BSE:540143

Stock Analysis Report

Sagarsoft (India)

Executive Summary

Sagarsoft (India) Limited provides software development and related consultancy services in India and internationally.


Snowflake Analysis

Excellent balance sheet and good value.

Share Price & News

How has Sagarsoft (India)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 540143's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

17.7%

540143

-3.8%

IN Software

-2.9%

IN Market


1 Year Return

-66.4%

540143

-51.4%

IN Software

-29.3%

IN Market

Return vs Industry: 540143 underperformed the Indian Software industry which returned -51.4% over the past year.

Return vs Market: 540143 underperformed the Indian Market which returned -29.3% over the past year.


Shareholder returns

540143IndustryMarket
7 Day17.7%-3.8%-2.9%
30 Day-23.8%-35.8%-23.7%
90 Day-19.6%-38.1%-28.6%
1 Year-65.7%-66.4%-50.5%-51.4%-27.9%-29.3%
3 Year-1.6%-6.8%-48.6%-53.1%-15.4%-20.0%
5 Yearn/a-39.1%-48.0%-3.3%-8.3%

Price Volatility Vs. Market

How volatile is Sagarsoft (India)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Sagarsoft (India) 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: 540143 (₹33.55) is trading below our estimate of fair value (₹94.76)

Significantly Below Fair Value: 540143 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 540143 is good value based on its PE Ratio (5.4x) compared to the Software industry average (7x).

PE vs Market: 540143 is good value based on its PE Ratio (5.4x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 540143's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 540143 is overvalued based on its PB Ratio (0.9x) compared to the IN Software industry average (0.6x).


Next Steps

Future Growth

How is Sagarsoft (India) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.8%

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 Sagarsoft (India) 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 Sagarsoft (India) performed over the past 5 years?

52.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 540143 has high quality earnings.

Growing Profit Margin: 540143's current net profit margins (8.8%) are lower than last year (19.4%).


Past Earnings Growth Analysis

Earnings Trend: 540143's earnings have grown significantly by 52.5% per year over the past 5 years.

Accelerating Growth: 540143's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 540143 had negative earnings growth (-60.1%) over the past year, making it difficult to compare to the Software industry average (-4%).


Return on Equity

High ROE: 540143's Return on Equity (15.6%) is considered low.


Next Steps

Financial Health

How is Sagarsoft (India)'s financial position?


Financial Position Analysis

Short Term Liabilities: 540143's short term assets (₹182.0M) exceed its short term liabilities (₹14.1M).

Long Term Liabilities: 540143's short term assets (₹182.0M) exceed its long term liabilities (₹2.6M).


Debt to Equity History and Analysis

Debt Level: 540143's debt to equity ratio (0.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 540143's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 540143's debt is well covered by operating cash flow (6865.4%).

Interest Coverage: 540143 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 540143 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 540143's debt is covered by short term assets (assets are 234.2x debt).


Next Steps

Dividend

What is Sagarsoft (India)'s current dividend yield, its reliability and sustainability?

8.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 540143's dividend (8.94%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: 540143's dividend (8.94%) is in the top 25% of dividend payers in the Indian market (4.16%)


Stability and Growth of Payments

Stable Dividend: 540143 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 540143's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24%), 540143'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?

11.1yrs

Average board tenure


CEO

Manupati Jagadeesh (48yo)

11.42s

Tenure

₹3,406,452

Compensation

Shri. Manupati Jagadeesh has been the Managing Director of Sagarsoft India Ltd., since October 31, 2008. Shri. Jagadeesh has been with Sagarsoft (India) Limited since inception. He has contributed to the S ...


CEO Compensation Analysis

Compensation vs Market: Manupati's total compensation ($USD45.19K) is about average for companies of similar size in the Indian market ($USD48.15K).

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


Board Members

NamePositionTenureCompensationOwnership
Manupati Jagadeesh
MD & Executive Director11.42yrs₹3.41m0.21% 382.5k
Katikireddy Pradeep Reddy
CFO & Executive Director7.33yrs₹4.32mno data
Sammidi Reddy
Chairmanno data₹25.00k35.38% 66.0m
Kondrella Rao
Independent & Non-Executive Director14.92yrs₹5.00kno data
Kalva Satish Reddy
Non-Executive Director18.75yrs₹10.00kno data
Nalamati Mohan
Independent & Non-Executive Director14.92yrs₹40.00k0.93% 1.7m
Katta Ganesh
Non-Executive Independent Director5.5yrs₹55.00kno data
Kolluru Prasad
Independent & Non-Executive Director6.92yrs₹55.00k0.26% 488.4k
Neelima Kaushik
Independent & Non-Executive Director4.33yrs₹30.00kno data

11.1yrs

Average Tenure

48yo

Average Age

Experienced Board: 540143's board of directors are seasoned and experienced ( 11.1 years average tenure).


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

Sagarsoft (India) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sagarsoft (India) Limited
  • Ticker: 540143
  • Exchange: BSE
  • Founded: 1996
  • Industry: Application Software
  • Sector: Software
  • Market Cap: ₹186.538m
  • Shares outstanding: 5.56m
  • Website: https://www.sagarsoft.in

Number of Employees


Location

  • Sagarsoft (India) Limited
  • Plot No. 111
  • 1st Floor
  • Hyderabad
  • Andhra Pradesh
  • 500033
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
540143BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2016

Biography

Sagarsoft (India) Limited provides software development and related consultancy services in India and internationally. It offers data and data systems, applications, infrastructure, and security transformation services to businesses. The company also provides application development, support and maintenance, and transformation services; quality assurance and testing services; remote infrastructure management services; and ITIL process consulting, ITSM process implementation planning, ITSM design and deployment, and ServiceNow implementation and support services. In addition, it deploys and manages big data/enterprise data platforms; architects, designs, builds, and maintains data bases, data marts, and data warehouses; and builds and maintains customer, supply chain, and enterprise MDM solutions. Further, the company architects and builds enterprise-level BI solutions; builds integrations for enterprise level analytics initiatives and business platform implementations; and builds statistical, mathematical, and algorithmic models for predictive and prescriptive analytics. Additionally, it offers end-to-end IT security services; a collection of ready-to-use building blocks; and business processes digitizing services. The company also provides assessment, re-engineering, implementation, integration, admin, and support services for business platforms. Sagarsoft (India) Limited was founded in 1996 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 Analysis2020/03/30 13:34
End of Day Share Price2020/03/30 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.