BSE:531616

Stock Analysis Report

Starcom Information Technology

Executive Summary

Starcom Information Technology Limited provides data quality, business intelligence, and data analytics solutions in India.

Risk Analysis

Interest payments are not well covered by earnings

Does not have a meaningful market cap (₹542M)

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Questionable track record with imperfect balance sheet.

Share Price & News

How has Starcom Information Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 531616's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-18.4%

531616

-4.3%

IN Software

-1.5%

IN Market


1 Year Return

-63.7%

531616

-16.0%

IN Software

10.7%

IN Market

Return vs Industry: 531616 underperformed the Indian Software industry which returned -15.9% over the past year.

Return vs Market: 531616 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

531616IndustryMarket
7 Day-18.4%-4.3%-1.5%
30 Day-47.7%-3.8%-2.7%
90 Day-0.6%-1.8%1.3%
1 Year-63.7%-63.7%-15.2%-16.0%12.7%10.7%
3 Year-66.7%-66.7%-15.3%-22.2%22.0%15.1%
5 Year-64.0%-64.0%-0.6%-15.0%34.5%22.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Starcom Information Technology undervalued compared to its fair value and its price relative to the market?

699.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 531616's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 531616's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 531616 is poor value based on its PE Ratio (699.9x) compared to the Software industry average (11.7x).

PE vs Market: 531616 is poor value based on its PE Ratio (699.9x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 531616's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 531616 is overvalued based on its PB Ratio (22.3x) compared to the IN Software industry average (1x).


Next Steps

Future Growth

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

15.7%

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 Starcom Information Technology 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 Starcom Information Technology performed over the past 5 years?

40.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 531616 has high quality earnings.

Growing Profit Margin: 531616's current net profit margins (0.6%) are lower than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: 531616 has become profitable over the past 5 years, growing earnings by 40.4% per year.

Accelerating Growth: 531616's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 531616 had negative earnings growth (-25.9%) over the past year, making it difficult to compare to the Software industry average (-4.6%).


Return on Equity

High ROE: 531616's Return on Equity (3.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Starcom Information Technology's financial position?


Financial Position Analysis

Short Term Liabilities: 531616's short term assets (₹123.7M) do not cover its short term liabilities (₹202.1M).

Long Term Liabilities: 531616's short term assets (₹123.7M) do not cover its long term liabilities (₹148.5M).


Debt to Equity History and Analysis

Debt Level: 531616's debt to equity ratio (563.2%) is considered high.

Reducing Debt: 531616's debt to equity ratio has reduced from 1665.9% to 563.2% over the past 5 years.


Balance Sheet

Inventory Level: 531616 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 531616's debt is not covered by short term assets (assets are 0.9x 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: 531616 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 531616 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Starcom Information Technology's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.6%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 531616's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 531616'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 531616's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 531616'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 531616'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?

3.5yrs

Average management tenure


CEO

Ziaulla Sheriff (79yo)

8.3yrs

Tenure

0

Mr. Ziaulla Sheriff has been the Managing Director of Starcom Information Technology Ltd. since November 2, 2011 and served as its Compliance Officer since March 2011. Mr. Sheriff has been Chairman and Dir ...


Leadership Team

NamePositionTenureCompensationOwnership
Ziaulla Sheriff
Chairman & MD8.3yrsno data75% 406.2m
Syed Mujeeb
Chief Operating Officer0yrsno datano data
Nidhi Sharma
Company Secretary & Compliance Officer3.5yrs₹474.23kno data
Mehraj Lanker
Chief Marketing Officer0yrsno data0.040% 216.6k
Ashfaq Ibrahim
Chief Sales Officer0yrsno datano data
Amuthukkiniyavel Manoharan
Vice President0yrsno datano data
Shaik Ahmed
Associate Vice President of Technology0yrsno datano data
Belur Gururaja Nagaraja
Associate Vice President of Sales0yrsno datano data
Mukhtar Ahmad
Chief Financial Officer2.9yrsno datano data

3.5yrs

Average Tenure

50yo

Average Age

Experienced Management: 531616's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ziaulla Sheriff
Chairman & MD8.3yrsno data75% 406.2m
Maddur Gundurao Kumar
Independent Director8.5yrsno datano data
Sayeeda Ahmed
Non Executive Director5.3yrsno datano data
Mohammad Khan
Independent Director2.9yrsno datano data

6.9yrs

Average Tenure

68.5yo

Average Age

Experienced Board: 531616's board of directors are considered experienced (6.9 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 3.5%.


Top Shareholders

Company Information

Starcom Information Technology Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Starcom Information Technology Limited
  • Ticker: 531616
  • Exchange: BSE
  • Founded: 1995
  • Industry: Application Software
  • Sector: Software
  • Market Cap: ₹541.565m
  • Shares outstanding: 5.00m
  • Website: https://www.starcominfotech.com

Number of Employees


Location

  • Starcom Information Technology Limited
  • 88, Times Square
  • M.G. Road
  • Bengaluru
  • Karnataka
  • 560001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
531616BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 2009

Biography

Starcom Information Technology Limited provides data quality, business intelligence, and data analytics solutions in India. The company operates through two segments, Test, Measurement & Embedded solutions for Educational sector; and Data Quality, Statistical and Analytics Softwares. Its products include STAR DQ, a real time enterprise solution for data cleansing, de-duping, clustering, and enriching the data; and STAR BI, a business intelligence software that allows business users to discover trends, track KPIs, and visualize data. The company also offers STAR 360, a platform that serves as single point of contact for front-end digital systems, CRM systems, etc. to deliver the 360 degrees view of the customer. It serves retail, education, telecom, healthcare, and government sectors. The company was formerly known as Jatia Finance Limited and changed its name to Starcom Information Technology Limited in December 2008. Starcom Information Technology Limited was incorporated in 1995 and is headquartered in Bengaluru, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 13:01
End of Day Share Price2020/02/18 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.