Fundamental Analysis of Xchanging Solutions Ltd

Basic Stock Data

Last Updated: July 26, 2024, 6:56 pm

Market Cap	1,526 Cr.
Current Price	137
High / Low	177/81.0
Stock P/E	112
Book Value	31.8
Dividend Yield	23.3 %
ROCE	11.9 %
ROE	2.66 %
Face Value	10.0
PEG Ratio	-4.63

Data Source: screener.in

Competitors of Xchanging Solutions Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Empower India Ltd	264 Cr.	2.27	3.86/0.55	38.2	2.54	0.00 %	2.38 %	2.35 %	1.00
Elnet Technologies Ltd	144 Cr.	360	399/210	8.23	348	0.56 %	17.9 %	13.4 %	10.0
Ekennis Software Service Ltd	14.7 Cr.	105	169/80.0		35.8	0.00 %	1.55 %	0.00 %	10.0
eDynamics Solutions Ltd	8.23 Cr.	3.22	3.22/1.14		13.9	0.00 %	0.06 %	0.06 %	10.0
ECS Biztech Ltd	23.4 Cr.	11.4	14.2/5.92	8.32	1.04	0.00 %	4.78 %	%	10.0
Industry Average	53,198.59 Cr	757.61		85.71	116.90	0.39%	20.98%	20.94%	6.77

Quarterly Result

Month	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Sales	48	45	42	43	45	44	43	41	46	44	43	42	44
Expenses	35	32	29	29	31	29	30	33	33	30	32	31	35
Operating Profit	12	13	13	14	14	15	14	8	13	14	12	11	10
OPM %	26%	28%	31%	32%	31%	34%	31%	19%	29%	32%	27%	27%	22%
Other Income	2	2	2	2	2	2	3	2	3	4	6	5	8
Interest	0	0	0	0	0	0	0	0	0	0	0	0	2
Depreciation	0	0	0	0	0	0	0	0	0	0	0	0	0
Profit before tax	14	15	15	16	16	17	17	10	16	17	17	16	16
Tax %	3%	27%	-29%	23%	31%	10%	28%	32%	33%	151%	19%	123%	23%
Net Profit	14	11	19	12	11	15	12	7	11	-9	14	-4	12
EPS in Rs	1.25	0.95	1.69	1.08	0.99	1.34	1.08	0.62	0.99	-0.81	1.24	-0.32	1.11

Last Updated: July 11, 2024, 10:08 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 25, 2024, 11:38 am

Month	Dec 2012	Dec 2013	Dec 2014	Dec 2015	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Sales	209	243	287	279	307	186	184	182	196	174	174	174
Expenses	194	226	286	252	298	160	141	134	140	121	125	128
Operating Profit	15	17	1	28	9	26	43	48	55	53	50	47
OPM %	7%	7%	0%	10%	3%	14%	23%	26%	28%	31%	28%	27%
Other Income	11	27	36	15	14	16	15	13	16	9	11	22
Interest	0	1	1	0	0	0	0	0	0	0	0	2
Depreciation	5	5	5	4	3	1	0	1	1	1	1	1
Profit before tax	21	39	32	39	20	41	57	59	70	61	60	66
Tax %	40%	22%	21%	24%	8%	22%	18%	8%	10%	14%	25%	79%
Net Profit	12	30	25	29	18	32	47	55	62	53	45	14
EPS in Rs	1.10	2.72	2.25	2.62	1.64	2.84	4.19	4.91	5.60	4.72	4.03	1.23
Dividend Payout %	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	1,545%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	77.78%	46.88%	17.02%	12.73%	-14.52%	-15.09%	-68.89%
Change in YoY Net Profit Growth (%)	0.00%	-30.90%	-29.85%	-4.29%	-27.24%	-0.58%	-53.79%

