Kellton Tech Solutions Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 2:18 am

Market Cap	1,491 Cr.
Current Price	153
High / Low	184/85.0
Stock P/E	20.8
Book Value	50.1
Dividend Yield	0.00 %
ROCE	15.9 %
ROE	15.7 %
Face Value	5.00
PEG Ratio	-23.57

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

Stock P/E Current Price Intrinsic Value

View Share Price Target for

Competitors of

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
I Power Solutions India Ltd	6.41 Cr.	14.4	14.4/9.79		8.99	0.00 %	3.67 %	3.83 %	10.0
Hypersoft Technologies Ltd	7.47 Cr.	17.6	17.6/7.00		5.13	0.00 %	8.57 %	10.7 %	10.0
Nucleus Software Exports Ltd	2,790 Cr.	1,042	1,830/1,037	17.8	268	1.20 %	32.0 %	24.0 %	10.0
Newgen Software Technologies Ltd	22,083 Cr.	1,574	1,629/626	80.4	86.2	0.25 %	26.6 %	22.7 %	10.0
Mphasis Ltd	55,960 Cr.	2,951	3,240/2,180	35.1	458	1.86 %	24.0 %	18.4 %	10.0
Industry Average	110,804.13 Cr	845.54		28.42	141.39	0.68%	20.17%	16.60%	6.90

All Competitor Stocks of

Quarterly Result

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	204	209	219	210	217	227	231	243	249	241	245	248	262
Expenses	178	182	193	185	191	202	205	226	222	214	227	216	230
Operating Profit	26	27	26	26	26	25	25	17	27	26	18	32	32
OPM %	13%	13%	12%	12%	12%	11%	11%	7%	11%	11%	8%	13%	12%
Other Income	0	0	0	0	0	1	1	-183	0	0	0	1	0
Interest	3	3	3	3	3	3	3	3	4	4	5	5	5
Depreciation	3	3	3	3	3	3	3	5	4	4	4	4	4
Profit before tax	21	22	21	20	20	20	20	-174	20	19	10	24	23
Tax %	21%	21%	14%	7%	18%	16%	18%	1%	21%	12%	15%	1%	15%
Net Profit	16	17	18	19	16	17	17	-176	15	17	8	24	20
EPS in Rs	1.70	1.81	1.85	1.95	1.69	1.74	1.72	-18.28	1.60	1.71	0.84	2.46	2.05

Last Updated: October 24, 2024, 5:34 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 24, 2024, 5:34 pm

Month	Jun 2013	Jun 2014	Jun 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	49	134	238	359	615	783	814	771	776	843	917	983	996
Expenses	43	120	205	309	533	665	696	658	668	738	824	878	887
Operating Profit	6	13	33	49	82	118	118	112	108	105	93	104	109
OPM %	12%	10%	14%	14%	13%	15%	14%	15%	14%	12%	10%	11%	11%
Other Income	1	0	2	1	4	3	5	4	5	1	-182	2	2
Interest	1	3	6	9	10	16	19	16	13	12	11	18	19
Depreciation	1	2	3	3	4	5	7	13	13	11	14	16	16
Profit before tax	4	8	26	39	71	99	97	87	87	83	-114	72	76
Tax %	17%	16%	14%	21%	25%	31%	21%	19%	18%	16%	11%	11%
Net Profit	4	6	22	31	53	68	77	71	71	70	-127	64	69
EPS in Rs	0.53	0.77	2.54	3.31	5.63	7.10	7.98	7.32	7.38	7.30	-13.14	6.57	7.06
Dividend Payout %	0%	0%	0%	0%	0%	0%	0%	0%	3%	0%	0%	0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	70.97%	28.30%	13.24%	-7.79%	0.00%	-1.41%	-281.43%	150.39%
Change in YoY Net Profit Growth (%)	0.00%	-42.67%	-15.07%	-21.03%	7.79%	-1.41%	-280.02%	431.82%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2016-2017 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	35%
5 Years:	4%
3 Years:	8%
TTM:	7%

Compounded Profit Growth
10 Years:	33%
5 Years:	-4%
3 Years:	-3%
TTM:	33%

Stock Price CAGR
10 Years:	25%
5 Years:	54%
3 Years:	36%
1 Year:	52%

Return on Equity
10 Years:	20%
5 Years:	17%
3 Years:	16%
Last Year:	16%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 3:18 pm

