BSE:500463

Stock Analysis Report

Executive Summary

AGC Networks Limited provides information and communications technology solutions worldwide.


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.

Share Price & News

How has AGC Networks's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500463's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-18.4%

500463

2.1%

IN IT

-2.9%

IN Market


1 Year Return

132.2%

500463

-15.1%

IN IT

-29.3%

IN Market

Return vs Industry: 500463 exceeded the Indian IT industry which returned -15.1% over the past year.

Return vs Market: 500463 exceeded the Indian Market which returned -29.3% over the past year.


Shareholder returns

500463IndustryMarket
7 Day-18.4%2.1%-2.9%
30 Day-38.3%-13.4%-23.7%
90 Day69.6%-18.3%-28.6%
1 Year132.2%132.2%-12.5%-15.1%-27.9%-29.3%
3 Year183.2%183.2%35.7%27.3%-15.4%-20.0%
5 Year177.0%177.0%31.0%18.5%-3.3%-8.3%

Price Volatility Vs. Market

How volatile is AGC Networks's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is AGC Networks undervalued compared to its fair value and its price relative to the market?

14.27x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 500463's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 500463's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 500463 is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: 500463 is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 500463's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500463 is overvalued based on its PB Ratio (14.3x) compared to the IN IT industry average (0.7x).


Next Steps

Future Growth

How is AGC Networks forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.5%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as AGC Networks has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has AGC Networks performed over the past 5 years?

-24.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500463 is currently unprofitable.

Growing Profit Margin: 500463 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 500463 is unprofitable, and losses have increased over the past 5 years at a rate of -24.4% per year.

Accelerating Growth: Unable to compare 500463's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 500463 is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (7.2%).


Return on Equity

High ROE: 500463 has a negative Return on Equity (-181.13%), as it is currently unprofitable.


Next Steps

Financial Health

How is AGC Networks's financial position?


Financial Position Analysis

Short Term Liabilities: 500463's short term assets (₹19.4B) exceed its short term liabilities (₹19.3B).

Long Term Liabilities: 500463's short term assets (₹19.4B) exceed its long term liabilities (₹6.3B).


Debt to Equity History and Analysis

Debt Level: 500463's debt to equity ratio (921.2%) is considered high.

Reducing Debt: 500463's debt to equity ratio has increased from 291.5% to 921.2% over the past 5 years.


Balance Sheet

Inventory Level: 500463 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 500463's debt is covered by short term assets (assets are 3.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if 500463 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 500463 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is AGC Networks's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 500463's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 500463's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 500463's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 500463's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 500463 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 500463's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Sanjeev Verma (52yo)

4.08s

Tenure

Mr. Sanjeev Shekhar Verma has been Chief Executive Officer since February 15, 2016 and also serves as Executive Director since 2019 at AGC Networks Limited. Mr. Verma served as a Whole Time Director of AGC ...


CEO Compensation Analysis

Compensation vs Market: Sanjeev's total compensation ($USD0.00) is below average for companies of similar size in the Indian market ($USD48.15K).

Compensation vs Earnings: Insufficient data to compare Sanjeev's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Sanjeev Verma
CEO & Executive Director4.08yrsno datano data
Deepak Bansal
CFO & Additional Executive Director0.58yrno datano data
Komal Seshagiri
Group Chief General Counsel0.92yrno datano data
Neelam Kapoor
VP & Head of Marketingno datano datano data
Abhinav Sharma
VP and Sales Head of India & SAARCno datano datano data
Rohit Himatsingka
VP and Head of Corporate Development & Strategyno datano datano data
Mahua Mukherjee
Chief People Officer & Executive Director1.92yrs₹7.78mno data
Pravin Shinde
Head of Service Delivery & VPno datano datano data
Subir Bhatnagar
VP and Head of UC & Digital Applicationsno datano datano data
Jagdish Mhalgi
Head of Customer Support & Services and VPno datano data0.0034% 259.8k

2.0yrs

Average Tenure

51.5yo

Average Age

Experienced Management: 500463's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sanjeev Verma
CEO & Executive Director4.08yrsno datano data
Deepak Bansal
CFO & Additional Executive Director0.58yrno datano data
Mahua Mukherjee
Chief People Officer & Executive Director1.92yrs₹7.78mno data
Naresh Lakshman Kothari
Additional Non-Executive Director1.17yrsno data1.01% 78.0m
Sujay Sheth
Non-Executive Independent Chairmanno data₹1.75mno data
Dilip Thakkar
Additional Independent Director2yrs₹1.50mno data

1.9yrs

Average Tenure

50.5yo

Average Age

Experienced Board: 500463's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 500463 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 24.8%.


Top Shareholders

Company Information

AGC Networks Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AGC Networks Limited
  • Ticker: 500463
  • Exchange: BSE
  • Founded: 1986
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹7.734b
  • Shares outstanding: 29.74m
  • Website: https://www.agcnetworks.com

Number of Employees


Location

  • AGC Networks Limited
  • Equinox Business Park
  • Tower 1 (Peninsula Techno Park)
  • Mumbai
  • Maharashtra
  • 400070
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500463BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 1995
AGCNETNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 1995

Biography

AGC Networks Limited provides information and communications technology solutions worldwide. The company offers unified communication solutions, such as IP communication, multimedia integration, and collaboration solutions. It also provides data center and edge IT solutions, such as hyper converged infrastructure that integrates computing, storage, networking, and virtualization resources and other technologies; private cloud; and software defined networking. In addition, the company offers a portfolio of cyber security services, which include certification, compliance, implementation, management, and audit services. Further, it provides digital transformation and applications, such as customer engagement and loyalty, customer journey, agent assisted service, branch queue management, voice biometrics, social media analytics, and IoT based big data analytics solutions, as well as self-service platform. Additionally, the company offers services, such as on-site support; remote maintenance of infrastructure and application support; managed services that include enterprise service management, integrated management data center services, and cloud computing services; and professional services comprising consulting and analysis, deployment services, customization and integration, and audit and review services. It serves banking, financial service, and insurance; education; healthcare; travel and hospitality; IT/ITES; and manufacturing industries. The company was founded in 1986 and is based in Mumbai, India. AGC Networks Limited is a subsidiary of Essar Global Fund Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 12:52
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.