BSE:532972

Stock Analysis Report

Executive Summary

Sankhya Infotech Limited, together with its subsidiaries, provides simulation and training solutions in India and internationally.

Rewards

Trading at 89.5% below its fair value

Risk Analysis

Earnings have declined by -55.78% per year over past 5 years

Does not have a meaningful market cap (₹48M)

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 532972's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.1%

532972

-4.3%

IN Software

-0.8%

IN Market


1 Year Return

-92.8%

532972

-15.9%

IN Software

11.1%

IN Market

Return vs Industry: 532972 underperformed the Indian Software industry which returned -16.2% over the past year.

Return vs Market: 532972 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

532972IndustryMarket
7 Day-6.1%-4.3%-0.8%
30 Day-13.9%-3.2%-2.3%
90 Day-27.2%-0.5%2.1%
1 Year-92.8%-92.8%-15.1%-15.9%13.1%11.1%
3 Year-94.1%-94.1%-14.5%-21.4%22.9%16.2%
5 Year-79.9%-79.9%-0.4%-14.5%34.9%22.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sankhya Infotech 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: 532972 (₹3.21) is trading below our estimate of fair value (₹30.61)

Significantly Below Fair Value: 532972 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 532972 is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: 532972 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 532972's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532972 is good value based on its PB Ratio (0x) compared to the IN Software industry average (1x).


Next Steps

Future Growth

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

12.1%

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 Sankhya Infotech 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 Sankhya Infotech performed over the past 5 years?

-55.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532972 is currently unprofitable.

Growing Profit Margin: 532972 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 532972 is unprofitable, and losses have increased over the past 5 years at a rate of -55.8% per year.

Accelerating Growth: Unable to compare 532972's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 532972 is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (-4.6%).


Return on Equity

High ROE: 532972 has a negative Return on Equity (-34.87%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sankhya Infotech's financial position?


Financial Position Analysis

Short Term Liabilities: 532972's short term assets (₹698.2M) exceed its short term liabilities (₹464.0M).

Long Term Liabilities: 532972's short term assets (₹698.2M) exceed its long term liabilities (₹69.1M).


Debt to Equity History and Analysis

Debt Level: 532972's debt to equity ratio (28.3%) is considered satisfactory.

Reducing Debt: 532972's debt to equity ratio has reduced from 44.9% to 28.3% over the past 5 years.


Balance Sheet

Inventory Level: 532972 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 532972's debt is covered by short term assets (assets are 2.3x 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: Insufficient data to determine if 532972 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 532972 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 532972's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 532972'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 532972's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 532972's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 532972 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 532972'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?

2.3yrs

Average management tenure


CEO

Nadupalli Krishna (56yo)

14.2yrs

Tenure

₹3,812,800

Compensation

Mr. Nadupalli Sridhar Krishna, M. Sc., has been the Managing Director at Sankhya Infotech Ltd. since December 1, 2005. Mr. Sridhar has been the Chairman at Sankhya Infotech Ltd. since September 20, 2010. H ...


CEO Compensation Analysis

Compensation vs Market: Nadupalli's total compensation ($USD53.32K) is about average for companies of similar size in the Indian market ($USD50.21K).

Compensation vs Earnings: Nadupalli's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Nadupalli Krishna
Chairman & MD14.2yrs₹3.81m3.83% 1.8m
Munmun Baid
Company Secretary & Compliance Officer1.3yrs₹350.00kno data
N. Rao
Co-Founder and Chairman Emeritus0yrsno data1.83% 873.1k
N. Parvatavardhani
Co-Founder0yrsno data5.23% 2.5m
B. Rao
Chief Technology Officer and Head of R&D0yrsno datano data
Rakesh Jayal
Chief Marketing Officer0yrs₹3.60mno data
Vinay Sagar
Head of Simulation & Virtual Training0yrsno datano data
A. Prasad
Head of Education & Capability Development0yrsno datano data
Ravindran Govindan
Member of Advisory Board2.3yrsno datano data

2.3yrs

Average Tenure

68yo

Average Age

Experienced Management: 532972's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nadupalli Krishna
Chairman & MD14.2yrs₹3.81m3.83% 1.8m
N. Rao
Co-Founder and Chairman Emeritus0yrsno data1.83% 873.1k
Ravindran Govindan
Member of Advisory Board2.3yrsno datano data
Partha Pudhota
Independent Non-Executive Director3.8yrsno data13.02% 6.2m
Ramamohan Yarragudi
Additional Non-Executive Independent Director0.6yrsno datano data
Putcha Sarada
Independent Director0.5yrsno datano data

2.3yrs

Average Tenure

51yo

Average Age

Experienced Board: 532972's board of directors are not considered experienced ( 2.3 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

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


Key Information

  • Name: Sankhya Infotech Limited
  • Ticker: 532972
  • Exchange: BSE
  • Founded: 1997
  • Industry: Application Software
  • Sector: Software
  • Market Cap: ₹47.732m
  • Shares outstanding: 14.60m
  • Website: https://www.sankhya.net

Number of Employees


Location

  • Sankhya Infotech Limited
  • V Satyanarayana House, House No-1-112/63
  • 2nd Floor
  • Hyderabad
  • Andhra Pradesh
  • 500049
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532972BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2008

Biography

Sankhya Infotech Limited, together with its subsidiaries, provides simulation and training solutions in India and internationally. It operates through two segments, Defense and Non-Defense. The company’s products include SILICON TMIS, a training management information system for managing and automating various aspects of training programs; SILICON LMS, a learning management system that combines synchronous and asynchronous learning methods; SILICON-QT, an authoring, publishing, delivery, and analysis product for administering online questions, tests, exams, and surveys; and SILICON LCMS, a learning content management system for the design, development, and maintenance of e-Learning course content. It also provides IRMAO, an integrated resource planning, management, and tracking system for airline operations; and Sakai Collaborative Learning Environment that provides course management, assessment and grade book, collaboration, and enterprise integration. In addition, the company offers custom content development, virtual maintenance training, simulation, technical documentation, consulting, facility management, and decision support system services. It serves clients in aerospace, defense, banking, insurance, financial service, transportation, energy, and higher education sectors. Sankhya Infotech Limited was founded in 1997 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 Analysis2020/02/17 12:48
End of Day Share Price2020/02/17 00:00
Earnings2019/06/30
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.