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Last Updated on: 04 March, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Onward Technologies Ltd

About the Company - Onward Technologies Ltd

Onward Technologies Ltd. is a Public Limited Listed company incorporated on 18/07/1991 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L28920MH1991PLC062542 and registration number is 062542. Currently Company is involved in the business activities of Research and experimental development on social sciences and humanities. Company’s Total Operating Revenue is Rs. 234.40 Cr. and Equity Capital is Rs. 22.02 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwareSterling Centre, 2nd Floor, Dr. A B Road, Mumbai Maharashtra 400018info@onwardgroup.com
http://www.onwardgroup.com
Management
NamePosition Held
Mr. Harish MehtaExecutive Chairman
Mr. Jigar MehtaManaging Director
Mr. Jay SonawalaInd. Non-Executive Director
Mr. Harsha RaghavanNon Exe.Non Ind.Director
Ms. Niranjani ChandramouliInd. Non-Executive Director
Mr. Jai Shishir DiwanjiInd. Non-Executive Director
Mr. Dhanpal Arvind JhaveriInd. Non-Executive Director

Onward Technologies Ltd. Share Price Update

Share PriceValue
Today₹553.05
Previous Day₹557.85

Basic Stock Data of Onward Technologies Ltd

Market Cap 1,216 Cr.
Current Price 540
High / Low740/268
Stock P/E35.3
Book Value 84.6
Dividend Yield0.55 %
ROCE10.4 %
ROE6.67 %
Face Value 10.0

Data Source: screener.in

Competitors of Onward Technologies Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Tanla Platforms Ltd 13,172 Cr. 9801,318/49324.5 1301.02 %37.9 %31.2 % 1.00
3i Infotech Ltd 882 Cr. 52.263.9/25.9 25.20.00 %2.59 %0.45 % 10.0
63 Moons Technologies Ltd 2,206 Cr. 479691/16211.2 7040.42 %1.99 %1.43 % 2.00
Avance Technologies Ltd 309 Cr. 1.561.56/0.04114 1.880.00 %%% 1.00
Happiest Minds Technologies Ltd 12,920 Cr. 8481,023/76353.4 90.40.63 %27.4 %28.9 % 2.00
Industry Average5,897.80 Cr472.1540.62190.300.41%13.98%12.40%3.20

Onward Technologies Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales60.1857.8366.3369.6072.9477.2687.4793.67110.11115.78121.37119.62120.24
Expenses54.5053.8562.4971.4765.6867.5781.1390.75106.94109.23107.30105.14105.23
Operating Profit5.683.983.84-1.877.269.696.342.923.176.5514.0714.4815.01
OPM %9.44%6.88%5.79%-2.69%9.95%12.54%7.25%3.12%2.88%5.66%11.59%12.10%12.48%
Other Income0.822.172.0215.544.110.281.602.101.011.121.742.641.43
Interest0.570.640.420.230.240.260.290.410.430.430.390.360.33
Depreciation2.682.402.492.422.522.462.703.073.263.393.253.263.28
Profit before tax3.253.112.9511.028.617.254.951.540.493.8512.1713.5012.83
Tax %24.92%24.44%26.78%10.25%35.08%31.31%34.95%20.78%-18.37%36.10%40.51%19.41%25.33%
Net Profit2.432.352.179.895.594.983.221.210.582.467.2410.889.57
EPS in Rs1.501.441.335.653.182.271.460.550.261.113.254.864.27

Onward Technologies Ltd Quarterly Chart

Onward Technologies Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales131146167189198224244261272240307441477
Expenses120133158177184212233239248223286414427
Operating Profit1114913141111222317222750
OPM %8%9%5%7%7%5%5%9%9%7%7%6%11%
Other Income22112351152157
Interest3333433332122
Depreciation544544561110101313
Profit before tax5835878151010321842
Tax %-24%32%97%37%61%38%11%33%35%25%26%36%
Net Profit75033471067241130
EPS in Rs4.833.870.062.002.142.704.326.413.894.4910.755.1513.49
Dividend Payout %0%0%0%0%47%37%23%23%39%67%28%58%

Onward Technologies Ltd Profit & Loss Yearly Chart

Rolta India Ltd Growth

Compounded Sales Growth
10 Years:12%
5 Years:13%
3 Years:18%
TTM:17%
Compounded Profit Growth
10 Years:8%
5 Years:11%
3 Years:22%
TTM:362%
Stock Price CAGR
10 Years:27%
5 Years:55%
3 Years:77%
1 Year:92%
Return on Equity
10 Years:12%
5 Years:12%
3 Years:12%
Last Year:7%

Onward Technologies Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital14141415151516161616222222
Reserves491217212734455258141152168
Borrowings32353729232523183525191715
Other Liabilities21212327312228273338455046
Total Liabilities708086889190100106135138227240252
Fixed Assets13121212111816152830575450
CWIP0000000000000
Investments0000000000000
Other Assets5768747680728591107108170187201
Total Assets708086889190100106135138227240252

Onward Technologies Ltd Reserves and Borrowings Chart

Onward Technologies Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 32315101416112933-46
Cash from Investing Activity -2-3-3-4-1-11-5-5-5-10-326
Cash from Financing Activity -13-1-11-9-0-10-9-10-1257-14
Net Cash Flow11-10032-3131121-2

