BSE:538835

Stock Analysis Report

Intellect Design Arena

Executive Summary

Intellect Design Arena Limited provides software development and related services for banking, insurance, and other financial services in India and internationally.

Snowflake

Fundamentals

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Intellect Design Arena's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 538835's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.9%

538835

-0.3%

IN Software

0.5%

IN Market


1 Year Return

-33.7%

538835

-24.0%

IN Software

5.6%

IN Market

Return vs Industry: 538835 underperformed the Indian Software industry which returned -24% over the past year.

Return vs Market: 538835 underperformed the Indian Market which returned 5.6% over the past year.


Shareholder returns

538835IndustryMarket
7 Day5.9%-0.3%0.5%
30 Day-18.1%-2.7%2.1%
90 Day-28.9%-2.3%10.4%
1 Year-33.7%-33.7%-20.6%-24.0%7.6%5.6%
3 Year20.6%13.0%-2.2%-10.1%37.0%29.9%
5 Yearn/a3.5%-11.3%39.6%27.0%

Price Volatility Vs. Market

How volatile is Intellect Design Arena's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Intellect Design Arena undervalued compared to its fair value and its price relative to the market?

47.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 538835 (₹154.05) is trading above our estimate of fair value (₹27.57)

Significantly Below Fair Value: 538835 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 538835 is poor value based on its PE Ratio (47.5x) compared to the Software industry average (11.9x).

PE vs Market: 538835 is poor value based on its PE Ratio (47.5x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: 538835 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 538835 is overvalued based on its PB Ratio (2x) compared to the IN Software industry average (1x).


Next Steps

Future Growth

How is Intellect Design Arena forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

59.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 538835's forecast earnings growth (59.1% per year) is above the savings rate (7.6%).

Earnings vs Market: 538835's earnings (59.1% per year) are forecast to grow faster than the Indian market (19.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 538835's revenue (13.8% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: 538835's revenue (13.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 538835's Return on Equity is forecast to be low in 3 years time (13%).


Next Steps

Past Performance

How has Intellect Design Arena performed over the past 5 years?

79.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 538835 has a high level of non-cash earnings.

Growing Profit Margin: 538835's current net profit margins (3%) are lower than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: 538835's earnings have grown significantly by 79.1% per year over the past 5 years.

Accelerating Growth: 538835's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 538835 had negative earnings growth (-62.2%) over the past year, making it difficult to compare to the Software industry average (-4.2%).


Return on Equity

High ROE: 538835's Return on Equity (4.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Intellect Design Arena's financial position?


Financial Position Analysis

Short Term Liabilities: 538835's short term assets (₹8.7B) exceeds its short term liabilities (₹6.2B)

Long Term Liabilities: 538835's short term assets (₹8.7B) exceeds its long term liabilities (861.3M)


Debt to Equity History and Analysis

Debt Level: 538835's debt to equity ratio (19.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 538835's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 538835's debt is not well covered by operating cash flow (9.7%).

Interest Coverage: 538835's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet

Inventory Level: 538835 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 538835's debt is covered by short term assets (assets are 4.4x debt).


Next Steps

Dividend

What is Intellect Design Arena's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.5%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 538835's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 538835'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 538835's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 538835'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 538835's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Intellect Design Arena's salary, the management and board of directors tenure and is there insider trading?

4.1yrs

Average management tenure


CEO

Arun Jain (60yo)

5.3yrs

Tenure

0

Mr. Arun Jain, B.E., founded Polaris Consulting & Services Limited (also known as Polaris Financial Technology Limited and Polaris Software Lab Ltd.) in 1993. Mr. Jain serves as Chief Executive Officer of  ...


Management Age and Tenure

4.1yrs

Average Tenure

61yo

Average Age

Experienced Management: 538835's management team is considered experienced (4.1 years average tenure).


Board Age and Tenure

4.2yrs

Average Tenure

61yo

Average Age

Experienced Board: 538835's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell₹1,330,00027 Jun 19
Atanu Ganguli
EntityIndividual
Shares5,000
Max Price₹266.00
Sell₹1,758,53904 Jun 19
Ravanasamudram Nilakantam Prasad
EntityIndividual
Shares7,000
Max Price₹254.00
Sell₹662,50004 Jun 19
Ankush Bhargava
EntityIndividual
Shares2,650
Max Price₹250.00
Sell₹2,961,89120 May 19
K. Srinivasan
EntityIndividual
Shares13,145
Max Price₹226.00

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.8%.


Management Team

  • Arun Jain (60yo)

    Chairman & MD

    • Tenure: 5.3yrs
  • Ganesh Balaji

    Chief Technology Officer

    • Tenure: 0yrs
  • Govind Govindarajan

    Global Head of Administration

    • Tenure: 0yrs
  • Anil Verma (64yo)

    Whole Time Director

    • Tenure: 5.2yrs
    • Compensation: ₹26.64m
  • Venkat Saranu (47yo)

    Chief Financial Officer

    • Tenure: 1.3yrs
    • Compensation: ₹10.30m
  • Andrew England (62yo)

    Head of Strategy - Intellect Global Transaction Banking & Director

    • Tenure: 1.1yrs
    • Compensation: ₹17.26m
  • V. Naresh

    VP, Compliance Officer & Company Secretary

    • Tenure: 5.1yrs
    • Compensation: ₹3.60m
  • Jean-Pierre Arens

    Head of Business Development

    • Tenure: 0yrs
  • A. Ravi Shankar

    SVP of Legal & General Counsel

    • Tenure: 0yrs
  • Praveen Malik

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Arun Jain (60yo)

    Chairman & MD

    • Tenure: 5.3yrs
  • Aruna Rao (60yo)

    Independent Director

    • Tenure: 5.1yrs
  • Vijaya R. Sampath (66yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: ₹250.00k
  • Arun Aran (60yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: ₹1.50m
  • Anil Verma (64yo)

    Whole Time Director

    • Tenure: 5.2yrs
    • Compensation: ₹26.64m
  • Andrew England (62yo)

    Head of Strategy - Intellect Global Transaction Banking & Director

    • Tenure: 1.1yrs
    • Compensation: ₹17.26m

Company Information

Intellect Design Arena Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Intellect Design Arena Limited
  • Ticker: 538835
  • Exchange: BSE
  • Founded: 2011
  • Industry: Application Software
  • Sector: Software
  • Market Cap: ₹20.740b
  • Shares outstanding: 132.23m
  • Website: https://www.intellectdesign.com

Number of Employees


Location

  • Intellect Design Arena Limited
  • Plot No. 3/G-3, SIPCOT IT Park
  • Siruseri
  • Chennai
  • Tamil Nadu
  • 600130
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
538835BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2014
INTELLECTNSEI (National Stock Exchange of India)YesEquity SharesININRDec 2014

Biography

Intellect Design Arena Limited provides software development and related services for banking, insurance, and other financial services in India and internationally. The company offers platforms and product ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 12:48
End of Day Share Price2019/11/21 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.