BSE:531621

Stock Analysis Report

Centerac Technologies

Executive Summary

Centerac Technologies Limited provides IT services worldwide.

Rewards

Became profitable this year

Risk Analysis

Shares are highly illiquid

High level of non-cash earnings

Makes less than USD$1m in revenue (₹2M)

Does not have a meaningful market cap (₹36M)

+ 1 more risk


Snowflake Analysis

Flawless balance sheet with questionable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 531621's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.7%

531621

1.3%

IN IT

-0.6%

IN Market


1 Year Return

n/a

531621

9.5%

IN IT

11.1%

IN Market

Return vs Industry: Insufficient data to determine how 531621 performed against the Indian IT industry.

Return vs Market: Insufficient data to determine how 531621 performed against the Indian Market.


Shareholder returns

531621IndustryMarket
7 Day-2.7%1.3%-0.6%
30 Day-3.5%2.4%-0.5%
90 Dayn/a6.4%3.0%
1 Yearn/a12.4%9.5%13.1%11.1%
3 Year167.5%167.5%75.5%65.2%24.5%18.0%
5 Year91.3%91.3%57.1%42.6%37.8%25.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

79.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 531621 (₹3.29) is trading above our estimate of fair value (₹0.19)

Significantly Below Fair Value: 531621 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 531621 is poor value based on its PE Ratio (79.3x) compared to the IT industry average (11.2x).

PE vs Market: 531621 is poor value based on its PE Ratio (79.3x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 531621's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 531621 is overvalued based on its PB Ratio (46.6x) compared to the IN IT industry average (0.9x).


Next Steps

Future Growth

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

25.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 531621 has a high level of non-cash earnings.

Growing Profit Margin: 531621 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 531621 has become profitable over the past 5 years, growing earnings by 25.4% per year.

Accelerating Growth: 531621 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 531621 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: Whilst 531621's Return on Equity (90.32%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Centerac Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: 531621's short term assets (₹1.1M) exceed its short term liabilities (₹759.0K).

Long Term Liabilities: 531621 has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: 531621 is debt free.

Reducing Debt: 531621 had no debt 5 years ago.


Balance Sheet

Inventory Level: 531621 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 531621'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: 531621 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: Insufficient data to determine if 531621 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.6%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 531621's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 531621'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 531621's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 531621'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 531621'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?

1.8yrs

Average board tenure


CEO

Ashwani Singh (48yo)

1.8yrs

Tenure

0

Mr. Ashwani Kumar Singh has been Chairman of the Board and Managing Director of Centerac Technologies Ltd since May 23, 2018. Mr. Singh has been Chief Financial Officer of Centerac Technologies Limited sin ...


Board Members

NamePositionTenureCompensationOwnership
Ashwani Singh
Chairman1.8yrsno data72.57% 26.3m
Ravi Iyengar
Non-Executive Independent Director1.8yrsno datano data
Anupama Kumar Singh
Non-Executive & Women Director1.8yrsno datano data
Rajarshi Roy
Non-executive Independent Director0.8yrsno datano data

1.8yrs

Average Tenure

49yo

Average Age

Experienced Board: 531621's board of directors are not considered experienced ( 1.8 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 been diluted in the past year, with total shares outstanding growing by 9.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Centerac Technologies Limited
  • Ticker: 531621
  • Exchange: BSE
  • Founded: 1992
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹36.304m
  • Shares outstanding: 11.03m
  • Website: https://www.centerac.com

Number of Employees


Location

  • Centerac Technologies Limited
  • Alpha 201
  • Hiranandani Powai
  • Mumbai
  • Maharashtra
  • 400076
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
531621BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2000

Biography

Centerac Technologies Limited provides IT services worldwide. It offers IT and IT-enabled services, which include digital strategy advisory, customer centric design, technology consulting, IT consulting, custom application design, development, reengineering and maintenance, systems integration, package implementation, global infrastructure services, analytics services, business process services, research and development, and hardware and software design to enterprises. The company was formerly known as Ez-Comm Trade Technologies Limited and changed its name to Centerac Technologies Limited in June 2012. Centerac Technologies Limited was founded in 1992 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 Analysis2020/02/20 12:45
End of Day Share Price2020/02/17 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.