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Last Updated on: 23 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sasken Technologies Ltd

Basic Stock Data

Last Updated: June 22, 2024, 10:26 pm

Market Cap 2,362 Cr.
Current Price 1,566
High / Low1,834/861
Stock P/E30.0
Book Value 510
Dividend Yield1.60 %
ROCE12.4 %
ROE10.6 %
Face Value 10.0
PEG Ratio-461.58

Competitors of Sasken Technologies Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Subex Ltd 1,754 Cr. 31.145.8/22.4 5.920.00 %5.35 %13.5 % 5.00
Sonata Software Ltd 15,829 Cr. 564870/46938.6 50.21.40 %35.5 %30.3 % 1.00
RS Software (India) Ltd 566 Cr. 220299/34.031.3 18.90.00 %44.4 %45.7 % 5.00
Brightcom Group Ltd 1,893 Cr. 9.3833.1/8.591.34 34.70.00 %30.9 %22.3 % 2.00
Datasoft Applications Software (India) Ltd 6.22 Cr. 54.954.9/5.3736.6 2.210.00 %42.1 %103 % 10.0
Industry Average37,692.70 Cr707.2865.11120.590.71%20.38%19.91%6.76

Nucleus Software Exports Ltd Quarterly Results

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: June 9, 2024, 10:19 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:02 am

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%

Growth

Compounded Sales Growth
10 Years:-1%
5 Years:-2%
3 Years:-3%
TTM:-12%
Compounded Profit Growth
10 Years:12%
5 Years:3%
3 Years:7%
TTM:-28%
Stock Price CAGR
10 Years:23%
5 Years:16%
3 Years:19%
1 Year:88%
Return on Equity
10 Years:13%
5 Years:16%
3 Years:18%
Last Year:14%

Last Updated: May 1, 2024, 11:17 am

Sasken Technologies Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital26212121181717171515151515
Reserves433401383426481544604681460550638704736
Borrowings4111100040034
Other Liabilities9580931111371011139614410411710089
Total Liabilities558504498559638662734794623669771823844
Fixed Assets13612312742403837404434343937
CWIP0000000100000
Investments167139134195351374459510340412539582614
Other Assets256242237321246250237243239222198202194
Total Assets558504498559638662734794623669771823844

Reserves and Borrowings Chart

Sasken Technologies Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 53456419124928792011211910771
Cash from Investing Activity -20509-137-7918-54-28171-98-70-27
Cash from Financing Activity -39-86-72-65-174-31-18-18-282-17-39-37
Net Cash Flow-691-11-4156-2615-28

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 Days4841673214561219111915
ROCE %9%16%-9%11%13%17%17%19%28%25%17%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters40.47%40.48%40.48%43.01%43.04%43.05%43.13%43.38%43.38%43.38%43.38%43.38%
FIIs20.79%21.03%20.92%20.75%18.86%18.98%18.96%18.81%18.61%18.61%18.55%18.62%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.33%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.05%0.05%0.05%0.05%0.05%
Public38.53%38.27%38.51%36.15%38.01%37.88%37.82%37.67%37.85%37.94%38.02%37.61%
Others0.21%0.21%0.09%0.09%0.09%0.09%0.09%0.09%0.09%0.00%0.00%0.00%
No. of Shareholders22,30622,13222,69926,82928,15630,20830,75730,09629,47728,94428,33628,377

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Teck Fund98,2185.5611.3198,2182024-06-210%

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) (%)0.0037.8131.6713.10144.69
Dividend Payout Ratio (CP) (%)0.0035.4030.1412.03126.74
Earning Retention Ratio (%)0.0062.1968.3386.90-44.69
Cash Earning Retention Ratio (%)0.0064.6069.8687.97-26.74
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 (%)0.0062.1868.3286.89-44.69
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: 1,647.75

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.

Undervalued: 5.22% compared to the current price 1566

Intrinsic Value: 1,646.68

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.

Undervalued: 5.15% compared to the current price ₹1566

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 23.33, which is a positive sign.
  2. The company has higher reserves (552.17 cr) compared to borrowings (1.58 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 13.58%, 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: %)
      • 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: %)
      • 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: 30.0 (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: N/A
      • 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

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, Ring Road, Domlur, Bengaluru Karnataka 560071info@sasken.com
http://www.sasken.com
Management
NamePosition Held
Mr. Rajiv C ModyChairman & Managing Director
Mr. Sanjay M ShahIndependent Director
Dr. G VenkateshNon Executive Director
Mr. Sunirmal TalukdarIndependent Director
Mr. Bharat V PatelIndependent Director
Mr. Pranabh D ModyNon Executive Director
Ms. Madhu KhatriIndependent Director
Mr. Raja Ramana MachaIndependent Director
Mr. Som MittalIndependent Director
Mr. Sunil SachanIndependent Director

FAQ

What is the latest fair value of Sasken Technologies Ltd?

The latest fair value of Sasken Technologies Ltd is ₹1647.75.

What is the Market Cap of Sasken Technologies Ltd?

The Market Cap of Sasken Technologies Ltd is 2,362 Cr..

What is the current Stock Price of Sasken Technologies Ltd as on 23 June 2024?

The current stock price of Sasken Technologies Ltd as on 23 June 2024 is ₹1,566.

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 1,834/861.

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

The Stock P/E of Sasken Technologies Ltd is 30.0.

What is the Book Value of Sasken Technologies Ltd?

The Book Value of Sasken Technologies Ltd is 510.

What is the Dividend Yield of Sasken Technologies Ltd?

The Dividend Yield of Sasken Technologies Ltd is 1.60 %.

What is the ROCE of Sasken Technologies Ltd?

The ROCE of Sasken Technologies Ltd is 12.4 %.

What is the ROE of Sasken Technologies Ltd?

The ROE of Sasken Technologies Ltd is 10.6 %.

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