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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Palred Technologies Ltd

Basic Stock Data

Last Updated: June 20, 2024, 10:32 pm

Market Cap 144 Cr.
Current Price 118
High / Low230/99.0
Stock P/E
Book Value 46.0
Dividend Yield0.00 %
ROCE1.05 %
ROE5.89 %
Face Value 10.0
PEG Ratio0.00

Competitors of Palred Technologies Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Cranes Software International Ltd 65.1 Cr. 5.537.09/2.6210.1 75.80.00 %%% 2.00
Sonata Software Ltd 15,829 Cr. 564870/46938.6 50.21.40 %35.5 %30.3 % 1.00
Inspirisys Solutions Ltd 374 Cr. 94.4128/57.124.2 7.390.00 %29.0 %148 % 10.0
FCS Software Solutions Ltd 663 Cr. 3.886.69/2.08121 2.510.00 %3.13 %1.39 % 1.00
Vakrangee Ltd 2,560 Cr. 24.232.2/14.6648 1.530.20 %7.32 %2.76 % 1.00
Industry Average37,587.93 Cr720.7364.94125.740.72%20.51%19.97%6.76

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales31.4331.6226.9747.2029.5623.8636.4948.9430.8631.7433.0541.6818.92
Expenses29.5331.0325.9645.8030.1624.5235.4647.2831.0131.9033.4740.0521.09
Operating Profit1.900.591.011.40-0.60-0.661.031.66-0.15-0.16-0.421.63-2.17
OPM %6.05%1.87%3.74%2.97%-2.03%-2.77%2.82%3.39%-0.49%-0.50%-1.27%3.91%-11.47%
Other Income0.300.640.210.360.180.300.730.510.740.691.310.760.98
Interest0.790.780.720.920.900.690.860.831.221.511.641.741.48
Depreciation0.170.230.120.200.170.140.190.170.220.480.420.400.45
Profit before tax1.240.220.380.64-1.49-1.190.711.17-0.85-1.46-1.170.25-3.12
Tax %0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Net Profit1.240.230.370.64-1.48-1.190.711.17-0.85-1.46-1.180.26-3.12
EPS in Rs1.000.050.250.38-1.38-1.010.590.92-0.46-0.82-0.640.22-1.86

Last Updated: June 10, 2024, 5:06 am

Quarterly Chart

Profit & Loss - Annual Report

MonthMar 2011Mar 2012Mar 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales12212613273841513446117128148125
Expenses113112111126253594450112126145127
Operating Profit91521-5-24-12-8-10-4513-1
OPM %7%12%16%-73%-62%-30%-16%-30%-10%4%1%2%-1%
Other Income-2-49-17313-022134
Interest2220000013456
Depreciation2220111111112
Profit before tax3-39161-21-12-6-11-53-2-0-6
Tax %7%-11%28%1%-0%-6%0%0%0%0%0%0%
Net Profit3-43121-22-13-6-11-53-2-0-6
EPS in Rs1.58-21.875.910.64-20.40-13.72-5.62-10.58-4.792.58-1.76-0.03-3.10
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2011-20122012-20132015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-1533.33%127.91%-2300.00%40.91%53.85%-83.33%54.55%160.00%-166.67%100.00%
Change in YoY Net Profit Growth (%)0.00%1661.24%-2427.91%2340.91%12.94%-137.18%137.88%105.45%-326.67%266.67%

Growth

Compounded Sales Growth
10 Years:%
5 Years:28%
3 Years:0%
TTM:-22%
Compounded Profit Growth
10 Years:%
5 Years:10%
3 Years:%
TTM:-8450%
Stock Price CAGR
10 Years:14%
5 Years:35%
3 Years:-4%
1 Year:-6%
Return on Equity
10 Years:%
5 Years:-4%
3 Years:-4%
Last Year:-6%

Last Updated: June 16, 2024, 5:00 pm

Balance Sheet

MonthMar 2011Mar 2012Mar 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital191919208810101010101212
Reserves13910311670332233221720264847
Borrowings313026000001430346070
Other Liabilities3743315127957861013
Total Liabilities2261951929553375236486776130142
Fixed Assets1731331333564123276
CWIP0000000000000
Investments0218034208000000
Other Assets5360581214114135466573123136
Total Assets2261951929553375236486776130142

Reserves and Borrowings Chart

Palred Technologies Ltd Cash Flow

MonthMar 2011Mar 2012Mar 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 41110-8-17-16-9-14-15-13-3-18
Cash from Investing Activity -15-4-094814-11154-3-5-25
Cash from Financing Activity 5-5-60-30022-01113743
Net Cash Flow-52421-1210-3-10

Free Cash Flow

MonthMar 2011Mar 2012Mar 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-22.00-15.00-5.00-5.00-24.00-12.00-8.00-10.00-18.00-25.00-33.00-57.00

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 2011Mar 2012Mar 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days74725300001644543973
Inventory Days69714391108971466687103
Days Payable1125870561434821
Cash Conversion Cycle74725358585225298156111124175
Working Capital Days-12-50-31182-3811972148118121155
ROCE %5%8%13%-31%-31%-17%-23%-9%12%3%4%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters37.78%37.78%37.78%37.78%37.78%37.78%37.78%34.80%30.06%30.06%30.06%30.06%
FIIs7.21%7.21%7.21%7.21%7.21%7.21%7.21%6.64%5.94%5.94%5.94%5.87%
Public55.01%55.01%55.01%55.01%55.01%55.01%55.01%58.55%64.00%64.00%64.00%64.06%
No. of Shareholders12,59012,66012,80514,81014,40414,16714,51314,36314,17214,42014,37914,944

