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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Spacenet Enterprises India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:26 pm

Market Cap 1,214 Cr.
Current Price 21.6
High / Low39.4/19.6
Stock P/E254
Book Value 2.37
Dividend Yield0.00 %
ROCE13.1 %
ROE12.7 %
Face Value 1.00
PEG Ratio14.96

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

View Share Price Target for Spacenet Enterprises India Ltd

Competitors of Spacenet Enterprises India 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 23.4 Cr. 182245/11030.7 16.80.55 %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 59.5 Cr. 17.327.0/16.2180 11.20.00 %%% 10.0
First Fintec Ltd 8.64 Cr. 8.3010.9/4.51 10.20.00 %2.41 %1.77 % 10.0
Industry Average39,977.65 Cr703.7691.08122.740.67%18.02%18.80%6.94

All Competitor Stocks of Spacenet Enterprises India Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales1.801.534.1511.3123.0619.4557.6939.1025.8820.8024.0617.7440.09
Expenses2.581.994.0611.1522.3219.3057.2338.2424.5418.4021.5716.5138.95
Operating Profit-0.78-0.460.090.160.740.150.460.861.342.402.491.231.14
OPM %-43.33%-30.07%2.17%1.41%3.21%0.77%0.80%2.20%5.18%11.54%10.35%6.93%2.84%
Other Income0.670.000.040.070.380.270.090.020.030.100.000.010.22
Interest0.150.000.000.010.010.010.020.130.160.000.000.010.01
Depreciation0.090.010.020.050.040.040.050.050.050.050.060.060.07
Profit before tax-0.35-0.470.110.171.070.370.480.701.162.452.431.171.28
Tax %2.86%0.00%9.09%-11.76%11.21%0.00%-22.92%0.00%0.00%0.00%0.00%0.00%9.38%
Net Profit-0.34-0.470.110.190.950.370.590.701.152.452.431.161.16
EPS in Rs-0.02-0.030.010.010.020.010.010.010.020.050.050.020.02

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
Sales36311013940142103
Expenses36325018104013995
Operating Profit011-1-3-0-0-5-2137
OPM %13%11%20%-136%-236%-26%-163%-20%1%2%7%
Other Income-000000001000
Interest111100000000
Depreciation000000000000
Profit before tax-1-00-2-30-0-5-1137
Tax %0%0%0%0%1%0%0%0%-1%14%-4%2%
Net Profit-1-00-2-40-0-5-1137
EPS in Rs-0.000.01-0.34-0.710.02-0.01-1.06-0.050.010.050.13
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142016-20172017-20182020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)100.00%-100.00%100.00%80.00%200.00%200.00%133.33%
Change in YoY Net Profit Growth (%)0.00%-200.00%200.00%-20.00%120.00%0.00%-66.67%

Spacenet Enterprises India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 7 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:32%
5 Years:187%
3 Years:128%
TTM:1%
Compounded Profit Growth
10 Years:93%
5 Years:200%
3 Years:126%
TTM:-29%
Stock Price CAGR
10 Years:%
5 Years:89%
3 Years:117%
1 Year:-10%
Return on Equity
10 Years:%
5 Years:%
3 Years:10%
Last Year:13%

Last Updated: Unknown

Balance Sheet

Last Updated: October 15, 2024, 2:50 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital49494949555516535355
Reserves-54-54-54-56-24-15-15-20-20-19-1520
Borrowings11991013771516200
Other Liabilities2222114421123829
Total Liabilities76654001144976104
Fixed Assets000000000111
CWIP000000000000
Investments555500000142967
Other Assets2110400114344636
Total Assets76654001144976104

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +031-0-00-0-8-13-4-41
Cash from Investing Activity +0-0-00000-0-0-16-11-39
Cash from Financing Activity +-1-2-100-0-0814231241
Net Cash Flow-00-00-00-0003-23

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-11.00-8.00-8.00-11.00-16.00-7.00-7.00-20.00-18.00-1.003.007.00

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 Days1731174052605352079467
Inventory Days0002
Days Payable468
Cash Conversion Cycle1731174052605352074860
Working Capital Days26-90-167-1,02688-2,576-64-301505497
ROCE %9%16%18%-29%-9%4%8%13%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters55.71%55.71%55.71%16.61%16.61%16.61%16.61%16.51%16.51%16.51%16.06%16.04%
DIIs1.79%1.79%1.79%0.53%0.53%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public42.50%42.50%42.50%82.85%82.85%83.39%83.39%83.49%83.49%83.49%83.94%83.96%
No. of Shareholders17,23717,15317,08817,01116,96221,04521,84522,43122,69726,04427,71729,885

