BSE:530713

Stock Analysis Report

Executive Summary

Ajel Limited provides IT consulting and software development services in the United States and India.


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 530713 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

530713

-0.5%

IN IT

-0.7%

IN Market


1 Year Return

-38.1%

530713

8.6%

IN IT

10.0%

IN Market

Return vs Industry: 530713 underperformed the Indian IT industry which returned 8.6% over the past year.

Return vs Market: 530713 underperformed the Indian Market which returned 10% over the past year.


Shareholder returns

530713IndustryMarket
7 Day0%-0.5%-0.7%
30 Day-9.5%1.6%-0.3%
90 Day-13.9%7.6%3.2%
1 Year-38.1%-38.1%11.4%8.6%12.0%10.0%
3 Year2.9%2.9%70.2%60.3%23.9%17.1%
5 Year5.4%5.4%57.0%42.5%38.3%25.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

4.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 530713's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 530713's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 530713 is good value based on its PE Ratio (4x) compared to the IT industry average (10.8x).

PE vs Market: 530713 is good value based on its PE Ratio (4x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 530713's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 530713 is good value based on its PB Ratio (0.3x) compared to the IN IT industry average (0.9x).


Next Steps

Future Growth

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

9.3%

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 Ajel 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 Ajel performed over the past 5 years?

0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 530713 has a large one-off gain of ₹28.3M impacting its December 31 2019 financial results.

Growing Profit Margin: 530713 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 530713 has become profitable over the past 5 years, growing earnings by 0.5% per year.

Accelerating Growth: 530713 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 530713 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: 530713's Return on Equity (8.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ajel's financial position?


Financial Position Analysis

Short Term Liabilities: 530713's short term assets (₹61.5M) exceed its short term liabilities (₹13.9M).

Long Term Liabilities: 530713's short term assets (₹61.5M) do not cover its long term liabilities (₹74.8M).


Debt to Equity History and Analysis

Debt Level: 530713's debt to equity ratio (36%) is considered satisfactory.

Reducing Debt: 530713's debt to equity ratio has reduced from 49.9% to 36% over the past 5 years.


Balance Sheet

Inventory Level: 530713 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 530713's debt is covered by short term assets (assets are 1.3x 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: 530713 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: Insufficient data to determine if 530713 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 530713's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 530713'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 530713's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 530713'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 530713'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?

1.0yrs

Average board tenure


CEO

Srinivasa Arikatla (50yo)

11.3yrs

Tenure

Mr. Srinivasa Reddy Arikatla serves as Managing Director of Ajel Infotech Ltd. since October 1, 2008 and its Chairman since August 29, 2012. Mr. Arikatla served as Vice Chairman of Ajel Infotech Ltd. from  ...


Board Members

NamePositionTenureCompensationOwnership
Srinivasa Arikatla
Chairman & MD11.3yrsno data35.93% 16.3m
Harshana Antharaji
Whole Time Executive Director3.4yrsno datano data
Venkat Sureddy
Non Executive Director3.6yrsno datano data
Hariharanadha Kallepalli
Additional Independent Director1.1yrsno datano data
Narendra Parupalli
Additional Independent Director0.8yrsno datano data
Sumanth John Kumaraswamy
Additional Independent Director0.5yrsno datano data
Sridhar Gireddy
Independent Director0.3yrsno data7.74% 3.5m
- Sirangivi
Independent Director0.3yrsno datano data

1.0yrs

Average Tenure

38yo

Average Age

Experienced Board: 530713's board of directors are not considered experienced ( 1 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: 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

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


Key Information

  • Name: Ajel Limited
  • Ticker: 530713
  • Exchange: BSE
  • Founded: 1994
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹45.319m
  • Shares outstanding: 11.65m
  • Website: https://null

Location

  • Ajel Limited
  • 804, Manjeera Majestic Corporate
  • JNTU-Hitech City Road
  • Hyderabad
  • Andhra Pradesh
  • 500085
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
530713BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2000

Biography

Ajel Limited provides IT consulting and software development services in the United States and India. The company offers Dynamic Enterprise Management, a professional services business management solution that provides financial and operational functionality, such as consultant resource management, business intelligence, reporting, payroll, human resource management system, and financials and sales force automation to growing and midsize organizations. It also provides infrastructure management, cloud computing, networking, and enterprise solutions; and professional, and application development and management services. The company serves commercial and public sectors, and utility companies. Ajel Limited was founded in 1994 and is based in Hyderabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 12:45
End of Day Share Price2020/02/13 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.