Growth

Compounded Sales Growth
10 Years:	-3%
5 Years:	-1%
3 Years:	-4%
TTM:	0%

Compounded Profit Growth
10 Years:	-7%
5 Years:	-22%
3 Years:	-40%
TTM:	-70%

Stock Price CAGR
10 Years:	20%
5 Years:	21%
3 Years:	1%
1 Year:	12%

Return on Equity
10 Years:	8%
5 Years:	8%
3 Years:	6%
Last Year:	3%

Last Updated: July 25, 2024, 4:59 am

Balance Sheet

Last Updated: July 10, 2024, 11:29 pm

Month	Dec 2012	Dec 2013	Dec 2014	Dec 2015	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Equity Capital	111	111	111	111	111	111	111	111	111	111	111	111
Reserves	139	167	193	222	239	272	322	385	444	502	565	243
Borrowings	2	2	2	1	1	0	0	2	3	2	1	105
Other Liabilities	74	105	103	78	101	84	80	75	67	61	66	64
Total Liabilities	326	386	409	412	452	468	513	573	625	676	743	523
Fixed Assets	166	166	166	164	161	159	159	161	160	161	160	159
CWIP	0	0	0	0	0	0	0	0	0	0	0	0
Investments	0	0	0	0	101	122	0	0	0	0	0	0
Other Assets	159	220	243	249	190	188	355	412	465	516	583	364
Total Assets	326	386	409	412	452	468	513	573	625	676	743	523

Reserves and Borrowings Chart

Cash Flow

Month	Dec 2012	Dec 2013	Dec 2014	Dec 2015	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity	14	34	1	28	38	36	48	46	62	35	42	-12
Cash from Investing Activity	-13	-6	4	6	8	6	14	24	5	15	34	37
Cash from Financing Activity	-0	0	0	-1	-1	-1	-0	-1	-2	-1	-0	-232
Net Cash Flow	2	29	5	33	45	42	62	69	65	49	75	-207

Free Cash Flow

Month	Dec 2012	Dec 2013	Dec 2014	Dec 2015	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	13.00	15.00	-1.00	27.00	8.00	26.00	43.00	46.00	52.00	51.00	49.00	-58.00

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

Month	Dec 2011	Dec 2012	Dec 2013	Dec 2014	Dec 2015	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Debtor Days	41	80	70	85	60	55	61	57	41	17	31	16
Inventory Days
Days Payable
Cash Conversion Cycle	41	80	70	85	60	55	61	57	41	17	31	16
Working Capital Days	17	43	6	23	22	-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

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Promoters	75.00%	75.00%	75.00%	75.00%	75.00%	75.00%	75.00%	75.00%	75.00%	75.00%	75.00%	75.00%
FIIs	0.20%	0.04%	0.15%	0.24%	0.24%	0.06%	0.11%	0.05%	0.04%	0.11%	0.11%	0.23%
DIIs	4.34%	0.37%	0.37%	0.31%	0.31%	0.31%	0.31%	0.31%	0.29%	0.29%	0.29%	0.29%
Public	20.46%	24.59%	24.48%	24.45%	24.45%	24.63%	24.57%	24.63%	24.68%	24.60%	24.58%	24.47%
No. of Shareholders	25,385	59,355	58,955	59,940	58,997	58,778	56,672	54,834	52,695	57,671	59,457	71,437