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 18Mar 17
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)0.200.050.031.01-0.71
Diluted EPS (Rs.)0.200.050.031.01-0.71
Cash EPS (Rs.)0.200.050.010.00-0.69
Book Value[Excl.RevalReserv]/Share (Rs.)1.911.020.670.00-3.89
Book Value[Incl.RevalReserv]/Share (Rs.)1.911.020.670.00-3.89
Revenue From Operations / Share (Rs.)2.332.710.810.000.29
PBDIT / Share (Rs.)0.200.050.010.00-0.64
PBIT / Share (Rs.)0.190.050.010.00-0.66
PBT / Share (Rs.)0.190.040.010.00-0.70
Net Profit / Share (Rs.)0.190.040.010.00-0.71
NP After MI And SOA / Share (Rs.)0.190.050.010.00-0.71
PBDIT Margin (%)8.712.122.351029.65-217.00
PBIT Margin (%)8.451.961.981025.67-222.57
PBT Margin (%)8.431.741.93981.67-238.88
Net Profit Margin (%)8.331.811.63981.67-240.69
NP After MI And SOA Margin (%)8.141.861.68981.67-240.69
Return on Networth / Equity (%)9.925.102.120.000.00
Return on Capital Employeed (%)9.795.182.250.0016.99
Return On Assets (%)8.263.301.360.00-79.55
Long Term Debt / Equity (X)0.010.000.050.000.00
Total Debt / Equity (X)0.010.000.110.00-0.66
Asset Turnover Ratio (%)1.232.150.000.000.00
Current Ratio (X)3.902.112.650.000.13
Quick Ratio (X)3.872.112.650.000.13
Interest Coverage Ratio (X)512.589.6248.1523.31-13.31
Interest Coverage Ratio (Post Tax) (X)491.079.2134.4623.31-13.76
Enterprise Value (Cr.)1421.84861.77121.860.0015.59
EV / Net Operating Revenue (X)11.095.962.820.0010.72
EV / EBITDA (X)127.24280.45119.950.00-4.94
MarketCap / Net Operating Revenue (X)11.105.962.830.002.19
Price / BV (X)13.5316.333.560.00-0.16
Price / Net Operating Revenue (X)11.105.962.830.002.19
EarningsYield0.010.000.010.00-1.10

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Spacenet Enterprises India Ltd as of November 21, 2024 is: 77.98

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 21, 2024, Spacenet Enterprises India Ltd is Undervalued by 261.02% compared to the current share price 21.60

Intrinsic Value of Spacenet Enterprises India Ltd as of November 21, 2024 is: 91.22

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 21, 2024, Spacenet Enterprises India Ltd is Undervalued by 322.31% compared to the current share price 21.60

Last 5 Year EPS CAGR: 16.97%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock is trading at a low valuation with an average P/B ratio of -0.08 and average Dividend Yield of 163.10%.
  2. The stock has a low average Working Capital Days of 5.08, which is a positive sign.
  1. The stock has a low average ROCE of 2.50%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 96.42, which may not be favorable.
  3. The company has higher borrowings (8.25) compared to reserves (-27.17), which may suggest financial risk.
  4. The company has not shown consistent growth in sales (26.00) and profit (-0.08).

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 Spacenet Enterprises India Ltd:
    1. Net Profit Margin: 8.33%
      • 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: 9.79% (Industry Average ROCE: 17.01%)
      • 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%: 9.92% (Industry Average ROE: 17.04%)
      • 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): 491.07
      • 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: 3.87
      • 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: 254 (Industry average Stock P/E: 72.36)
      • 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: 0.01
      • 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

Spacenet Enterprises India Ltd. is a Public Limited Listed company incorporated on 28/05/2010 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L72200TG2010PLC068624 and registration number is 068624. Currently Company is involved in the business activities of Security and commodity contracts brokerage. Company’s Total Operating Revenue is Rs. 40.05 Cr. and Equity Capital is Rs. 53.04 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwarePlot No.114, Survey No.66/2, Street No.03, Hyderabad Telangana 500008info@spacenetent.com
http://www.spacenetent.com
Management
NamePosition Held
Mr. Sethurathnam RaviChairman
Mr. Dasigi Venkata Surya Prakash RaoExecutive Director & CFO
Mr. Vasudevarao MarakaWhole Time Director
Mr. Ghanshyam DassIndependent Director
Mr. Prathipati ParthasarathiIndependent Director
Mr. Sarat Kumar MalikIndependent Director
Mrs. Korpu Venkata Kali Kanaka DurgaIndependent Woman Director

FAQ

What is the latest intrinsic value of Spacenet Enterprises India Ltd?

The latest intrinsic value of Spacenet Enterprises India Ltd as on 21 November 2024 is ₹77.98, which is 261.02% higher than the current market price of ₹21.60.

What is the Market Cap of Spacenet Enterprises India Ltd?

The Market Cap of Spacenet Enterprises India Ltd is 1,214 Cr..

What is the current Stock Price of Spacenet Enterprises India Ltd as on 21 November 2024?

The current stock price of Spacenet Enterprises India Ltd as on 21 November 2024 is ₹21.6.

What is the High / Low of Spacenet Enterprises India Ltd stocks in FY 2024?

In FY 2024, the High / Low of Spacenet Enterprises India Ltd stocks is 39.4/19.6.

What is the Stock P/E of Spacenet Enterprises India Ltd?

The Stock P/E of Spacenet Enterprises India Ltd is 254.

What is the Book Value of Spacenet Enterprises India Ltd?

The Book Value of Spacenet Enterprises India Ltd is 2.37.

What is the Dividend Yield of Spacenet Enterprises India Ltd?

The Dividend Yield of Spacenet Enterprises India Ltd is 0.00 %.

What is the ROCE of Spacenet Enterprises India Ltd?

The ROCE of Spacenet Enterprises India Ltd is 13.1 %.

What is the ROE of Spacenet Enterprises India Ltd?

The ROE of Spacenet Enterprises India Ltd is 12.7 %.

What is the Face Value of Spacenet Enterprises India Ltd?

The Face Value of Spacenet Enterprises India Ltd is 1.00.

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 Spacenet Enterprises India 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