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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sasken Technologies Ltd

About the Company - Sasken Technologies Ltd

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 560071investor@sasken.com
http://www.sasken.com
Management
NamePosition Held
Mr. Rajiv C ModyChairman & M.D & CEO
Ms. Neeta S RevankarWholeTime Director & CFO
Mr. Sanjay M ShahDirector
Dr. G VenkateshDirector
Mr. Sunirmal TalukdarDirector
Mr. Bharat V PatelDirector
Mr. Pranabh D ModyDirector
Ms. Madhu KhatriAdditional Director

Sasken Technologies Ltd. Share Price Update

Share PriceValue
Today₹1,507.45
Previous Day₹1,529.10

Basic Stock Data of Sasken Technologies Ltd

Market Cap 2,624 Cr.
Current Price 1,743
High / Low1,820/770
Stock P/E33.4
Book Value 499
Dividend Yield1.42 %
ROCE17.1 %
ROE13.8 %
Face Value 10.0

Data Source: screener.in

Competitors of Sasken Technologies Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
AAA Technologies Ltd 118 Cr. 92.2108/41.830.3 20.60.54 %15.9 %11.9 % 10.0
Sonata Software Ltd 23,303 Cr. 831866/34354.1 51.40.97 %39.1 %37.7 % 1.00
Mindpool Technologies Ltd 36.0 Cr. 85.0109/45.6 42.40.00 %3.25 %1.67 % 10.0
Cybertech Systems & Software Ltd 532 Cr. 171215/84.825.3 53.11.16 %20.0 %13.8 % 10.0
Xelpmoc Design and Tech Ltd 184 Cr. 126146/71.0 46.80.00 %20.9 %21.3 % 10.0
Industry Average178.6 Cr261.0421.9442.860.53%19.83%17.27%8.2

Tera Software Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales10711411111010910610910112012310398103
Expenses80797578747578749094898988
Operating Profit2735363234323127302914915
OPM %25%31%33%29%32%30%28%27%25%24%14%9%14%
Other Income5106111285-6161182210
Interest0000000000000
Depreciation3222222222222
Profit before tax29433941453834204439212923
Tax %20%21%26%18%17%20%21%25%18%19%18%11%21%
Net Profit23342934373027153631172618
EPS in Rs15.4722.5219.3322.5924.7819.9917.8610.1223.8720.7611.3417.0812.01

Sasken Technologies Ltd Quarterly Chart

Tera Software Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales520475458428483467503504492445434447427
Expenses443433405745436417434433404314305346360
Operating Profit764253-317475069718813112910167
OPM %15%9%12%-74%10%11%14%14%18%29%30%23%16%
Other Income2618325442495336463629353052
Interest1000000010000
Depreciation2219131177671110777
Profit before tax80407221629096100111112149158124111
Tax %20%20%29%45%29%12%17%18%30%23%19%20%
Net Profit643251120206858290791151289992
EPS in Rs24.6115.1824.1956.01116.4249.5048.1752.8552.3876.1185.2166.0961.19
Dividend Payout %28%46%132%48%27%14%21%24%105%33%29%38%

Sasken Technologies Ltd Profit & Loss Yearly Chart

Sasken Technologies Ltd 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:25%
5 Years:24%
3 Years:29%
1 Year:92%
Return on Equity
10 Years:13%
5 Years:16%
3 Years:18%
Last Year:14%

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

Sasken Technologies Ltd 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

Tera Software Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days726974607361576069556959
Inventory Days
Days Payable
Cash Conversion Cycle726974607361576069556959
Working Capital Days4048416732145612191119
ROCE %16%9%16%-9%11%13%17%17%19%28%25%17%

Sasken Technologies Ltd Financial Efficiency Indicators Chart

Tera Software Ltd 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

Sasken Technologies Ltd Shareholding Pattern Chart

No. of Sasken Technologies Ltd Shareholders

Sasken Technologies Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Quant Teck Fund982185.5611.31