Month	Jun 2013	Jun 2014	Jun 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	18	21	22	23	24	48	48	48	48	48	48	49	49
Reserves	9	23	56	102	154	212	281	368	372	430	325	395	439
Borrowings	6	26	82	87	120	114	123	132	109	122	162	156	141
Other Liabilities	11	32	77	97	154	207	147	170	102	71	61	61	76
Total Liabilities	44	101	237	309	452	581	599	718	632	672	596	660	705
Fixed Assets	22	54	107	118	222	228	220	278	206	199	64	69	63
CWIP	0	0	0	1	1	0	0	0	0	0	0	18	25
Investments	2	2	0	0	0	0	0	0	0	0	0	0	0
Other Assets	20	46	129	190	229	353	379	441	425	473	533	573	617
Total Assets	44	101	237	309	452	581	599	718	632	672	596	660	705

Reserves and Borrowings Chart

Cash Flow

Month	Jun 2013	Jun 2014	Jun 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	6	20	17	14	43	55	59	56	80	1	24	56
Cash from Investing Activity +	-7	-35	-56	-29	-46	-40	-39	-39	32	-4	-72	-40
Cash from Financing Activity +	1	19	51	7	12	-10	-15	-13	-102	-11	53	-19
Net Cash Flow	0	4	12	-9	8	4	5	4	9	-14	5	-2

Free Cash Flow

Month	Jun 2013	Jun 2014	Jun 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	0.00	-13.00	-49.00	-38.00	-38.00	4.00	-5.00	-20.00	-1.00	-17.00	-69.00	-52.00

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

Month	Jun 2013	Jun 2014	Jun 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	98	80	117	124	87	87	81	96	97	96	102	100
Inventory Days		30
Days Payable		331
Cash Conversion Cycle	98	-221	117	124	87	87	81	96	97	96	102	100
Working Capital Days	104	67	51	83	59	76	86	115	129	162	168	172
ROCE %	19%	22%	29%	34%	32%	34%	28%	21%	18%	17%	14%	16%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Promoters	52.18%	52.16%	52.16%	52.16%	52.11%	52.14%	52.14%	52.14%	52.10%	51.94%	51.68%	40.82%
FIIs	0.62%	0.48%	0.08%	0.09%	0.06%	0.03%	0.07%	0.08%	0.44%	0.79%	0.46%	1.32%
DIIs	3.24%	3.64%	0.29%	0.29%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Public	43.96%	43.72%	47.47%	47.45%	47.84%	47.84%	47.78%	47.79%	47.46%	47.27%	47.87%	57.86%
No. of Shareholders	69,487	1,17,877	1,18,022	1,15,533	1,12,155	1,08,170	1,16,164	1,44,331	1,53,949	1,65,970	1,65,953	1,84,966

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	5.00	5.00	5.00	5.00	5.00
Basic EPS (Rs.)	6.58	-13.56	7.39	7.34	7.70
Diluted EPS (Rs.)	6.58	-13.56	7.39	7.33	7.55
Cash EPS (Rs.)	8.21	-11.64	8.43	8.72	8.65
Book Value[Excl.RevalReserv]/Share (Rs.)	45.52	38.64	49.61	43.63	43.20
Book Value[Incl.RevalReserv]/Share (Rs.)	45.52	38.64	49.61	43.63	43.20
Revenue From Operations / Share (Rs.)	100.91	95.03	87.33	80.47	79.96
PBDIT / Share (Rs.)	10.91	9.91	10.98	11.67	12.07
PBIT / Share (Rs.)	9.27	8.42	9.84	10.33	10.74
PBT / Share (Rs.)	7.38	-11.84	8.65	9.00	9.03
Net Profit / Share (Rs.)	6.57	-13.14	7.30	7.38	7.32
NP After MI And SOA / Share (Rs.)	6.57	-13.14	7.30	7.38	7.32
PBDIT Margin (%)	10.81	10.43	12.57	14.50	15.09
PBIT Margin (%)	9.18	8.85	11.27	12.83	13.43
PBT Margin (%)	7.31	-12.45	9.90	11.18	11.29
Net Profit Margin (%)	6.51	-13.82	8.35	9.16	9.15
NP After MI And SOA Margin (%)	6.51	-13.82	8.35	9.16	9.15
Return on Networth / Equity (%)	14.43	-33.99	14.71	16.91	16.94
Return on Capital Employeed (%)	18.30	18.67	18.42	21.29	20.42
Return On Assets (%)	9.69	-21.25	10.48	11.25	9.81
Long Term Debt / Equity (X)	0.07	0.11	0.02	0.05	0.06
Total Debt / Equity (X)	0.29	0.36	0.21	0.20	0.22
Asset Turnover Ratio (%)	1.56	1.45	0.29	0.25	0.31
Current Ratio (X)	3.36	3.23	2.96	2.51	1.98
Quick Ratio (X)	3.36	3.23	2.96	2.51	1.98
Inventory Turnover Ratio (X)	0.00	54.09	0.00	0.00	0.00
Dividend Payout Ratio (NP) (%)	0.00	0.00	3.42	0.00	0.00
Dividend Payout Ratio (CP) (%)	0.00	0.00	2.96	0.00	0.00
Earning Retention Ratio (%)	0.00	0.00	96.58	0.00	0.00
Cash Earning Retention Ratio (%)	0.00	0.00	97.04	0.00	0.00
Interest Coverage Ratio (X)	5.79	8.37	9.17	8.75	7.08
Interest Coverage Ratio (Post Tax) (X)	4.49	6.01	7.10	6.53	5.29
Enterprise Value (Cr.)	1050.06	529.83	891.73	742.20	134.05
EV / Net Operating Revenue (X)	1.07	0.57	1.06	0.95	0.17
EV / EBITDA (X)	9.88	5.54	8.42	6.60	1.15
MarketCap / Net Operating Revenue (X)	0.96	0.46	0.96	0.89	0.08
Retention Ratios (%)	0.00	0.00	96.57	0.00	0.00
Price / BV (X)	2.14	1.14	1.70	1.65	0.16
Price / Net Operating Revenue (X)	0.96	0.46	0.96	0.89	0.08
EarningsYield	0.06	-0.29	0.08	0.10	1.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 22, 2024 is: 166.88

