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Last Updated on: 19 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Sasken Technologies Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 18, 2024, 4:55 pm

Market Cap 3,135 Cr.
Current Price 2,081
High / Low2,125/1,131
Stock P/E48.5
Book Value 521
Dividend Yield1.20 %
ROCE12.0 %
ROE10.2 %
Face Value 10.0
PEG Ratio-746.21

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

View Share Price Target for Sasken Technologies Ltd

Competitors of Sasken Technologies Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IDream Film Infrastructure Company Ltd 1.41 Cr. 93.899.0/85.0 2950.00 %%% 10.0
IB Infotech Enterprises Ltd 25.4 Cr. 198245/11033.4 16.80.50 %69.9 %50.5 % 10.0
Hit Kit Global Solutions Ltd 6.54 Cr. 1.411.41/0.5820.4 2.080.00 %1.92 %1.94 % 2.00
Globalspace Technologies Ltd 61.6 Cr. 17.927.0/16.2187 11.20.00 %%% 10.0
First Fintec Ltd 8.92 Cr. 8.5810.9/4.51 10.20.00 %2.41 %1.77 % 10.0
Industry Average39,204.17 Cr694.8889.78121.930.66%18.15%18.84%6.90

All Competitor Stocks of Sasken Technologies Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales1111101091061091011201231039810396109
Expenses757874757874909489898892107
Operating Profit36323432312730291491552
OPM %33%29%32%30%28%27%25%24%14%9%14%5%2%
Other Income6111285-61611822101821
Interest00000-00000000
Depreciation2222222222222
Profit before tax39414538342044392129232121
Tax %26%18%17%20%21%25%18%19%18%11%21%16%18%
Net Profit29343730271536311726181817
EPS in Rs19.3322.5924.7819.9917.8610.1223.8720.7611.3417.0812.0111.7911.40

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales475458428483467503504492445434447406
Expenses433405745436417434433404314305346376
Operating Profit4253-317475069718813112910131
OPM %9%12%-74%10%11%14%14%18%29%30%23%8%
Other Income18325442495336463629353071
Interest000000010000
Depreciation19131177671110777
Profit before tax40722162909610011111214915812494
Tax %20%29%45%29%12%17%18%30%23%19%20%16%
Net Profit3251120206858290791151289979
EPS in Rs15.1824.1956.01116.4249.5048.1752.8552.3876.1185.2166.0952.21
Dividend Payout %46%132%48%27%14%21%24%105%33%29%38%48%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)59.38%135.29%71.67%-58.74%-3.53%9.76%-12.22%45.57%11.30%-22.66%-20.20%
Change in YoY Net Profit Growth (%)0.00%75.92%-63.63%-130.40%55.21%13.29%-21.98%57.79%-34.27%-33.96%2.45%

Sasken Technologies Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:-1%
5 Years:-4%
3 Years:-3%
TTM:9%
Compounded Profit Growth
10 Years:5%
5 Years:-3%
3 Years:-12%
TTM:-30%
Stock Price CAGR
10 Years:24%
5 Years:27%
3 Years:19%
1 Year:73%
Return on Equity
10 Years:12%
5 Years:15%
3 Years:15%
Last Year:10%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:43 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital21212118171717151515151515
Reserves401383426481544604681460550638704754771
Borrowings11110004003828
Other Liabilities809311113710111396144104117100149148
Total Liabilities504498559638662734794623669771823926963
Fixed Assets1231274240383740443434394879
CWIP00000010000100
Investments139134195351374459510340412539582632634
Other Assets242237321246250237243239222198202236249
Total Assets504498559638662734794623669771823926963

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +45641912492879201121191077159
Cash from Investing Activity +509-137-7918-54-28171-98-70-276
Cash from Financing Activity +-86-72-65-174-31-18-18-282-17-39-37-39
Net Cash Flow91-11-4156-2615-2826

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow41.0052.00-318.0046.0050.0069.0071.0084.00131.00129.0098.0023.00

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 Days697460736157606955695959
Inventory Days
Days Payable
Cash Conversion Cycle697460736157606955695959
Working Capital Days48416732145612191119-4
ROCE %9%16%-9%11%13%17%17%19%28%25%17%12%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters43.04%43.05%43.13%43.38%43.38%43.38%43.38%43.38%43.44%43.25%43.25%43.10%
FIIs18.86%18.98%18.96%18.81%18.61%18.61%18.55%18.62%18.52%18.37%18.38%18.27%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.33%1.09%1.10%1.21%1.31%
Government0.00%0.00%0.00%0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.05%
Public38.01%37.88%37.82%37.67%37.85%37.94%38.02%37.61%36.89%37.23%37.11%37.25%
Others0.09%0.09%0.09%0.09%0.09%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
No. of Shareholders28,15630,20830,75730,09629,47728,94428,33628,37727,05726,12825,04324,985

