet Technologies Ltd stocks is 399/210.

What is the Stock P/E of Elnet Technologies Ltd?

The Stock P/E of Elnet Technologies Ltd is 8.33.

What is the Book Value of Elnet Technologies Ltd?

The Book Value of Elnet Technologies Ltd is 348.

What is the Dividend Yield of Elnet Technologies Ltd?

The Dividend Yield of Elnet Technologies Ltd is 0.55 %.

What is the ROCE of Elnet Technologies Ltd?

The ROCE of Elnet Technologies Ltd is 17.9 %.

What is the ROE of Elnet Technologies Ltd?

The ROE of Elnet Technologies Ltd is 13.4 %.

What is the Face Value of Elnet Technologies Ltd?

The Face Value of Elnet Technologies 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 Elnet Technologies 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