BSE:540416

Stock Analysis Report

Octaware Technologies

Executive Summary

Octaware Technologies Limited provides a range of information technology (IT) solutions in India and internationally.


Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 540416 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

540416

-3.8%

IN Software

-2.9%

IN Market


1 Year Return

-18.4%

540416

-51.4%

IN Software

-29.3%

IN Market

Return vs Industry: 540416 exceeded the Indian Software industry which returned -51.4% over the past year.

Return vs Market: 540416 exceeded the Indian Market which returned -29.3% over the past year.


Shareholder returns

540416IndustryMarket
7 Day0%-3.8%-2.9%
30 Day-5.9%-38.2%-26.5%
90 Dayn/a-38.1%-28.5%
1 Year-18.4%-18.4%-50.5%-51.4%-27.9%-29.3%
3 Yearn/a-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 Octaware Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 year ago | Simply Wall St

Best Undervalued Stock in May

1 year ago | Simply Wall St

Best Undervalued Stock in May

1 year ago | Simply Wall St

Best Undervalued Stock in May

Valuation

Is Octaware Technologies undervalued compared to its fair value and its price relative to the market?

31.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 540416's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 540416's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 540416 is poor value based on its PE Ratio (31.6x) compared to the Software industry average (7x).

PE vs Market: 540416 is poor value based on its PE Ratio (31.6x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 540416's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 540416 is overvalued based on its PB Ratio (1.6x) compared to the IN Software industry average (0.6x).


Next Steps

Future Growth

How is Octaware Technologies 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 Octaware Technologies 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 Octaware Technologies performed over the past 5 years?

-12.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 540416 has high quality earnings.

Growing Profit Margin: 540416's current net profit margins (9.4%) are higher than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: 540416's earnings have declined by -12.3% per year over the past 5 years.

Accelerating Growth: 540416's earnings growth over the past year (7.5%) exceeds its 5-year average (-12.3% per year).

Earnings vs Industry: 540416 earnings growth over the past year (7.5%) exceeded the Software industry -4%.


Return on Equity

High ROE: 540416's Return on Equity (5.7%) is considered low.


Next Steps

Financial Health

How is Octaware Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: 540416's short term assets (₹113.6M) exceed its short term liabilities (₹20.8M).

Long Term Liabilities: 540416 has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: 540416 is debt free.

Reducing Debt: 540416 had no debt 5 years ago.

Debt Coverage: 540416 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 540416 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 540416 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 540416's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 540416's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 540416'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 540416's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 540416'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 540416'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?

5.3yrs

Average management tenure


CEO

Anwer Baghdadi

0.33

Tenure

Mr. Anwer Baghdadi has been Chief Executive Officer of Octaware Technologies Limited since November 14, 2019. 


Leadership Team

NamePositionTenureCompensationOwnership
Sajid Iqbal Hameed
CFO, COO & Whole-Time Director14.42yrsno data17.97% 51.6m
Mohammed Siraj Gunwan
Executive VP & Whole-Time Director10.42yrs₹990.00k7.35% 21.1m
Anwer Baghdadi
Chief Executive Officer0.33yrno datano data
Merajuddin Shaikh
General Manager of Technologyno datano datano data
Ankit Mehra
Compliance Officer & Company Secretary0.75yrno datano data
Suhail Ansari
Head of Development5.25yrsno datano data
Yahya Malik
Chief Marketing Officerno datano datano data
Haroon Baig
Head of Human Resources & GM for Projects14.67yrs₹584.00k3.72% 10.7m
Shahnawaz Shaikh
Head of Finance0.17yr₹664.00k5.66% 16.3m
Munaf Khateeb
Head of Services Delivery5.42yrsno datano data

5.3yrs

Average Tenure

Experienced Management: 540416's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sajid Iqbal Hameed
CFO, COO & Whole-Time Director14.42yrsno data17.97% 51.6m
Mohammed Siraj Gunwan
Executive VP & Whole-Time Director10.42yrs₹990.00k7.35% 21.1m
Shahnawaz Shaikh
Head of Finance0.17yr₹664.00k5.66% 16.3m
S. Alam
Member of Advisory Boardno datano datano data
Shyam Johari
Member of Advisory Boardno datano datano data
Udayan Maroo
Member of Advisory Boardno datano datano data
Mohammed Aslam Khan
Chairman & MDno data₹1.50m30.21% 86.8m
Krishnan Narayanan
Non Executive Independent Director4.25yrs₹2.50kno data
Usha Mishra
Non-Executive Independent Director2yrs₹2.50kno data
Rabia Khan
Non-Executive Independent Director1yrno datano data

3.1yrs

Average Tenure

47yo

Average Age

Experienced Board: 540416's board of directors are considered experienced (3.1 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 been diluted in the past year, with total shares outstanding growing by 30.5%.


Top Shareholders

Company Information

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


Key Information

  • Name: Octaware Technologies Limited
  • Ticker: 540416
  • Exchange: BSE
  • Founded: 2005
  • Industry: Application Software
  • Sector: Software
  • Market Cap: ₹287.246m
  • Shares outstanding: 3.59m
  • Website: https://www.octaware.com

Location

  • Octaware Technologies Limited
  • 204 Timmy Arcade
  • Makwana Road
  • Mumbai
  • Maharashtra
  • 400059
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
540416BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2017

Biography

Octaware Technologies Limited provides a range of information technology (IT) solutions in India and internationally. The company designs, develops, and maintains software systems and solutions; creates new applications; and enhances the functionality of the customers’ existing software products. Its services include enterprise portal, enterprise resource planning and customer relationship management implementation, software architecture, software development services, mobile solutions, RFID solutions, cloud and IT infrastructure services, geospatial services, and consulting services. The company offers products, such as PowerERM, a Web based employee relationship management system; Hospice, a hospital information management system; iOnAsset, an automated asset tracking and management system; and IntelliTrade, a brokerage management system. It also provides solutions, including RealWin, a real estate CRM solution; Life2Care, a patient relationship management system; eDocNet, an enterprise content and document management system; and eQuire, an office automation and eProcurement solution. The company serves healthcare, banking and financial, government, education, telecom, oil and gas, real estate and construction, and manufacturing industries. Octaware Technologies Limited was incorporated in 2005 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 13:34
End of Day Share Price2020/03/13 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.