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Last Updated on: 20 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 532616 | NSE: XCHANGING

Fundamental Analysis of Xchanging Solutions Ltd

Basic Stock Data

Last Updated: April 19, 2024, 1:15 pm

Market Cap 1,342 Cr.
Current Price 120
High / Low177/56.7
Stock P/E109
Book Value 46.0
Dividend Yield24.9 %
ROCE9.23 %
ROE6.96 %
Face Value 10.0

Data Source: screener.in

Competitors of Xchanging Solutions Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
BLS Infotech Ltd 155 Cr. 3.546.19/1.327,747 0.930.00 %0.02 %0.00 % 1.00
LTIMindtree Ltd 1,38,097 Cr. 4,6636,443/4,13030.0 6101.29 %37.7 %28.6 % 1.00
Inspirisys Solutions Ltd 507 Cr. 128128/50.540.5 2.200.00 %12.0 %% 10.0
63 Moons Technologies Ltd 1,963 Cr. 426691/1629.95 7040.45 %1.99 %1.43 % 2.00
Subex Ltd 1,687 Cr. 30.045.8/26.8 8.760.00 %9.35 %9.56 % 5.00
Industry Average28,481.80 Cr1,050.111,565.49265.180.35%12.21%7.92%3.80

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales44.7847.7244.7041.9642.5445.0743.9043.3941.3645.7744.2243.2642.48
Expenses31.1935.4731.9929.0228.9430.9529.1029.7733.3232.6230.2531.6431.17
Operating Profit13.5912.2512.7112.9413.6014.1214.8013.628.0413.1513.9711.6211.31
OPM %30.35%25.67%28.43%30.84%31.97%31.33%33.71%31.39%19.44%28.73%31.59%26.86%26.62%
Other Income1.882.422.141.952.472.011.913.142.273.383.645.574.62
Interest0.060.060.060.040.030.030.030.020.030.020.020.020.20
Depreciation0.370.230.230.230.280.170.150.150.160.150.150.150.12
Profit before tax15.0414.3814.5614.6215.7615.9316.5316.5910.1216.3617.4417.0215.61
Tax %0.20%3.41%27.06%-28.66%23.41%30.51%9.50%27.67%31.62%32.64%151.43%18.74%122.68%
Net Profit15.0113.8910.6218.8112.0711.0714.9612.006.9211.02-8.9713.83-3.54
EPS in Rs1.351.250.951.691.080.991.341.080.620.99-0.811.24-0.32

Last Updated: April 10, 2024, 5:23 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 5, 2024, 4:23 pm

MonthDec 2011Dec 2012Dec 2013Dec 2014Dec 2015Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales552209243287279307186184182196174174176
Expenses1,096194226286252298160141134140121125126
Operating Profit-5441517128926434855535050
OPM %-99%7%7%0%10%3%14%23%26%28%31%28%28%
Other Income1,11311273615141615131691117
Interest5011000000000
Depreciation13555431011111
Profit before tax550213932392041575970616066
Tax %2%40%22%21%24%8%22%18%8%10%14%25%
Net Profit537123025291832475562534512
EPS in Rs48.241.102.722.252.621.642.844.194.915.604.724.031.10
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)77.78%46.88%17.02%12.73%-14.52%-15.09%
Change in YoY Net Profit Growth (%)0.00%-30.90%-29.85%-4.29%-27.24%-0.58%

Growth

Compounded Sales Growth
10 Years:-2%
5 Years:-1%
3 Years:-1%
TTM:1%
Compounded Profit Growth
10 Years:11%
5 Years:7%
3 Years:-6%
TTM:-73%
Stock Price CAGR
10 Years:21%
5 Years:22%
3 Years:25%
1 Year:115%
Return on Equity
10 Years:9%
5 Years:10%
3 Years:9%
Last Year:7%

Last Updated: April 17, 2024, 10:53 am

Balance Sheet

MonthDec 2011Dec 2012Dec 2013Dec 2014Dec 2015Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital111111111111111111111111111111111111111
Reserves126139167193222239272322385444502565400
Borrowings2222110023211
Other Liabilities77741051037810184807567616673
Total Liabilities315326386409412452468513573625676743586
Fixed Assets164166166166164161159159161160161160160
CWIP0000000000000
Investments00000101122000000
Other Assets151159220243249190188355412465516583426
Total Assets315326386409412452468513573625676743586

Reserves and Borrowings Chart

Cash Flow

MonthDec 2011Dec 2012Dec 2013Dec 2014Dec 2015Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -105143412838364846623542
Cash from Investing Activity 377-13-64686142451534
Cash from Financing Activity -322-000-1-1-1-0-1-2-1-0
Net Cash Flow-4922953345426269654975

Free Cash Flow

MonthDec 2011Dec 2012Dec 2013Dec 2014Dec 2015Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-546.0013.0015.00-1.0027.008.0026.0043.0046.0052.0051.0049.00

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

MonthDec 2011Dec 2012Dec 2013Dec 2014Dec 2015Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days418070856055615741173116
Inventory Days
Days Payable
Cash Conversion Cycle418070856055615741173116
Working Capital Days174362322-17-30-44-19-63-31-55
ROCE %8%11%13%7%12%6%11%14%13%13%10%9%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%
FIIs0.24%0.20%0.04%0.15%0.24%0.24%0.06%0.11%0.05%0.04%0.11%0.11%
DIIs4.64%4.34%0.37%0.37%0.31%0.31%0.31%0.31%0.31%0.29%0.29%0.29%
Public20.12%20.46%24.59%24.48%24.45%24.45%24.63%24.57%24.63%24.68%24.60%24.58%
No. of Shareholders20,30025,38559,35558,95559,94058,99758,77856,67254,83452,69557,67159,457