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.)-2.80-0.03-1.762.58-4.78
Diluted EPS (Rs.)-2.80-0.03-1.762.58-4.78
Cash EPS (Rs.)-2.810.50-1.064.25-3.96
Book Value[Excl.RevalReserv]/Share (Rs.)46.3650.5739.3832.6429.32
Book Value[Incl.RevalReserv]/Share (Rs.)46.3650.5739.3832.6429.32
Revenue From Operations / Share (Rs.)94.82121.00131.09120.2246.81
PBDIT / Share (Rs.)2.414.122.267.06-2.99
PBIT / Share (Rs.)1.063.251.616.33-3.76
PBT / Share (Rs.)-4.17-0.36-1.713.51-4.73
Net Profit / Share (Rs.)-4.17-0.36-1.713.51-4.73
NP After MI And SOA / Share (Rs.)-2.80-0.03-1.762.58-4.78
PBDIT Margin (%)2.543.401.725.87-6.38
PBIT Margin (%)1.112.681.235.26-8.04
PBT Margin (%)-4.39-0.30-1.302.92-10.11
Net Profit Margin (%)-4.39-0.30-1.302.92-10.11
NP After MI And SOA Margin (%)-2.95-0.02-1.342.14-10.22
Return on Networth / Equity (%)-6.08-0.06-4.788.57-17.25
Return on Capital Employeed (%)2.175.913.8518.95-12.61
Return On Assets (%)-2.64-0.02-2.263.72-9.66
Total Debt / Equity (X)1.130.910.870.950.44
Asset Turnover Ratio (%)0.890.020.020.040.02
Current Ratio (X)1.721.891.991.752.22
Quick Ratio (X)1.251.421.361.321.60
Inventory Turnover Ratio (X)1.660.000.000.000.00
Interest Coverage Ratio (X)0.461.140.672.51-3.08
Interest Coverage Ratio (Post Tax) (X)0.200.890.482.25-3.88
Enterprise Value (Cr.)156.05176.12156.46104.004.37
EV / Net Operating Revenue (X)1.351.191.230.880.09
EV / EBITDA (X)52.8734.9371.1715.14-1.50
MarketCap / Net Operating Revenue (X)1.251.131.150.780.20
Price / BV (X)2.572.804.093.140.34
Price / Net Operating Revenue (X)1.251.131.150.780.20
EarningsYield-0.020.00-0.010.02-0.50

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 41.45

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.

Overvalued: 64.87% compared to the current price 118

Default values used*: Deafault value of 15 for Stock P/E is used

Intrinsic Value: 50.53

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.

Overvalued: 57.18% compared to the current price ₹118

Default values used*: Deafault value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: 21.89%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (53.54 cr) compared to borrowings (22.69 cr), indicating strong financial stability.
  1. The stock has a low average ROCE of -5.50%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 57.08, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 133.92, which may not be favorable.
  4. The company has not shown consistent growth in sales (85.77) and profit (-6.08).

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 Palred Technologies Ltd:
    1. Net Profit Margin: -4.39%
      • 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: 2.17% (Industry Average ROCE: %)
      • 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%: -6.08% (Industry Average ROE: %)
      • 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): 0.20
      • 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: 1.25
      • 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: (Industry average Stock P/E: )
      • 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: 1.13
      • 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

Palred Technologies Ltd. is a Public Limited Listed company incorporated on 24/12/1999 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L72200TG1999PLC033131 and registration number is 033131. Currently company belongs to the Industry of IT Consulting & Software. Company’s Total Operating Revenue is Rs. 1.50 Cr. and Equity Capital is Rs. 9.73 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwarePlot No.2, 8-2-703/2/B, Hyderabad Telangana 500034company@palred.com
http://www.palred.com
Management
NamePosition Held
Mrs. Palem Supriya ReddyChairman & Managing Director
Mr. Srikar ReddyNon Executive Director
Ms. Stuthi ReddyNon Executive Director
Mr. S Vijaya SaradhiIndependent Director
Mr. Atul SharmaIndependent Director
Ms. AakankshaIndependent Director

FAQ

What is the latest fair value of Palred Technologies Ltd?

The latest fair value of Palred Technologies Ltd is ₹41.45.

What is the Market Cap of Palred Technologies Ltd?

The Market Cap of Palred Technologies Ltd is 144 Cr..

What is the current Stock Price of Palred Technologies Ltd as on 20 June 2024?

The current stock price of Palred Technologies Ltd as on 20 June 2024 is ₹118.

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

In FY 2024, the High / Low of Palred Technologies Ltd stocks is 230/99.0.

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

The Stock P/E of Palred Technologies Ltd is .

What is the Book Value of Palred Technologies Ltd?

The Book Value of Palred Technologies Ltd is 46.0.

What is the Dividend Yield of Palred Technologies Ltd?

The Dividend Yield of Palred Technologies Ltd is 0.00 %.

What is the ROCE of Palred Technologies Ltd?

The ROCE of Palred Technologies Ltd is 1.05 %.

What is the ROE of Palred Technologies Ltd?

The ROE of Palred Technologies Ltd is 5.89 %.

What is the Face Value of Palred Technologies Ltd?

The Face Value of Palred 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 Palred 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