Sasken Technologies Ltd ROCE Trend

Sasken Technologies Ltd EPS Trend

Sasken Technologies Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)66.1485.3176.2648.5752.92
Diluted EPS (Rs.)65.5885.2276.2648.5752.92
Cash EPS (Rs.)70.5889.5382.8759.7956.71
Book Value[Excl.RevalReserv]/Share (Rs.)477.93434.22375.09315.90407.94
Book Value[Incl.RevalReserv]/Share (Rs.)477.93434.22375.09315.90407.94
Revenue From Operations / Share (Rs.)296.98288.29295.55327.04294.74
PBDIT / Share (Rs.)86.72109.24106.4082.2768.47
PBIT / Share (Rs.)82.23104.9199.6474.8664.61
PBT / Share (Rs.)82.14104.8899.3274.3964.61
Net Profit / Share (Rs.)66.0985.2176.1152.3752.85
NP After MI And SOA / Share (Rs.)66.0985.2176.1152.3752.85
PBDIT Margin (%)29.2037.8936.0025.1523.23
PBIT Margin (%)27.6836.3833.7122.8921.92
PBT Margin (%)27.6536.3733.6022.7421.92
Net Profit Margin (%)22.2529.5525.7516.0117.92
NP After MI And SOA Margin (%)22.2529.5525.7516.0117.92
Return on Networth / Equity (%)13.8219.6220.2816.5712.95
Return on Capital Employeed (%)16.9823.8726.2722.8815.67
Return On Assets (%)12.0816.6217.1312.6511.39
Asset Turnover Ratio (%)0.440.530.610.590.54
Current Ratio (X)2.261.632.502.082.97
Quick Ratio (X)2.261.632.502.082.97
Dividend Payout Ratio (NP) (%)37.8131.6713.10144.6919.65
Dividend Payout Ratio (CP) (%)35.4030.1412.03126.7418.31
Earning Retention Ratio (%)62.1968.3386.90-44.6980.35
Cash Earning Retention Ratio (%)64.6069.8687.97-26.7481.69
Interest Coverage Ratio (X)976.283637.36342.40175.640.00
Interest Coverage Ratio (Post Tax) (X)744.992838.30245.91112.810.00
Enterprise Value (Cr.)1154.141356.851261.54551.581067.13
EV / Net Operating Revenue (X)2.583.132.841.122.12
EV / EBITDA (X)8.848.257.884.459.11
MarketCap / Net Operating Revenue (X)2.643.172.951.162.15
Retention Ratios (%)62.1868.3286.89-44.6980.34
Price / BV (X)1.642.112.331.201.55
Price / Net Operating Revenue (X)2.643.172.951.162.15
EarningsYield0.080.090.080.130.08

Sasken Technologies Ltd Profitability Ratios (%)

Sasken Technologies Ltd Liquidity Ratios

Sasken Technologies Ltd Liquidity Ratios (%)

Sasken Technologies Ltd Interest Coverage Ratios (X)

Sasken Technologies Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sasken Technologies Ltd

Fair Value: ₹2332.65

The stock is undervalued by 33.83% compared to the current price ₹1743

*Investments are subject to market risks

Strength and Weakness of Sasken Technologies Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of 25.42, which is a positive sign.
  2. The company has higher reserves (541.62 cr) compared to borrowings (1.46 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (467.92 cr) and profit (127.62 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 85.25 and average Dividend Yield of 28.52%.
  2. The stock has a low average ROCE of 14.92%, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 64.83, which may not be favorable.

Should I Buy Sasken Technologies Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Sasken Technologies Ltd:
    1. Net Profit Margin: 22.25%
      • 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: 16.98% (Industry Average ROCE: 21.76%)
      • 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): 744.99
      • 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: 2.26
      • 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: 33.4 (Industry average Stock P/E: 21.24)
      • 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: 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 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 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