BSE:533056

Stock Analysis Report

Executive Summary

Vedavaag Systems Limited operates as an IT services company in India and internationally.


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

How has Vedavaag Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 533056's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

20.1%

533056

9.8%

IN Software

9.3%

IN Market


1 Year Return

-35.1%

533056

-45.5%

IN Software

-24.1%

IN Market

Return vs Industry: 533056 exceeded the Indian Software industry which returned -49.4% over the past year.

Return vs Market: 533056 underperformed the Indian Market which returned -31.7% over the past year.


Shareholder returns

533056IndustryMarket
7 Day20.1%9.8%9.3%
30 Day-3.3%-21.5%-12.6%
90 Day-32.3%-31.6%-24.1%
1 Year-32.7%-35.1%-44.6%-45.5%-22.6%-24.1%
3 Year-76.0%-78.0%-41.5%-46.5%-10.9%-15.8%
5 Year79.9%65.1%-33.5%-42.9%0.3%-4.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Vedavaag Systems undervalued compared to its fair value and its price relative to the market?

4.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 533056 (₹17.25) is trading above our estimate of fair value (₹11.78)

Significantly Below Fair Value: 533056 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 533056 is good value based on its PE Ratio (4.6x) compared to the Software industry average (7.3x).

PE vs Market: 533056 is good value based on its PE Ratio (4.6x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 533056's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 533056 is good value based on its PB Ratio (0.4x) compared to the IN Software industry average (0.7x).


Next Steps

Future Growth

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

14.4%

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 Vedavaag Systems 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 Vedavaag Systems performed over the past 5 years?

20.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 533056 has high quality earnings.

Growing Profit Margin: 533056's current net profit margins (9.7%) are lower than last year (20%).


Past Earnings Growth Analysis

Earnings Trend: 533056's earnings have grown significantly by 20.7% per year over the past 5 years.

Accelerating Growth: 533056's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 533056 had negative earnings growth (-23.2%) over the past year, making it difficult to compare to the Software industry average (-4%).


Return on Equity

High ROE: 533056's Return on Equity (7.9%) is considered low.


Next Steps

Financial Health

How is Vedavaag Systems's financial position?


Financial Position Analysis

Short Term Liabilities: 533056's short term assets (₹983.1M) exceed its short term liabilities (₹161.0M).

Long Term Liabilities: 533056's short term assets (₹983.1M) exceed its long term liabilities (₹96.4M).


Debt to Equity History and Analysis

Debt Level: 533056's debt to equity ratio (4.8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 533056's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 533056's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 533056's interest payments on its debt are well covered by EBIT (175.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Vedavaag Systems's current dividend yield, its reliability and sustainability?

5.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 533056's dividend (5.8%) is higher than the bottom 25% of dividend payers in the Indian market (0.96%).

High Dividend: 533056's dividend (5.8%) is in the top 25% of dividend payers in the Indian market (4.06%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 533056 has been paying a dividend for less than 10 years.

Growing Dividend: 533056's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.5%), 533056'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?

₹6m

CEO Compensation


CEO

Murali Jonnavittula (58yo)

16.25s

Tenure

₹5,702,266

Compensation

Mr. Murali Krishna Jonnavittula has been Managing Director of Vedavaag Systems Limited since January 24, 2004 and served as its Compliance Officer. He serves as an Executive Director of Vedavaag Systems Li ...


CEO Compensation Analysis

Compensation vs Market: Murali's total compensation ($USD75.03K) is above average for companies of similar size in the Indian market ($USD47.67K).

Compensation vs Earnings: Murali's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


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%.


Top Shareholders

Company Information

Vedavaag Systems Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vedavaag Systems Limited
  • Ticker: 533056
  • Exchange: BSE
  • Founded: 1998
  • Industry: Application Software
  • Sector: Software
  • Market Cap: ₹430.990m
  • Shares outstanding: 22.93m
  • Website: https://www.vedavaag.com

Location

  • Vedavaag Systems Limited
  • Siri Sai Orchid
  • 103, West Block
  • Hyderabad
  • Andhra Pradesh
  • 500081
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
533056BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2009

Biography

Vedavaag Systems Limited operates as an IT services company in India and internationally. The company offers e-governance solutions and citizen services for public sector undertakings; and local body management solutions for municipal e-governance, including panchayats, nagar palikas, and municipal corporations. It also provides UNITE, an ERP solution for administrative, banking, credit, and merchandise activities; UNITE ERP, a co-operative banking software that supports in establishing micro to macro MIS for governance for the primary agriculture credit cooperative banks; ERP implementation and maintenance services; and other services, including data enumeration, digitization, hardware procurement, product deployment, resource training, and handholding services, as well as post live support services comprising bug fixing, product enhancements, maintenance of data centers, and disaster recovery management services for social enterprises, co-operatives, and financial services companies. In addition, the company offers kiosk banking services; and system integration services. Further, it acts as an agent for UID aadhar enrolments. Additionally, the company provides ticketing solutions for state road transport sector. The company was formerly known as SARK Systems India Limited and changed its name to Vedavaag Systems Limited in July 2011. Vedavaag Systems Limited was founded in 1998 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 Analysis2020/04/09 13:57
End of Day Share Price2020/04/09 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.