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Teck Fund98,2185.5611.3198,2182024-11-120%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)52.2966.1485.3176.2648.57
Diluted EPS (Rs.)51.5965.5885.2276.2648.57
Cash EPS (Rs.)57.1570.5889.5382.8759.79
Book Value[Excl.RevalReserv]/Share (Rs.)520.15477.93434.22375.09315.90
Book Value[Incl.RevalReserv]/Share (Rs.)520.15477.93434.22375.09315.90
Revenue From Operations / Share (Rs.)269.55296.98288.29295.55327.04
PBDIT / Share (Rs.)67.3686.72109.24106.4082.27
PBIT / Share (Rs.)62.4382.23104.9199.6474.86
PBT / Share (Rs.)62.2182.14104.8899.3274.39
Net Profit / Share (Rs.)52.2266.0985.2176.1152.37
NP After MI And SOA / Share (Rs.)52.2166.0985.2176.1152.37
PBDIT Margin (%)24.9829.2037.8936.0025.15
PBIT Margin (%)23.1527.6836.3833.7122.89
PBT Margin (%)23.0727.6536.3733.6022.74
Net Profit Margin (%)19.3722.2529.5525.7516.01
NP After MI And SOA Margin (%)19.3622.2529.5525.7516.01
Return on Networth / Equity (%)10.2313.8219.6220.2816.57
Return on Capital Employeed (%)11.7216.9823.8726.2722.88
Return On Assets (%)8.5012.0816.6217.1312.65
Asset Turnover Ratio (%)0.460.440.530.610.59
Current Ratio (X)1.572.261.632.502.08
Quick Ratio (X)1.572.261.632.502.08
Dividend Payout Ratio (NP) (%)47.8037.8131.6713.10144.69
Dividend Payout Ratio (CP) (%)43.6735.4030.1412.03126.74
Earning Retention Ratio (%)52.2062.1968.3386.90-44.69
Cash Earning Retention Ratio (%)56.3364.6069.8687.97-26.74
Interest Coverage Ratio (X)309.16976.283637.36342.40175.64
Interest Coverage Ratio (Post Tax) (X)240.69744.992838.30245.91112.81
Enterprise Value (Cr.)2260.301154.141356.851261.54551.58
EV / Net Operating Revenue (X)5.562.583.132.841.12
EV / EBITDA (X)22.268.848.257.884.45
MarketCap / Net Operating Revenue (X)5.662.643.172.951.16
Retention Ratios (%)52.1962.1868.3286.89-44.69
Price / BV (X)2.991.642.112.331.20
Price / Net Operating Revenue (X)5.662.643.172.951.16
EarningsYield0.030.080.090.080.13

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Sasken Technologies Ltd as of November 19, 2024 is: 2,608.32

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 November 19, 2024, Sasken Technologies Ltd is Undervalued by 25.34% compared to the current share price 2,081.00

Intrinsic Value of Sasken Technologies Ltd as of November 19, 2024 is: 2,606.62

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 November 19, 2024, Sasken Technologies Ltd is Undervalued by 25.26% compared to the current share price 2,081.00

Last 5 Year EPS CAGR: -0.06%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 21.75, which is a positive sign.
  2. The company has higher reserves (569.00 cr) compared to borrowings (3.62 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (461.83 cr) and profit (130.17 cr) over the years.
  1. The stock has a low average ROCE of 14.58%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 63.75, 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 Sasken Technologies Ltd:
    1. Net Profit Margin: 19.37%
      • 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: 11.72% (Industry Average ROCE: 18.15%)
      • 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%: 10.23% (Industry Average ROE: 18.84%)
      • 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): 240.69
      • 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: 1.57
      • 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: 48.5 (Industry average Stock P/E: 89.78)
      • 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

Sasken Technologies Ltd. is a Public Limited Listed company incorporated on 13/02/1989 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L72100KA1989PLC014226 and registration number is 014226. Currently company belongs to the Industry of IT Consulting & Software. Company’s Total Operating Revenue is Rs. 385.89 Cr. and Equity Capital is Rs. 15.05 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwareNo. 139/25, Domlur Ring Road, Amarjyothi Layout, Bengaluru Karnataka 560071info@sasken.com
http://www.sasken.com
Management
NamePosition Held
Mr. Rajiv C ModyChairman & M.D & CEO
Mr. Bharat V PatelIndependent Director
Ms. Madhu KhatriIndependent Director
Mr. Raja Ramana MachaIndependent Director
Mr. Som MittalIndependent Director
Mr. Sunil SachanIndependent Director
Mr. Sunirmal TalukdarIndependent Director
Mr. Pranabh D ModyDirector
Dr. G VenkateshDirector

FAQ

What is the latest intrinsic value of Sasken Technologies Ltd?

The latest intrinsic value of Sasken Technologies Ltd as on 18 November 2024 is ₹2608.32, which is 25.34% higher than the current market price of ₹2,081.00.

What is the Market Cap of Sasken Technologies Ltd?

The Market Cap of Sasken Technologies Ltd is 3,135 Cr..

What is the current Stock Price of Sasken Technologies Ltd as on 18 November 2024?

The current stock price of Sasken Technologies Ltd as on 18 November 2024 is ₹2,081.

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

In FY 2024, the High / Low of Sasken Technologies Ltd stocks is 2,125/1,131.

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

The Stock P/E of Sasken Technologies Ltd is 48.5.

What is the Book Value of Sasken Technologies Ltd?

The Book Value of Sasken Technologies Ltd is 521.

What is the Dividend Yield of Sasken Technologies Ltd?

The Dividend Yield of Sasken Technologies Ltd is 1.20 %.

What is the ROCE of Sasken Technologies Ltd?

The ROCE of Sasken Technologies Ltd is 12.0 %.

What is the ROE of Sasken Technologies Ltd?

The ROE of Sasken Technologies Ltd is 10.2 %.

What is the Face Value of Sasken Technologies Ltd?

The Face Value of Sasken 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 Sasken 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