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	1.23	4.03	4.72	5.60	4.91
Diluted EPS (Rs.)	1.23	4.03	4.72	5.60	4.91
Cash EPS (Rs.)	1.28	4.09	4.80	5.73	5.04
Book Value[Excl.RevalReserv]/Share (Rs.)	31.77	60.70	55.07	49.88	44.53
Book Value[Incl.RevalReserv]/Share (Rs.)	31.77	60.70	55.07	49.88	44.53
Revenue From Operations / Share (Rs.)	15.66	15.66	15.64	17.57	16.36
PBDIT / Share (Rs.)	6.16	5.41	5.56	6.40	5.46
PBIT / Share (Rs.)	6.11	5.36	5.48	6.28	5.33
PBT / Share (Rs.)	5.94	5.35	5.46	6.25	5.32
Net Profit / Share (Rs.)	1.23	4.03	4.72	5.61	4.91
NP After MI And SOA / Share (Rs.)	1.23	4.03	4.72	5.61	4.91
PBDIT Margin (%)	39.32	34.57	35.54	36.43	33.39
PBIT Margin (%)	39.01	34.22	35.02	35.72	32.60
PBT Margin (%)	37.94	34.17	34.92	35.59	32.53
Net Profit Margin (%)	7.85	25.74	30.16	31.89	30.01
NP After MI And SOA Margin (%)	7.85	25.74	30.16	31.89	30.01
Return on Networth / Equity (%)	3.87	6.63	8.56	11.23	11.02
Return on Capital Employeed (%)	14.55	8.67	9.86	12.45	11.86
Return On Assets (%)	2.61	6.04	7.80	9.99	9.54
Long Term Debt / Equity (X)	0.29	0.00	0.00	0.00	0.00
Total Debt / Equity (X)	0.29	0.00	0.00	0.00	0.00
Asset Turnover Ratio (%)	0.27	0.07	0.09	0.09	0.10
Current Ratio (X)	6.09	9.94	8.87	6.62	5.37
Quick Ratio (X)	6.09	9.94	8.87	6.62	5.37
Dividend Payout Ratio (NP) (%)	2439.48	0.00	0.00	0.00	0.00
Dividend Payout Ratio (CP) (%)	2346.98	0.00	0.00	0.00	0.00
Earning Retention Ratio (%)	-2339.48	0.00	0.00	0.00	0.00
Cash Earning Retention Ratio (%)	-2246.98	0.00	0.00	0.00	0.00
Interest Coverage Ratio (X)	36.68	603.10	387.13	274.27	468.15
Interest Coverage Ratio (Post Tax) (X)	8.33	450.00	329.56	241.15	421.77
Enterprise Value (Cr.)	1057.28	78.16	462.18	328.57	24.97
EV / Net Operating Revenue (X)	6.06	0.44	2.65	1.68	0.13
EV / EBITDA (X)	15.41	1.30	7.46	4.61	0.41
MarketCap / Net Operating Revenue (X)	7.23	3.40	5.18	3.68	1.93
Retention Ratios (%)	-2339.48	0.00	0.00	0.00	0.00
Price / BV (X)	3.56	0.87	1.47	1.30	0.70
Price / Net Operating Revenue (X)	7.23	3.40	5.18	3.68	1.93
EarningsYield	0.01	0.07	0.05	0.08	0.15

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 116.81

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.

Overvalued: 14.74% compared to the current price 137

Intrinsic Value: 88.56

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.

Overvalued: 35.36% compared to the current price 137

Last 5 Year EPS CAGR: -24.18%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a low average Working Capital Days of -12.33, which is a positive sign. The company has higher reserves (307.75 cr) compared to borrowings (10.08 cr), indicating strong financial stability. The company has shown consistent growth in sales (216.25 cr) and profit (47.08 cr) over the years.	The stock has a low average ROCE of 10.58%, which may not be favorable. 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: 7.85%
  - 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: 14.55% (Industry Average ROCE: 20.96%)
  - 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%: 3.87% (Industry Average ROE: 20.94%)
  - 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): 8.33
  - 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: 6.09
  - 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: 112 (Industry average Stock P/E: 85.93)
  - 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: 0.29
  - 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.

INDUSTRY	ADDRESS	CONTACT
IT Consulting & Software	HP Avenue, 39/40, Electronic City, Bengaluru Karnataka 560100	xchangingcompliance@dxc.com http://www.dxc.com

Management
Name	Position Held
Mr. Nachiket Vibhakar Sukhtankar-	Managing Director & CEO
Mr. Shrenik Kumar Champalal	WholeTime Director & CFO
Mr. Kartik Ganapathy Iyer	Non Executive Director
Mr. Henry D'Souza	Independent Director
Mrs. Nonavinakeri Srinivasaiyengar Rama	Independent Director
Mr. Pankaj Vaish	Independent Director

FAQ

What is the latest fair value of Xchanging Solutions Ltd?

The latest fair value of Xchanging Solutions Ltd is ₹116.81.

What is the Market Cap of Xchanging Solutions Ltd?

The Market Cap of Xchanging Solutions Ltd is 1,526 Cr..

What is the current Stock Price of Xchanging Solutions Ltd as on 26 July 2024?

The current stock price of Xchanging Solutions Ltd as on 26 July 2024 is 137.

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 177/81.0.

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

The Stock P/E of Xchanging Solutions Ltd is 112.

What is the Book Value of Xchanging Solutions Ltd?

The Book Value of Xchanging Solutions Ltd is 31.8.

What is the Dividend Yield of Xchanging Solutions Ltd?

The Dividend Yield of Xchanging Solutions Ltd is 23.3 %.

What is the ROCE of Xchanging Solutions Ltd?

The ROCE of Xchanging Solutions Ltd is 11.9 %.

What is the ROE of Xchanging Solutions Ltd?

The ROE of Xchanging Solutions Ltd is 2.66 %.

What is the Face Value of Xchanging Solutions Ltd?

The Face Value of Xchanging Solutions Ltd is 10.0.