BSE:540590

Stock Analysis Report

Executive Summary

Riddhi Corporate Services Limited provides document management, warehousing, contact center, document digitization, data entry, Web/data enabled, software development, and address/credit/contact verification services in India.

Rewards

Earnings grew by 884.7% over the past year

Risk Analysis

Earnings have declined by -3.52% per year over past 5 years

High level of non-cash earnings

Shareholders have been substantially diluted in the past year

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Excellent balance sheet with proven track record.


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Share Price & News

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


Latest Share Price and Events

Stable Share Price: 540590's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.1%

540590

1.8%

IN IT

-0.8%

IN Market


1 Year Return

n/a

540590

7.9%

IN IT

11.1%

IN Market

Return vs Industry: Insufficient data to determine how 540590 performed against the Indian IT industry.

Return vs Market: Insufficient data to determine how 540590 performed against the Indian Market.


Shareholder returns

540590IndustryMarket
7 Day-4.1%1.8%-0.8%
30 Day-5.4%0.8%-2.3%
90 Day34.7%6.3%2.1%
1 Yearn/a10.7%7.9%13.1%11.1%
3 Yearn/a71.1%61.1%22.9%16.2%
5 Yearn/a57.0%42.5%34.9%22.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Riddhi Services undervalued compared to its fair value and its price relative to the market?

58.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 540590 (₹187.3) is trading above our estimate of fair value (₹77.5)

Significantly Below Fair Value: 540590 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 540590 is poor value based on its PE Ratio (58.5x) compared to the IT industry average (11.3x).

PE vs Market: 540590 is poor value based on its PE Ratio (58.5x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 540590's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 540590 is overvalued based on its PB Ratio (8.5x) compared to the IN IT industry average (0.9x).


Next Steps

Future Growth

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

9.3%

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 Riddhi Services 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 Riddhi Services performed over the past 5 years?

-3.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 540590 has a high level of non-cash earnings.

Growing Profit Margin: 540590's current net profit margins (5.9%) are higher than last year (1.1%).


Past Earnings Growth Analysis

Earnings Trend: 540590's earnings have declined by -3.5% per year over the past 5 years.

Accelerating Growth: 540590's earnings growth over the past year (884.7%) exceeds its 5-year average (-3.5% per year).

Earnings vs Industry: 540590 earnings growth over the past year (884.7%) exceeded the IT industry 7.4%.


Return on Equity

High ROE: 540590's Return on Equity (21.8%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Riddhi Services's financial position?


Financial Position Analysis

Short Term Liabilities: 540590's short term assets (₹118.2M) do not cover its short term liabilities (₹147.3M).

Long Term Liabilities: 540590's short term assets (₹118.2M) exceed its long term liabilities (₹4.6M).


Debt to Equity History and Analysis

Debt Level: 540590's debt to equity ratio (22.8%) is considered satisfactory.

Reducing Debt: 540590's debt to equity ratio has reduced from 34.2% to 22.8% over the past 5 years.

Debt Coverage: 540590's debt is well covered by operating cash flow (112%).

Interest Coverage: 540590 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 540590 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 540590's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

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

0.11%

Current Dividend Yield


Dividend Yield vs Market

company0.1%marketbottom25%0.6%markettop25%2.5%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 540590's dividend (0.11%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 540590's dividend (0.11%) is low compared to the top 25% of dividend payers in the Indian market (2.52%).


Stability and Growth of Payments

Stable Dividend: 540590 is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: 540590 is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 540590 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 540590'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?

2.9yrs

Average management tenure


CEO

Pravinchandra Gor (70yo)

3yrs

Tenure

₹2,400,000

Compensation

Mr. Pravinchandra Kodarlal Gor has been Managing Director of Riddhi Corporate Services Limited since February 01, 2017. Mr. Gor is responsible for day to day business activities. He is associated with Ridd ...


CEO Compensation Analysis

Compensation vs Market: Pravinchandra's total compensation ($USD33.56K) is below average for companies of similar size in the Indian market ($USD50.21K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Pravinchandra Gor
Chairman & MD3yrs₹2.40m22.65% 479.1m
Manish Joshi
Chief Financial Officer2.9yrs₹552.00kno data
Parth Pandya
Compliance Officer & Company Secretary2.4yrs₹132.00kno data
Alpitkumar Gor
Whole Time Director3yrs₹2.40m26.18% 554.0m
Jayshreeben Gor
Executive & Non-Independent Director3yrs₹600.00k21.94% 464.2m
Umesh Bhadreswara
Executive Director2.6yrs₹900.00k0.088% 1.9m
Amit Sinha
CEO & Chief Business Development Officer0yrs₹100.00kno data

2.9yrs

Average Tenure

56.5yo

Average Age

Experienced Management: 540590's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pravinchandra Gor
Chairman & MD3yrs₹2.40m22.65% 479.1m
Alpitkumar Gor
Whole Time Director3yrs₹2.40m26.18% 554.0m
Jayshreeben Gor
Executive & Non-Independent Director3yrs₹600.00k21.94% 464.2m
Umesh Bhadreswara
Executive Director2.6yrs₹900.00k0.088% 1.9m
Subhasish Chakraborty
Non-Executive Officer2.1yrsno datano data
Soumyaranjan Kanhu Pradhan
Independent & Non-Executive Director2.9yrsno datano data
Vipul Pandit
Independent & Non-Executive Director2.9yrsno datano data
Kalpeshbhai Shukla
Independent & Non-Executive Director2.9yrsno datano data
Bhavin Pandya
Independent Director0.6yrsno datano data
Kalpanaben Suthar
Independent Director0.6yrsno datano data

2.9yrs

Average Tenure

43yo

Average Age

Experienced Board: 540590's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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 substantially diluted in the past year, with total shares outstanding growing by 55.9%.


Top Shareholders

Company Information

Riddhi Corporate Services Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Riddhi Corporate Services Limited
  • Ticker: 540590
  • Exchange: BSE
  • Founded: 2010
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: ₹2.116b
  • Shares outstanding: 11.38m
  • Website: https://www.riddhicorporate.co.in

Location

  • Riddhi Corporate Services Limited
  • 10, Mill Officers Colony
  • Behind Old RBI
  • Ahmedabad
  • Gujarat
  • 380009
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
540590BSE (Mumbai Stock Exchange)YesEquity SharesININRJun 2017

Biography

Riddhi Corporate Services Limited provides document management, warehousing, contact center, document digitization, data entry, Web/data enabled, software development, and address/credit/contact verification services in India. The company offers services of data management, collection and handling of customer application form (CAF), audit of CAF, order entry of CAF, CAF bar coding, inward, storage and retrieval of data, temporary indexing, data entry, scanning, uploading, and sample image audit at spoke level. It also provides services of collection of dues, retention, bill delivery management services along with over dues amount from subscriber by way tele calling, field visit, address the customer’s issue and retain the customer, and escalation management while collecting overdue amount. In addition, the company offers inventory management, call answering, online data entry, live chat support, custom software development, and contact point verification agency services. It serves telecom, banking, NBFC, and IT sectors. Riddhi Corporate Services Limited was incorporated in 2010 and is based in Ahmedabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 13:17
End of Day Share Price2020/02/17 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.