BSE:511658

Stock Analysis Report

Executive Summary

Nettlinx Limited provides products and solutions for network requirements of organizations in India.


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 511658's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-27.4%

511658

2.0%

IN IT

-3.0%

IN Market


1 Year Return

-62.5%

511658

-15.3%

IN IT

-29.2%

IN Market

Return vs Industry: 511658 underperformed the Indian IT industry which returned -15.5% over the past year.

Return vs Market: 511658 underperformed the Indian Market which returned -29% over the past year.


Shareholder returns

511658IndustryMarket
7 Day-27.4%2.0%-3.0%
30 Day-45.2%-19.0%-26.9%
90 Day-51.4%-18.6%-28.5%
1 Year-62.5%-62.5%-12.6%-15.3%-27.7%-29.2%
3 Year-86.8%-86.8%35.3%27.0%-15.2%-19.9%
5 Year-41.0%-41.0%30.5%18.0%-3.1%-8.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

7.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 511658's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 511658's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 511658 is poor value based on its PE Ratio (7.9x) compared to the IT industry average (7.4x).

PE vs Market: 511658 is good value based on its PE Ratio (7.9x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 511658's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 511658 is good value based on its PB Ratio (0.4x) compared to the IN IT industry average (0.6x).


Next Steps

Future Growth

How is Nettlinx 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 Nettlinx 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 Nettlinx performed over the past 5 years?

-4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 511658 has a large one-off gain of ₹9.6M impacting its December 31 2019 financial results.

Growing Profit Margin: 511658 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 511658 has become profitable over the past 5 years, growing earnings by -4.7% per year.

Accelerating Growth: 511658 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 511658 has become profitable in the last year, making it difficult to compare its past year earnings growth to the IT industry (7.2%).


Return on Equity

High ROE: 511658's Return on Equity (5.5%) is considered low.


Next Steps

Financial Health

How is Nettlinx's financial position?


Financial Position Analysis

Short Term Liabilities: 511658's short term assets (₹360.5M) exceed its short term liabilities (₹161.2M).

Long Term Liabilities: 511658's short term assets (₹360.5M) exceed its long term liabilities (₹169.1M).


Debt to Equity History and Analysis

Debt Level: 511658's debt to equity ratio (50.1%) is considered high.

Reducing Debt: 511658's debt to equity ratio has increased from 8.8% to 50.1% over the past 5 years.

Debt Coverage: 511658's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 511658's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet

Inventory Level: 511658 has a high level of physical assets or inventory.

Debt Coverage by Assets: 511658's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 511658's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 511658'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 511658's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 511658's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 511658'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?

5.0yrs

Average board tenure


CEO

Chandra Pogula (55yo)

no data

Tenure

₹3,600,000

Compensation

Mr. Chandra Sekhar Pogula has been Director of Nettlinx Ltd. since October 24, 2009 and serves as its Chief Executive Officer. Mr. Pogula served as Chief Operating Officer at Nettlinx Limited. Mr. Pogula s ...


CEO Compensation Analysis

Compensation vs Market: Chandra's total compensation ($USD48.15K) is about average for companies of similar size in the Indian market ($USD48.08K).

Compensation vs Earnings: Chandra's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Chandra Pogula
CEO & Directorno data₹3.60m0.87% 1.4m
Erwin Dieck
Independent & Non-Executive Director3.5yrsno datano data
Manohar Reddy
Non-Executive Chairman15.17yrsno data48.71% 80.4m
Venkata Hanumantha Joginapally
Independent & Non-Executive Director10.92yrsno datano data
Radhika Kundur
Non-Executive Woman Director5yrsno datano data
Kakarla Venkatasiva
Additional & Independent Non-Executive Director3.58yrsno datano data
Subramanyeswara Kakarala
Additional & Independent Non-Executive Director3.58yrsno data0.061% 100.8k

5.0yrs

Average Tenure

55yo

Average Age

Experienced Board: 511658's board of directors are considered experienced (5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Nettlinx Limited
  • Ticker: 511658
  • Exchange: BSE
  • Founded: 1994
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: ₹165.072m
  • Shares outstanding: 11.46m
  • Website: https://www.nettlinx.com

Location

  • Nettlinx Limited
  • 5-9-22, My Home Sarovar Plaza
  • Flat No. 303, 3rd Floor
  • Hyderabad
  • Andhra Pradesh
  • 500063
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
511658BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2005

Biography

Nettlinx Limited provides products and solutions for network requirements of organizations in India. The company offers Web designing services that include Website development and redesign; content management systems; corporate identity/logo design; custom Web programming; and Website building and email services, as well as Web hosting, dedicated leased lines, brochure designing, domain registration, Website maintenance, corporate presentations, and e-commerce solutions. It also provides networking services and solutions comprising Internet bandwidth, managed data center, co-location, managed network, and wireless broadband services, as well as network consultancy, managed messaging, network management, facility management, and other value added services. In addition, the company offers cryptocurrency, Fintech, and blockchain software development services, as well as software consulting, application development, and outsourcing and managed cloud services. Further, it is involved in the real estate development and renewable energy businesses, as well as act as an advisor for M&A and financing of M&A transactions. The company was incorporated in 1994 and is headquartered in Hyderabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/27 12:32
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.