BSE:532663

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Sasken Technologies

Executive Summary

Sasken Technologies Limited provides product engineering and digital transformation services worldwide. More Details


Snowflake Analysis

Flawless balance sheet, good value and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 532663 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 532663's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-2.6%

532663

4.4%

IN Software

2.3%

IN Market


1 Year Return

3.1%

532663

44.6%

IN Software

8.9%

IN Market

Return vs Industry: 532663 underperformed the Indian Software industry which returned 44.6% over the past year.

Return vs Market: 532663 underperformed the Indian Market which returned 8.9% over the past year.


Shareholder returns

532663IndustryMarket
7 Day-2.6%4.4%2.3%
30 Day-2.5%3.8%8.9%
90 Day8.1%19.5%10.2%
1 Year15.8%3.1%50.9%44.6%11.0%8.9%
3 Year28.1%10.1%16.3%4.8%6.2%1.0%
5 Year116.5%69.5%15.5%-0.2%53.0%41.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sasken 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: 532663 (₹663.55) is trading below our estimate of fair value (₹1555.52)

Significantly Below Fair Value: 532663 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 532663 is good value based on its PE Ratio (12x) compared to the IN Software industry average (13.5x).

PE vs Market: 532663 is good value based on its PE Ratio (12x) compared to the Indian market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: 532663 is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: 532663 is overvalued based on its PB Ratio (1.9x) compared to the IN Software industry average (1.4x).


Next Steps

Future Growth

How is Sasken Technologies forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

2.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532663's forecast earnings growth (2.4% per year) is below the savings rate (7.2%).

Earnings vs Market: 532663's earnings (2.4% per year) are forecast to grow slower than the Indian market (24.2% per year).

High Growth Earnings: 532663's earnings are forecast to grow, but not significantly.

Revenue vs Market: 532663's revenue (6.1% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: 532663's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 532663's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sasken Technologies performed over the past 5 years?

-10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532663 has high quality earnings.

Growing Profit Margin: 532663's current net profit margins (18.7%) are higher than last year (17.7%).


Past Earnings Growth Analysis

Earnings Trend: 532663's earnings have declined by 10.8% per year over the past 5 years.

Accelerating Growth: 532663's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 532663 had negative earnings growth (-7.7%) over the past year, making it difficult to compare to the Software industry average (18%).


Return on Equity

High ROE: 532663's Return on Equity (15.8%) is considered low.


Next Steps

Financial Health

How is Sasken Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: 532663's short term assets (₹2.9B) exceed its short term liabilities (₹944.0M).

Long Term Liabilities: 532663's short term assets (₹2.9B) exceed its long term liabilities (₹105.0M).


Debt to Equity History and Analysis

Debt Level: 532663 is debt free.

Reducing Debt: 532663 had no debt 5 years ago.

Debt Coverage: 532663 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 532663 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

3.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 532663's dividend (3.77%) is higher than the bottom 25% of dividend payers in the Indian market (0.53%).

High Dividend: 532663's dividend (3.77%) is in the top 25% of dividend payers in the Indian market (2.15%)


Stability and Growth of Payments

Stable Dividend: 532663's dividend payments have been volatile in the past 10 years.

Growing Dividend: 532663's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36%), 532663'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?

1.8yrs

Average management tenure


CEO

Rajiv Mody (62 yo)

no data

Tenure

₹17,000,000

Compensation

Mr. Rajiv Chandrakant Mody co-founded Sasken Technologies Limited (formerly, Sasken Communication Technologies Ltd.) in 1989 and serves as its Chairman, Chief Executive Officer and Managing Director. Mr. M...


CEO Compensation Analysis

Compensation vs Market: Rajiv's total compensation ($USD229.62K) is above average for companies of similar size in the Indian market ($USD50.81K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Rajiv Mody
Co-Founderno data₹17.00m10.37%
₹ 1.0b
Neeta Revankar
CFO & Whole-Time Director10.58yrs₹25.01m0.46%
₹ 46.8m
Srinivas Prasad
Associate VP8.25yrs₹4.71m0.017%
₹ 1.7m
Ashwin Ramachandra
Head of Engineering Research & Development Services and VP4yrs₹9.07mno data
- Priyaranjan
VP & Head of Business Operationsno data₹9.43mno data
Krishna Kumar
Head of Global Delivery & VP4.17yrs₹8.23mno data
Satish Burli
VP & Head of Product Engineering Services0.92yr₹7.42mno data
Gajendra Chowhan
Senior VP & Head of Business Lines1.83yrs₹7.00mno data
Suresh Subramanian
Vice President of Digital Practiceno data₹6.10mno data
Edwin Moses
President & COO0.25yrno datano data
Swaminathan Krishnan
VP and Head of Marketing & Communicationsno datano datano data
Anu Zachariah
Chief People Officer0.83yrno datano data

1.8yrs

Average Tenure

50yo

Average Age

Experienced Management: 532663's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Rajiv Mody
Co-Founderno data₹17.00m10.37%
₹ 1.0b
Neeta Revankar
CFO & Whole-Time Director10.58yrs₹25.01m0.46%
₹ 46.8m
Bharat Patel
Independent Director11.33yrs₹2.01m0.11%
₹ 11.6m
Sanjay Shah
Independent Director15.42yrs₹1.07m0.023%
₹ 2.3m
Gangadharan Venkatesh
Non-Executive Director15.83yrs₹1.15m0.97%
₹ 98.2m
Pranabh Mody
Non-Executive Director29.33yrs₹490.00k1.91%
₹ 193.0m
Sunirmal Talukdar
Independent Director4.33yrs₹2.69mno data
Madhu Khatri
Woman Independent Director0.67yrno datano data

11.3yrs

Average Tenure

58yo

Average Age

Experienced Board: 532663's board of directors are seasoned and experienced ( 11.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 532663 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

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


Key Information

  • Name: Sasken Technologies Limited
  • Ticker: 532663
  • Exchange: BSE
  • Founded: 1989
  • Industry: Application Software
  • Sector: Software
  • Market Cap: ₹10.091b
  • Shares outstanding: 15.02m
  • Website: https://www.sasken.com

Number of Employees


Location

  • Sasken Technologies Limited
  • 139/25, Ring Road
  • Domlur
  • Bengaluru
  • Karnataka
  • 560071
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532663BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2005
SASKENNSEI (National Stock Exchange of India)YesEquity SharesININRSep 2005

Biography

Sasken Technologies Limited provides product engineering and digital transformation services worldwide. Its services include test automation, consultancy, test specifications, product testing, and applicat...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 12:53
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.