Onward Technologies Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days959186757179686867627991
Inventory Days
Days Payable
Cash Conversion Cycle959186757179686867627991
Working Capital Days707556425748465541425660
ROCE %17%20%10%14%19%15%15%24%14%12%23%10%

Onward Technologies Ltd Financial Efficiency Indicators Chart

Onward Technologies Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters61.71%57.64%57.33%45.97%45.79%45.69%45.51%45.43%45.21%45.07%44.96%38.15%
FIIs0.00%0.00%0.01%0.22%0.03%0.00%24.38%0.01%0.00%0.06%0.09%2.14%
DIIs0.03%0.63%0.72%0.54%0.25%0.24%0.23%0.31%0.55%0.87%0.84%6.15%
Public38.27%41.73%41.95%53.28%53.93%54.07%29.87%54.25%54.24%54.02%54.12%53.56%
No. of Shareholders10,89113,41911,79511,24211,57111,55211,62310,91110,68112,13314,27815,365

Onward Technologies Ltd Shareholding Pattern Chart

No. of Onward Technologies Ltd Shareholders

This stock is not held by any mutual fund

Onward Technologies Ltd ROCE Trend

Onward Technologies Ltd EPS Trend

Onward Technologies Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)5.1712.624.523.906.45
Diluted EPS (Rs.)5.0512.174.353.766.17
Cash EPS (Rs.)10.9715.3410.8810.959.99
Book Value[Excl.RevalReserv]/Share (Rs.)77.9474.0945.5742.3938.56
Book Value[Incl.RevalReserv]/Share (Rs.)77.9474.0945.5742.3938.56
Revenue From Operations / Share (Rs.)197.68139.54147.11169.26165.15
PBDIT / Share (Rs.)14.6519.5013.8215.2314.93
PBIT / Share (Rs.)8.8314.917.438.1711.35
PBT / Share (Rs.)8.0814.456.006.019.62
Net Profit / Share (Rs.)5.1510.764.493.896.41
NP After MI And SOA / Share (Rs.)5.1510.764.493.896.41
PBDIT Margin (%)7.4113.979.398.999.04
PBIT Margin (%)4.4610.685.044.826.87
PBT Margin (%)4.0810.354.083.555.82
Net Profit Margin (%)2.607.703.052.293.88
NP After MI And SOA Margin (%)2.607.703.052.293.88
Return on Networth / Equity (%)6.6014.519.859.1716.62
Return on Capital Employeed (%)10.5218.1114.2215.9627.36
Return On Assets (%)4.7310.325.324.589.50
Long Term Debt / Equity (X)0.000.000.010.000.01
Total Debt / Equity (X)0.000.000.200.260.26
Asset Turnover Ratio (%)1.411.331.361.611.19
Current Ratio (X)3.013.071.731.531.70
Quick Ratio (X)3.013.071.731.531.70
Dividend Payout Ratio (NP) (%)57.8822.1533.1438.4215.48
Dividend Payout Ratio (CP) (%)27.1615.5313.6713.649.93
Earning Retention Ratio (%)42.1277.8566.8661.5884.52
Cash Earning Retention Ratio (%)72.8484.4786.3386.3690.07
Interest Coverage Ratio (X)19.6442.709.727.058.61
Interest Coverage Ratio (Post Tax) (X)7.9024.554.162.804.70
Enterprise Value (Cr.)595.40733.46170.7366.50119.27
EV / Net Operating Revenue (X)1.352.390.710.240.45
EV / EBITDA (X)18.2217.087.562.725.05
MarketCap / Net Operating Revenue (X)1.462.580.760.250.41
Retention Ratios (%)42.1177.8466.8561.5784.51
Price / BV (X)3.704.862.481.041.78
Price / Net Operating Revenue (X)1.462.580.760.250.41
EarningsYield0.010.020.030.080.09

Onward Technologies Ltd Profitability Ratios (%)

Onward Technologies Ltd Liquidity Ratios

Onward Technologies Ltd Liquidity Ratios (%)

Onward Technologies Ltd Interest Coverage Ratios (%)

Onward Technologies Ltd Valuation Ratios

Fair Value / Intrinsic Value of Onward Technologies Ltd

Fair Value: ₹200.29

The stock is overvalued by 62.91% compared to the current price ₹540

*Investments are subject to market risks

Strength and Weakness of Onward Technologies Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 16.08%, which is a positive sign.
  2. The company has higher reserves (56.92 cr) compared to borrowings (25.62 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (253.62 cr) and profit (13.15 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 10.14 and average Dividend Yield of 6.37%.
  2. The stock has a high average Working Capital Days of 54.00, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 77.67, which may not be favorable.

Should I Buy Onward Technologies Ltd Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Onward Technologies Ltd:
    1. Net Profit Margin: 2.60%
      • 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: 10.52% (Industry Average ROCE: 12.5%)
      • 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. Interest Coverage Ratio (Post Tax): 7.90
      • 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.
    4. Quick Ratio: 3.01
      • 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.
    5. ✗ Stock P/E: 37.5 (Industry average Stock P/E: 17.08)
      • 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.
    6. ✓ Total Debt / Equity: 0.00
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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 Onward 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