BSE:532402

Stock Analysis Report

USG Tech Solutions

Executive Summary

USG Tech Solutions Limited provides various IT solutions and software projects development services in India.

Risk Analysis

Earnings have declined by -8.5% per year over past 5 years

Debt is not well covered by operating cash flow

Makes less than USD$1m in revenue (₹3M)

Does not have a meaningful market cap (₹99M)



Snowflake Analysis

Worrying balance sheet with weak fundamentals.

Share Price & News

How has USG Tech Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532402 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

532402

1.8%

IN IT

-0.8%

IN Market


1 Year Return

-37.5%

532402

7.9%

IN IT

11.1%

IN Market

Return vs Industry: 532402 underperformed the Indian IT industry which returned 5.7% over the past year.

Return vs Market: 532402 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

532402IndustryMarket
7 Day0%1.8%-0.8%
30 Day0%0.8%-2.3%
90 Day-3.8%6.3%2.1%
1 Year-37.5%-37.5%10.7%7.9%13.1%11.1%
3 Year-32.2%-32.2%71.1%61.1%22.9%16.2%
5 Year-26.7%-26.7%57.0%42.5%34.9%22.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is USG Tech Solutions undervalued compared to its fair value and its price relative to the market?

20.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 532402's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 532402's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 532402 is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: 532402 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 532402's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532402 is overvalued based on its PB Ratio (1x) compared to the IN IT industry average (0.9x).


Next Steps

Future Growth

How is USG Tech Solutions 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 USG Tech Solutions 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 USG Tech Solutions performed over the past 5 years?

-8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532402 is currently unprofitable.

Growing Profit Margin: 532402 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 532402 is unprofitable, and losses have increased over the past 5 years at a rate of -8.5% per year.

Accelerating Growth: Unable to compare 532402's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 532402 is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (7.4%).


Return on Equity

High ROE: 532402 has a negative Return on Equity (-3.06%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is USG Tech Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: 532402's short term assets (₹89.6M) exceed its short term liabilities (₹3.9M).

Long Term Liabilities: 532402's short term assets (₹89.6M) do not cover its long term liabilities (₹485.6M).


Debt to Equity History and Analysis

Debt Level: 532402's debt to equity ratio (117.1%) is considered high.

Reducing Debt: 532402's debt to equity ratio has increased from 24.9% to 117.1% over the past 5 years.


Balance Sheet

Inventory Level: 532402 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 532402's debt is not covered by short term assets (assets are 0.7x 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: 532402 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: Insufficient data to determine if 532402 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is USG Tech Solutions's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.5%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 532402's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 532402'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 532402's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 532402'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 532402'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 management tenure


CEO

Servesh Gupta (39yo)

1.8yrs

Tenure

0

Mr. Servesh Gupta serves as Managing Director and Additional Executive Director of USG Tech Solutions Limited since May 30, 2018 and serves as its Chairman. Mr. Gupta served as Whole Time Director of USG T ...


CEO Compensation Analysis

Compensation vs Market: Servesh's total compensation ($USD0.00) is below average for companies of similar size in the Indian market ($USD50.21K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Servesh Gupta
MD & Chairman1.8yrsno data4.81% 4.7m
Manish Kumar
CFO & Director0yrsno datano data
Ashima Gupta
Executive Director2.3yrsno datano data
Parteek Goyal
Compliance Officer0.4yrsno datano data
Gagandeep Kalra
Assistant Vice President of Business Development & Sales0yrsno datano data
Shaiphali Kapoor
0yrsno datano data

1.8yrs

Average Tenure

Experienced Management: 532402's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Servesh Gupta
MD & Chairman1.8yrsno data4.81% 4.7m
Manish Kumar
CFO & Director0yrsno datano data
Ashima Gupta
Executive Director2.3yrsno datano data
Nirmal Garg
Independent Director4.3yrsno datano data
Deepak Bansal
Independent Director2.9yrsno datano data

2.9yrs

Average Tenure

39yo

Average Age

Experienced Board: 532402's board of directors are not considered experienced ( 2.9 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

USG Tech Solutions Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: USG Tech Solutions Limited
  • Ticker: 532402
  • Exchange: BSE
  • Founded: 1999
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹98.536m
  • Shares outstanding: 39.41m
  • Website: https://www.usgtechsolutions.com

Number of Employees


Location

  • USG Tech Solutions Limited
  • Flat-11-B Shiv Apartments
  • 7, Raj Narain Road
  • New Delhi
  • Delhi
  • 110054
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532402BSE (Mumbai Stock Exchange)YesEquity SharesININRJun 2011

Biography

USG Tech Solutions Limited provides various IT solutions and software projects development services in India. The company offers solutions for retailers, including loyalty and rewards, and promotions solutions; and solutions for corporates, such as electronic cash registers system (ECR) integration, customer service, fleet management, and gift and prepaid card solutions. It also provides app based sales and collections solution to monitor, manage, and schedule sales team actions in real time for the integrated retail businesses; and POS management and E2E merchant management solutions. In addition, the company offers application development, data information management, data analytics, managed, product engineering, mobility, and business process re-engineering services, as well as ECR, payment, platform, real time data analytics, and information integration services. The company was formerly known as V & K Softech Limited and changed its name to USG Tech Solutions Limited in August 2011. USG Tech Solutions Limited was incorporated in 1999 and is based in New Delhi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 12:31
End of Day Share Price2020/01/10 00:00
Earnings2019/09/30
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.