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 December 22, 2024, is Undervalued by 9.07% compared to the current share price 153.00

Intrinsic Value of as of December 22, 2024 is: 165.41

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 December 22, 2024, is Undervalued by 8.11% compared to the current share price 153.00

Last 5 Year EPS CAGR: -0.88%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a high average ROCE of 23.67%, which is a positive sign. The company has higher reserves (243.54 cr) compared to borrowings (106.15 cr), indicating strong financial stability. The company has shown consistent growth in sales (636.77 cr) and profit (48.85 cr) over the years.	The stock has a high average Working Capital Days of 106.00, which may not be favorable. The stock has a high average Cash Conversion Cycle of 72.00, which may not be favorable.

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 :
1. Net Profit Margin: 6.51%
  - 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: 18.3% (Industry Average ROCE: 20.17%)
  - 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%: 14.43% (Industry Average ROE: 16.6%)
  - 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): 4.49
  - 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: 3.36
  - 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: 20.8 (Industry average Stock P/E: 22.74)
  - 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: 0.29
  - 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

Kellton Tech Solutions Ltd. is a Public Limited Listed company incorporated on 31/12/1993 and has its registered office in the State of Telangana, India. Company’s Corporate Identification Number(CIN) is L72200TG1993PLC016819 and registration number is 016819. Currently Company is involved in the business activities of Computer programming, consultancy and related activities. Company’s Total Operating Revenue is Rs. 123.18 Cr. and Equity Capital is Rs. 48.19 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
IT Consulting & Software	Plot No. 1367, Hyderabad Telangana 500033	compliance@kelltontech.com http://www.kelltontech.com

Management
Name	Position Held
Mr. Niranjan Chintam	Chairman & Wholetime Director
Mr. Krishna Chintam	Managing Director
Mr. Karanjit Singh	Whole Time Director
Mr. Srinivas Potluri	Non Executive Director
Mr. Satya Prasad Sayala	Ind. Non-Executive Director
Mr. Srinivasa Vijay Kumar Appana	Ind. Non-Executive Director
Mr. Brij Mohan Venkata Mandala	Ind. Non-Executive Director
Ms. Geeta Goti	Ind. Non-Executive Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 22 December 2024 is ₹166.88, which is 9.07% higher than the current market price of ₹153.00. The stock has a market capitalization of 1,491 Cr. and recorded a high/low of 184/85.0 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹439 Cr and total liabilities of ₹705 Cr.

What is the Market Cap of ?

The Market Cap of is 1,491 Cr..

What is the current Stock Price of as on 22 December 2024?

The current stock price of as on 22 December 2024 is 153.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 184/85.0.

What is the Stock P/E of ?

The Stock P/E of is 20.8.

What is the Book Value of ?

The Book Value of is 50.1.

What is the Dividend Yield of ?

The Dividend Yield of is 0.00 %.

What is the ROCE of ?

The ROCE of is 15.9 %.

What is the ROE of ?

The ROE of is 15.7 %.

What is the Face Value of ?

The Face Value of is 5.00.