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Last Updated on: 18 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Expleo Solutions Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 16, 2024, 11:51 pm

Market Cap 1,997 Cr.
Current Price 1,287
High / Low1,525/1,146
Stock P/E21.2
Book Value 394
Dividend Yield0.00 %
ROCE20.5 %
ROE15.9 %
Face Value 10.0
PEG Ratio0.95

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

View Share Price Target for Expleo Solutions Ltd

Competitors of Expleo Solutions Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0.59%0.49%0

All Competitor Stocks of Expleo Solutions Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales7472798897106196212220240231225234
Expenses565863738189166176178168188194202
Operating Profit18141715161730374272433133
OPM %24%19%21%17%17%16%15%17%19%30%19%14%14%
Other Income15141061113411
Interest0000001001011
Depreciation1212225777788
Profit before tax17171517151530313677392425
Tax %26%24%29%25%27%26%28%25%33%28%26%22%24%
Net Profit13131113111122232455291819
EPS in Rs12.2812.3010.7212.4910.8011.1021.2022.3923.3854.0028.3411.8812.15

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales121161194214264260271283270301743903931
Expenses109131155177210219231230217231618703751
Operating Profit13304037544140535370124200179
OPM %11%19%20%17%20%16%15%19%20%23%17%22%19%
Other Income102102611368561619
Interest0122000011123
Depreciation4565456666192830
Profit before tax18264232563748545468110186165
Tax %38%27%29%32%34%36%33%32%26%26%39%28%
Net Profit1119302237243236405068134122
EPS in Rs11.3219.2029.2620.5334.6822.2929.8633.7938.9249.2066.01130.59106.37
Dividend Payout %44%31%31%117%69%108%80%0%0%0%0%6%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)72.73%57.89%-26.67%68.18%-35.14%33.33%12.50%11.11%25.00%36.00%97.06%
Change in YoY Net Profit Growth (%)0.00%-14.83%-84.56%94.85%-103.32%68.47%-20.83%-1.39%13.89%11.00%61.06%

Expleo Solutions Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:17%
5 Years:28%
3 Years:47%
TTM:8%
Compounded Profit Growth
10 Years:12%
5 Years:20%
3 Years:22%
TTM:-27%
Stock Price CAGR
10 Years:8%
5 Years:35%
3 Years:6%
1 Year:-6%
Return on Equity
10 Years:24%
5 Years:23%
3 Years:22%
Last Year:16%

Last Updated: Unknown

Balance Sheet

Last Updated: October 15, 2024, 3:50 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital101011111111111010161616
Reserves78989198116118128142192379515596
Borrowings141210000007152626
Other Liabilities262754734363536256185174128
Total Liabilities128147165182171191192214264594730765
Fixed Assets312724252722192625108142131
CWIP011000000665
Investments0000000000015
Other Assets97119139157144169173188239480582614
Total Assets128147165182171191192214264594730765

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 182433584225411766242369
Cash from Investing Activity -23-1-611-14-1824-7-443-37-30
Cash from Financing Activity 6-13-11-39-31-31-26-29-3-10-7-15
Net Cash Flow2101630-2-2338-191917-2124

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow13.0016.0028.0027.0054.0041.0040.0053.0053.0063.00109.00174.00

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 Days93105977560925910374859794
Inventory Days
Days Payable
Cash Conversion Cycle93105977560925910374859794
Working Capital Days626823-78211550504894114
ROCE %31%40%29%51%31%38%40%38%39%36%39%20%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters56.17%56.17%56.17%56.17%56.17%56.17%56.17%71.05%71.05%71.05%71.05%71.05%
FIIs0.17%0.09%0.13%0.00%0.08%0.01%0.01%0.15%0.00%0.03%0.04%0.06%
DIIs1.83%2.16%2.08%2.39%3.35%4.52%4.74%2.92%2.73%3.26%2.37%1.83%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.01%0.00%0.00%0.00%0.00%0.00%
Public41.83%41.58%41.62%41.44%40.39%39.30%39.07%25.87%26.22%25.67%26.56%27.06%
No. of Shareholders18,24521,42521,98121,64922,02521,23620,67121,83125,65127,17929,46229,083

