BSE:538922

Stock Analysis Report

Executive Summary

Cosyn Limited provides information technology (IT) and IT enabled services in India and internationally.

Rewards

Trading at 72.2% below its fair value

Risk Analysis

Does not have a meaningful market cap (₹138M)

Unstable dividend track record

Highly volatile share price over past 3 months

Profit margins (2.2%) are lower than last year (10.4%)

+ 1 more risk


Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 538922's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

26.7%

538922

-0.6%

IN IT

-1.1%

IN Market


1 Year Return

-50.7%

538922

11.7%

IN IT

7.3%

IN Market

Return vs Industry: 538922 underperformed the Indian IT industry which returned 13.6% over the past year.

Return vs Market: 538922 underperformed the Indian Market which returned 6.7% over the past year.


Shareholder returns

538922IndustryMarket
7 Day26.7%-0.6%-1.1%
30 Day30.4%1.0%1.5%
90 Day16.3%8.5%5.1%
1 Year-49.6%-50.7%14.6%11.7%9.3%7.3%
3 Year-87.7%-88.3%77.1%67.0%28.9%22.0%
5 Year131.8%120.7%65.6%50.6%33.1%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Cosyn 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: 538922 (₹19.45) is trading below our estimate of fair value (₹69.91)

Significantly Below Fair Value: 538922 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 538922 is poor value based on its PE Ratio (20.3x) compared to the IT industry average (13x).

PE vs Market: 538922 is poor value based on its PE Ratio (20.3x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 538922's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 538922 is good value based on its PB Ratio (0.5x) compared to the IN IT industry average (0.8x).


Next Steps

Future Growth

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

9.0%

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 Cosyn 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 Cosyn performed over the past 5 years?

5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 538922 has high quality earnings.

Growing Profit Margin: 538922's current net profit margins (2.2%) are lower than last year (10.4%).


Past Earnings Growth Analysis

Earnings Trend: 538922 has become profitable over the past 5 years, growing earnings by 5.3% per year.

Accelerating Growth: 538922's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 538922 had negative earnings growth (-83.2%) over the past year, making it difficult to compare to the IT industry average (6.6%).


Return on Equity

High ROE: 538922's Return on Equity (2.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cosyn's financial position?


Financial Position Analysis

Short Term Liabilities: 538922's short term assets (₹300.4M) exceed its short term liabilities (₹136.8M).

Long Term Liabilities: 538922's short term assets (₹300.4M) exceed its long term liabilities (₹7.3M).


Debt to Equity History and Analysis

Debt Level: 538922's debt to equity ratio (2.5%) is considered satisfactory.

Reducing Debt: 538922's debt to equity ratio has reduced from 23.4% to 2.5% over the past 5 years.

Debt Coverage: 538922's debt is well covered by operating cash flow (1050.2%).

Interest Coverage: 538922's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet

Inventory Level: 538922 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 538922's debt is covered by short term assets (assets are 41.4x debt).


Next Steps

Dividend

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

2.03%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%0.6%markettop25%2.3%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 538922's dividend (2.57%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: 538922's dividend (2.22%) is low compared to the top 25% of dividend payers in the Indian market (2.29%).


Stability and Growth of Payments

Stable Dividend: 538922 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 538922 has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.2%), 538922's dividend payments are 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

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

4.8yrs

Average board tenure


CEO

Ravi Vishnu (57yo)

15yrs

Tenure

₹5,889,589

Compensation

Mr. Ravi Vishnu has been the Managing Director of COSYN Limited (formerly, CSS Technergy) Limited since January 4, 2005 and as its Chairman of the Board. Mr. Vishnu focuses in Finance, HR and Marketing at ...


CEO Compensation Analysis

Compensation vs Market: Ravi's total compensation ($USD83.11K) is above average for companies of similar size in the Indian market ($USD50.75K).

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


Board Age and Tenure

4.8yrs

Average Tenure

57yo

Average Age

Experienced Board: 538922's board of directors are considered experienced (4.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Aruva Reddy (57yo)

    Director of Operations & Whole-Time Director

    • Tenure: 22yrs
    • Compensation: ₹4.41m
  • Ravi Vishnu (57yo)

    Chairman & MD

    • Tenure: 15yrs
    • Compensation: ₹5.89m
  • Kadari Rao

    Chief Financial Officer

    • Kiran Vellanki

      Head of Division

      • Naga Putsala

        Head of Division

        • Ankita Gupta

          Company Secretary & Compliance officer

          • Tenure: 0.9yrs

        Board Members

        • Aruva Reddy (57yo)

          Director of Operations & Whole-Time Director

          • Tenure: 22yrs
          • Compensation: ₹4.41m
        • Ravi Vishnu (57yo)

          Chairman & MD

          • Tenure: 15yrs
          • Compensation: ₹5.89m
        • Vankineni Siva Murthy (72yo)

          Independent Non-Executive Director

          • Tenure: 8.3yrs
          • Compensation: ₹20.00k
        • Ravi Kasturi (57yo)

          Non-Executive Woman Director

          • Tenure: 4.8yrs
          • Compensation: ₹22.00k
        • Rama Karumanchi (56yo)

          Independent Non-Executive Director

          • Tenure: 3.7yrs
          • Compensation: ₹20.00k
        • Sridhar Borapureddi (48yo)

          Independent Non-Executive Director

          • Tenure: 0.4yrs

        Company Information

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


        Key Information

        • Name: Cosyn Limited
        • Ticker: 538922
        • Exchange: BSE
        • Founded: 1986
        • Industry: IT Consulting and Other Services
        • Sector: Software
        • Market Cap: ₹175.500m
        • Shares outstanding: 7.50m
        • Website: https://www.cosyn.in

        Location

        • Cosyn Limited
        • Plot No.15, TP House
        • D.No 1-98/9/J/15, 3rd Floor
        • Hyderabad
        • Andhra Pradesh
        • 500081
        • India

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        538922BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2005

        Biography

        Cosyn Limited provides information technology (IT) and IT enabled services in India and internationally. The company offers business differentiation solutions to clients in utilities, e-governance, information governance, and document management domains. It provides data and information governance services, such as document design and digitization, confidential data processing, scanning and imaging, data capture, ICR/OCR/OMR, document archival, data de-duplication, and manpower augmentation. The company also offers utilities-ITES services, including domain consultancy, GIS applications, consumer indexing, database migration, and facility management, as well as meter to cash services. In addition, it provides e-governance services in the areas of project and manpower consultancy, application development, database migration, data capture, remote services delivery, biometric capture, citizen portals, data mining, and deployment of smart cards. The company was formerly known as CSS Technergy Limited and changed its name to Cosyn Limited in August 2015. Cosyn Limited was founded in 1986 and is headquartered in Hyderabad, India. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/22 12:47
        End of Day Share Price2020/01/22 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.