BSE:517344

Stock Analysis Report

Executive Summary

Mindteck (India) Limited provides product engineering and information technology (IT) services in the United States, India, and internationally.


Snowflake Analysis

Flawless balance sheet unattractive dividend payer.


Similar Companies

Share Price & News

How has Mindteck (India)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 517344's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.6%

517344

8.5%

IN IT

8.9%

IN Market


1 Year Return

-62.3%

517344

-18.3%

IN IT

-30.6%

IN Market

Return vs Industry: 517344 underperformed the Indian IT industry which returned -18.3% over the past year.

Return vs Market: 517344 underperformed the Indian Market which returned -30.6% over the past year.


Shareholder returns

517344IndustryMarket
7 Day-8.6%8.5%8.9%
30 Day-32.0%-15.3%-24.8%
90 Day-46.9%-19.5%-29.4%
1 Year-61.2%-62.3%-15.8%-18.3%-29.2%-30.6%
3 Year-82.3%-83.3%34.0%25.7%-17.0%-21.5%
5 Year-81.2%-82.8%28.3%16.0%-5.4%-10.4%

Price Volatility Vs. Market

How volatile is Mindteck (India)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Mindteck (India) undervalued compared to its fair value and its price relative to the market?

0.18x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 517344 (₹13.9) is trading above our estimate of fair value (₹13.64)

Significantly Below Fair Value: 517344 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 517344 is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: 517344 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 517344's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 517344 is good value based on its PB Ratio (0.2x) compared to the IN IT industry average (0.7x).


Next Steps

Future Growth

How is Mindteck (India) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.4%

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 Mindteck (India) 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 Mindteck (India) performed over the past 5 years?

-55.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 517344 is currently unprofitable.

Growing Profit Margin: 517344 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 517344 is unprofitable, and losses have increased over the past 5 years at a rate of -55.8% per year.

Accelerating Growth: Unable to compare 517344's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 517344 is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (7.2%).


Return on Equity

High ROE: 517344 has a negative Return on Equity (-11.14%), as it is currently unprofitable.


Next Steps

Financial Health

How is Mindteck (India)'s financial position?


Financial Position Analysis

Short Term Liabilities: 517344's short term assets (₹1.2B) exceed its short term liabilities (₹375.6M).

Long Term Liabilities: 517344's short term assets (₹1.2B) exceed its long term liabilities (₹202.9M).


Debt to Equity History and Analysis

Debt Level: 517344 is debt free.

Reducing Debt: 517344 has no debt compared to 5 years ago when its debt to equity ratio was 0.01%.


Balance Sheet

Inventory Level: 517344 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 517344's debt is covered by short term assets.


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: 517344 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: 517344 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

  • Explore more healthy companies in the Software industry.

Dividend

What is Mindteck (India)'s current dividend yield, its reliability and sustainability?

7.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 517344's dividend (7.19%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: 517344's dividend (7.19%) is in the top 25% of dividend payers in the Indian market (4.16%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 517344 has been paying a dividend for less than 10 years.

Growing Dividend: 517344 has only been paying a dividend for 6 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: 517344 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.8yrs

Average board tenure


CEO

Anand Balakrishnan

no data

Tenure

Mr. Anand Balakrishnan serves as Managing Director and Chief Executive Officer of Mindteck (India) Limited since March 1, 2020 and serves as its Additional Director since February 14, 2020. Mr. Balakrishna ...


CEO Compensation Analysis

Compensation vs Market: Anand's total compensation ($USD0.00) is below average for companies of similar size in the Indian market ($USD48.16K).

Compensation vs Earnings: Anand's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Anand Balakrishnan
CEO, MD & Additional Directorno datano datano data
Meenaz Dhanani
Non-Executive Director6.42yrsno datano data
Guhan Subramaniam
Independent Director3.83yrs₹200.00kno data
Satish Menon
Independent Director1.83yrs₹400.00kno data
Subhash Dhar
Independent Director1.83yrs₹300.00kno data
Yusuf Lanewala
Non-Executive Chairman6.42yrs₹400.00k0.12% 415.9k
Jagdish Malkani
Independent Director6.58yrs₹400.00kno data
Prochie Mukherji
Independent Director4.83yrs₹300.00kno data

4.8yrs

Average Tenure

63yo

Average Age

Experienced Board: 517344's board of directors are considered experienced (4.8 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 been diluted in the past year, with total shares outstanding growing by 12%.


Top Shareholders

Company Information

Mindteck (India) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mindteck (India) Limited
  • Ticker: 517344
  • Exchange: BSE
  • Founded: 1991
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹352.883m
  • Shares outstanding: 25.21m
  • Website: https://www.mindteck.com

Number of Employees


Location

  • Mindteck (India) Limited
  • AMR Tech Park
  • Block-1, 3rd Floor
  • Bengaluru
  • Karnataka
  • 560068
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
517344BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2003
MINDTECKNSEI (National Stock Exchange of India)YesEquity SharesININRDec 2003

Biography

Mindteck (India) Limited provides product engineering and information technology (IT) services in the United States, India, and internationally. The company offers smart grid communication services, OEM solutions, data center and in-premises energy management services, and IT application solutions; embedded design services, embedded verification and validation services, and system solutions; product lifecycle management (PLM) consulting, advisory, system implementation and administration, system validation/testing, program management, and system integration/data migration services; and SAP services. It also provides mobile strategy consulting, user experience, design and development, and mobility testing services; hybrid cloud appliance, interoperable cloud storage, and business data analytics services; business intelligence, data/information management, and big data services, as well as advanced analytics and analytics on unstructured data; and IT security services. In addition, it offers system and integration, specialized, software product, and cloud based testing services, as well as test strategy, automation, and infrastructure services; product engineering, re-engineering, and sustenance services; data center transformation and IT infrastructure management services; custom application development, application maintenance and management, legacy modernization, and performance engineering and enhancement services; and application and enterprise systems integration, business process management, packaged application, and service oriented architecture services. Further, it sources and deploys IT talent; and smart city solutions. It serves start-ups, universities, and government entities. The company was formerly known as Hinditron Informatics Limited and changed its name to Mindteck (India) Limited in September 1999. The company was founded in 1991 and is headquartered in Bengaluru, India. Mindteck (India) Limited is a subsidiary of Embtech Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 13:07
End of Day Share Price2020/03/31 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.