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Invesco India Multicap Fund133,9720.6617.73127,9852024-10-144.68%
Invesco India Smallcap Fund127,9850.5916.93127,9852024-10-140%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)58.2786.2752.5849.2038.51
Diluted EPS (Rs.)58.2786.2752.5849.2038.51
Cash EPS (Rs.)79.96157.7960.3254.8644.60
Book Value[Excl.RevalReserv]/Share (Rs.)393.78512.06248.93196.90148.46
Book Value[Incl.RevalReserv]/Share (Rs.)393.78512.06248.93196.90148.46
Revenue From Operations / Share (Rs.)621.69881.09394.57293.50262.78
PBDIT / Share (Rs.)100.42210.9378.8573.4259.49
PBIT / Share (Rs.)78.73183.7371.1167.7553.81
PBT / Share (Rs.)77.05181.5370.3766.7252.73
Net Profit / Share (Rs.)58.27130.6052.5849.2038.92
NP After MI And SOA / Share (Rs.)58.27130.6052.5849.2038.92
PBDIT Margin (%)16.1523.9319.9825.0122.63
PBIT Margin (%)12.6620.8518.0223.0820.47
PBT Margin (%)12.3920.6017.8322.7320.06
Net Profit Margin (%)9.3714.8213.3216.7614.81
NP After MI And SOA Margin (%)9.3714.8213.3216.7614.81
Return on Networth / Equity (%)14.7925.5021.1224.9826.21
Return on Capital Employeed (%)18.4833.4827.1133.1634.35
Return On Assets (%)11.8218.3315.6519.0818.62
Asset Turnover Ratio (%)1.291.841.461.361.43
Current Ratio (X)5.773.303.844.113.30
Quick Ratio (X)5.773.303.844.113.30
Interest Coverage Ratio (X)59.7495.85106.5171.2855.04
Interest Coverage Ratio (Post Tax) (X)35.6660.3572.0248.7737.01
Enterprise Value (Cr.)1697.971111.701571.40398.5262.33
EV / Net Operating Revenue (X)1.761.233.881.320.23
EV / EBITDA (X)10.895.1419.445.291.02
MarketCap / Net Operating Revenue (X)1.951.404.271.760.55
Price / BV (X)3.082.416.772.620.98
Price / Net Operating Revenue (X)1.951.404.271.760.55
EarningsYield0.040.100.030.090.26

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Expleo Solutions Ltd as of October 18, 2024 is: ₹1,354.66

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 18, 2024, Expleo Solutions Ltd is Undervalued by 5.26% compared to the current share price ₹1,287.00

Intrinsic Value of Expleo Solutions Ltd as of October 18, 2024 is: ₹1,656.38

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 18, 2024, Expleo Solutions Ltd is Undervalued by 28.70% compared to the current share price ₹1,287.00

Last 5 Year EPS CAGR: 22.27%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 36.00%, which is a positive sign.
  2. The company has higher reserves (212.58 cr) compared to borrowings (9.17 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (378.15 cr) and profit (68.92 cr) over the years.
  1. The stock has a high average Working Capital Days of 45.50, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 86.17, 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 Expleo Solutions Ltd:
    1. Net Profit Margin: 9.37%
      • 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: 18.48% (Industry Average ROCE: 0.59%)
      • 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%: 14.79% (Industry Average ROE: 0.49%)
      • 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): 35.66
      • 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: 5.77
      • 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: 21.2 (Industry average Stock P/E: 0)
      • 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
      • 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

Expleo Solutions Ltd. is a Public Limited Listed company incorporated on 08/06/1998 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L64202TN1998PLC066604 and registration number is 066604. Currently Company is involved in the business activities of Writing , modifying, testing of computer program to meet the needs of a particular client excluding web-page designing. Company’s Total Operating Revenue is Rs. 404.51 Cr. and Equity Capital is Rs. 10.25 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & Software6A, Sixth Floor, Prince Infocity II, Chennai (Madras) Tamil Nadu 600096investor.expleosol@expleogroup.com
https://www.investors.expleo.com
Management
NamePosition Held
Mr. Ralph Franz GillessenChairman & Non-Exe.Director
Mr. Balaji ViswanathanManaging Director & CEO
Mr. Rajesh KrishnamurthyNon Executive Director
Ms. Lilian Jessie PaulIndependent Director
Mr. Narayanan SubramaniamIndependent Director
Dr. Srivardhini Keshavamurthy JhaIndependent Director
Dr. Varadharajan SridharIndependent Director
Ms. Shalini Kalsi KamathInd. Non-Executive Director

FAQ

What is the latest fair value of Expleo Solutions Ltd?

The latest fair value of Expleo Solutions Ltd is ₹1354.66.

What is the Market Cap of Expleo Solutions Ltd?

The Market Cap of Expleo Solutions Ltd is 1,997 Cr..

What is the current Stock Price of Expleo Solutions Ltd as on 18 October 2024?

The current stock price of Expleo Solutions Ltd as on 18 October 2024 is ₹1,287.

What is the High / Low of Expleo Solutions Ltd stocks in FY 2024?

In FY 2024, the High / Low of Expleo Solutions Ltd stocks is 1,525/1,146.

What is the Stock P/E of Expleo Solutions Ltd?

The Stock P/E of Expleo Solutions Ltd is 21.2.

What is the Book Value of Expleo Solutions Ltd?

The Book Value of Expleo Solutions Ltd is 394.

What is the Dividend Yield of Expleo Solutions Ltd?

The Dividend Yield of Expleo Solutions Ltd is 0.00 %.

What is the ROCE of Expleo Solutions Ltd?

The ROCE of Expleo Solutions Ltd is 20.5 %.

What is the ROE of Expleo Solutions Ltd?

The ROE of Expleo Solutions Ltd is 15.9 %.

What is the Face Value of Expleo Solutions Ltd?

The Face Value of Expleo Solutions 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 Expleo Solutions 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