BSE:517536

Stock Analysis Report

Onward Technologies

Executive Summary

Onward Technologies Limited provides mechanical engineering design and IT consulting services in India and internationally.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 517536's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.5%

517536

2.0%

IN IT

-3.0%

IN Market


1 Year Return

-35.1%

517536

-15.3%

IN IT

-29.2%

IN Market

Return vs Industry: 517536 underperformed the Indian IT industry which returned -15.3% over the past year.

Return vs Market: 517536 underperformed the Indian Market which returned -29.2% over the past year.


Shareholder returns

517536IndustryMarket
7 Day2.5%2.0%-3.0%
30 Day-24.4%-19.0%-26.9%
90 Day-29.6%-18.6%-28.5%
1 Year-33.6%-35.1%-12.6%-15.3%-27.7%-29.2%
3 Year-42.0%-44.7%35.3%27.0%-15.2%-19.9%
5 Year-5.4%-11.0%30.5%18.0%-3.1%-8.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 517536 (₹44.5) is trading below our estimate of fair value (₹167.83)

Significantly Below Fair Value: 517536 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 517536 is good value based on its PE Ratio (5.7x) compared to the IT industry average (7x).

PE vs Market: 517536 is good value based on its PE Ratio (5.7x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 517536's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 517536 is overvalued based on its PB Ratio (1.1x) compared to the IN IT industry average (0.7x).


Next Steps

Future Growth

How is Onward Technologies 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 Onward Technologies 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 Onward Technologies performed over the past 5 years?

34.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 517536 has high quality earnings.

Growing Profit Margin: 517536's current net profit margins (4.6%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: 517536 has become profitable over the past 5 years, growing earnings by 34.8% per year.

Accelerating Growth: 517536's earnings growth over the past year (53.7%) exceeds its 5-year average (34.8% per year).

Earnings vs Industry: 517536 earnings growth over the past year (53.7%) exceeded the IT industry 7.2%.


Return on Equity

High ROE: 517536's Return on Equity (19%) is considered low.


Next Steps

Financial Health

How is Onward Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: 517536's short term assets (₹712.6M) exceed its short term liabilities (₹435.9M).

Long Term Liabilities: 517536's short term assets (₹712.6M) exceed its long term liabilities (₹161.1M).


Debt to Equity History and Analysis

Debt Level: 517536's debt to equity ratio (19.4%) is considered satisfactory.

Reducing Debt: 517536's debt to equity ratio has reduced from 118.7% to 19.4% over the past 5 years.

Debt Coverage: 517536's debt is well covered by operating cash flow (220.7%).

Interest Coverage: 517536's interest payments on its debt are well covered by EBIT (6.8x coverage).


Balance Sheet

Inventory Level: 517536 has a high level of physical assets or inventory.

Debt Coverage by Assets: 517536's debt is covered by short term assets (assets are 5.6x debt).


Next Steps

Dividend

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

3.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 517536's dividend (3.37%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: 517536's dividend (3.37%) is low compared to the top 25% of dividend payers in the Indian market (4.18%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 517536 has been paying a dividend for less than 10 years.

Growing Dividend: 517536's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.2%), 517536's dividend payments are well covered by earnings.


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?

1.2yrs

Average management tenure


CEO

Jigar Mehta (39yo)

3.83s

Tenure

₹8,400,016

Compensation

Mr. Jigar Harish Mehta has been the Managing Director of Onward Technologies Limited since May 16, 2016. Mr. Mehta served as the Chief Operating Officer of Onward Technologies Limited until May 16, 2016 an ...


CEO Compensation Analysis

Compensation vs Market: Jigar's total compensation ($USD111.45K) is above average for companies of similar size in the Indian market ($USD48.50K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Harish Mehta
Executive Chairman3.83yrs₹16.80m1.35% 9.6m
Jigar Mehta
MD & Executive Director3.83yrs₹8.40m3.59% 25.6m
Devanand Ramandasani
Chief Financial Officer0.42yrno datano data
Dimple Chauhan
Company Secretary & Compliance Officer1.17yrsno datano data
B. Kaustubhan
Executive Vice Presidentno datano datano data
Sudhir Badamikar
Executiveno datano datano data

1.2yrs

Average Tenure

Experienced Management: 517536's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Harish Mehta
Executive Chairman3.83yrs₹16.80m1.35% 9.6m
Jigar Mehta
MD & Executive Director3.83yrs₹8.40m3.59% 25.6m
Prachi Mehta
Women Non-Executive Director5yrs₹320.00k0.91% 6.5m
Rahul Rathi
Non-Executive Independent Director2.92yrs₹255.00kno data
Pranay Vakil
Non-Executive Independent Director7.17yrs₹505.00kno data
Nandkumar Pradhan
Non-Executive Independent Director7.17yrs₹510.00kno data
Parish Meghani
Non-Executive Independent Director2.83yrs₹530.00kno data

3.8yrs

Average Tenure

47yo

Average Age

Experienced Board: 517536's board of directors are considered experienced (3.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 517536 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Onward Technologies Limited
  • Ticker: 517536
  • Exchange: BSE
  • Founded: 1991
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹713.894m
  • Shares outstanding: 16.04m
  • Website: https://www.onwardgroup.com

Number of Employees


Location

  • Onward Technologies Limited
  • Sterling Centre
  • 2nd Floor
  • Mumbai
  • Maharashtra
  • 400018
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
517536BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 1998
ONWARDTECNSEI (National Stock Exchange of India)YesEquity SharesININRDec 1998

Biography

Onward Technologies Limited provides mechanical engineering design and IT consulting services in India and internationally. It offers product engineering, manufacturing engineering, simulation engineering, and engineering change management services; electronics and embedded systems; electrical and electronics solutions; and technical publications. The company also provides IT consulting services comprising software product engineering, big data and analytics, application development and maintenance, and infrastructure management support services; and enterprise software, enterprise mobility, and digital transformation solutions, as well as social, mobile, analytics, and cloud solutions. In addition, it offers product sales and support services; staffing services, such as contract-to-hire; and robotic process automation and managed services for infrastructure, applications, and databases. The company serves automotive; off highway and agri equipment; industrial equipment and machinery; medical equipment and healthcare; banking and financial services; e-governance and education; aerospace; consumer goods; and insurance industries. Onward Technologies Limited was founded in 1991 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 12:50
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.