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)4.034.725.604.914.19
Diluted EPS (Rs.)4.034.725.604.914.19
Cash EPS (Rs.)4.094.805.735.044.24
Book Value[Excl.RevalReserv]/Share (Rs.)60.7055.0749.8844.5338.89
Book Value[Incl.RevalReserv]/Share (Rs.)60.7055.0749.8844.5338.89
Revenue From Operations / Share (Rs.)15.6615.6417.5716.3616.53
PBDIT / Share (Rs.)5.415.566.405.465.14
PBIT / Share (Rs.)5.365.486.285.335.10
PBT / Share (Rs.)5.355.466.255.325.10
Net Profit / Share (Rs.)4.034.725.614.914.19
NP After MI And SOA / Share (Rs.)4.034.725.614.914.19
PBDIT Margin (%)34.5735.5436.4333.3931.11
PBIT Margin (%)34.2235.0235.7232.6030.85
PBT Margin (%)34.1734.9235.5932.5330.85
Net Profit Margin (%)25.7430.1631.8930.0125.37
NP After MI And SOA Margin (%)25.7430.1631.8930.0125.37
Return on Networth / Equity (%)6.638.5611.2311.0210.78
Return on Capital Employeed (%)8.679.8612.4511.8613.02
Return On Assets (%)6.047.809.999.549.09
Asset Turnover Ratio (%)0.070.090.090.100.14
Current Ratio (X)9.948.876.625.374.08
Quick Ratio (X)9.948.876.625.374.08
Interest Coverage Ratio (X)603.10387.13274.27468.155728.00
Interest Coverage Ratio (Post Tax) (X)450.00329.56241.15421.774672.00
Enterprise Value (Cr.)78.16462.18328.5724.97234.12
EV / Net Operating Revenue (X)0.442.651.680.131.27
EV / EBITDA (X)1.307.464.610.414.09
MarketCap / Net Operating Revenue (X)3.405.183.681.932.68
Price / BV (X)0.871.471.300.701.14
Price / Net Operating Revenue (X)3.405.183.681.932.68
EarningsYield0.070.050.080.150.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 435.87

The stock is undervalued by 263.22% compared to the current price ₹120

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.

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -12.33, which is a positive sign.
  2. The company has higher reserves (305.85 cr) compared to borrowings (1.46 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (242.23 cr) and profit (85.77 cr) over the years.
  1. The stock has a low average ROCE of 10.58%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 51.17, 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 Xchanging Solutions Ltd:
    1. Net Profit Margin: 25.74%
      • 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: 8.67% (Industry Average ROCE: 12.21%)
      • 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%: 6.63% (Industry Average ROE: 7.92%)
      • 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): 450.00
      • 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: 9.94
      • 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: 109 (Industry average Stock P/E: 1565.49)
      • 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

Xchanging Solutions Ltd. is a Public Limited Listed company incorporated on 01/02/2002 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L72200KA2002PLC030072 and registration number is 030072. Currently Company is involved in the business activities of Computer programming activities. Company’s Total Operating Revenue is Rs. 43.85 Cr. and Equity Capital is Rs. 111.40 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwareHP Avenue, 39/40, Electronic City, Bengaluru Karnataka 560100compliance@xchanging.com
http://www.dxc.com
Management
NamePosition Held
Mr. Nachiket Vibhakar Sukhtankar-Managing Director & CEO
Mr. Shrenik Kumar ChampalalWholeTime Director & CFO
Ms. Gidugu Kalpana TatavartiNon Executive Director
Mr. Henry D'SouzaIndependent Director
Mrs. Nonavinakeri Srinivasaiyengar RamaIndependent Director
Mr. Pankaj VaishIndependent Director

Xchanging Solutions Ltd. Share Price Update

Share PriceValue
Today₹120.60
Previous Day₹121.10

FAQ

What is the latest fair value of Xchanging Solutions Ltd?

The latest fair value of Xchanging Solutions Ltd is 435.87.

What is the Market Cap of Xchanging Solutions Ltd?

The Market Cap of Xchanging Solutions Ltd is 1,342 Cr..

What is the current Stock Price of Xchanging Solutions Ltd as on 20 April 2024?

The current stock price of Xchanging Solutions Ltd as on 20 April 2024 is 120.

What is the High / Low of Xchanging Solutions Ltd stocks in FY 2024?

In FY 2024, the High / Low of Xchanging Solutions Ltd stocks is ₹177/56.7.

What is the Stock P/E of Xchanging Solutions Ltd?

The Stock P/E of Xchanging Solutions Ltd is 109.

What is the Book Value of Xchanging Solutions Ltd?

The Book Value of Xchanging Solutions Ltd is 46.0.

What is the Dividend Yield of Xchanging Solutions Ltd?

The Dividend Yield of Xchanging Solutions Ltd is 24.9 %.

What is the ROCE of Xchanging Solutions Ltd?

The ROCE of Xchanging Solutions Ltd is 9.23 %.

What is the ROE of Xchanging Solutions Ltd?

The ROE of Xchanging Solutions Ltd is 6.96 %.

What is the Face Value of Xchanging Solutions Ltd?

The Face Value of Xchanging Solutions 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 Xchanging Solutions 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