BSE:540735

Stock Analysis Report

IRIS Business Services

Executive Summary

IRIS Business Services Limited, together with its subsidiaries, provides software products, services, and solutions for compliance, data, and analytics worldwide.

Snowflake

Fundamentals

Mediocre balance sheet with poor track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 540735 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.7%

540735

-0.4%

IN Software

-1.2%

IN Market


1 Year Return

-47.7%

540735

-24.0%

IN Software

4.0%

IN Market

Return vs Industry: 540735 underperformed the Indian Software industry which returned -24% over the past year.

Return vs Market: 540735 underperformed the Indian Market which returned 4% over the past year.


Shareholder returns

540735IndustryMarket
7 Day1.7%-0.4%-1.2%
30 Day7.0%-1.2%4.8%
90 Day9.4%-0.04%7.5%
1 Year-47.7%-47.7%-20.5%-24.0%6.1%4.0%
3 Yearn/a-2.5%-10.3%34.2%27.3%
5 Yearn/a6.5%-8.7%37.4%24.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

1.68x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 540735's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 540735's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 540735 is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: 540735 is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 540735's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 540735 is overvalued based on its PB Ratio (1.7x) compared to the IN Software industry average (1x).


Next Steps

Future Growth

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

20.7%

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 IRIS Business 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 IRIS Business Services performed over the past 5 years?

-34.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 540735 has high quality earnings.

Growing Profit Margin: 540735's current net profit margins (-15.3%) are lower than last year (-14.8%).


Past Earnings Growth Analysis

Earnings Trend: 540735 is unprofitable, and losses have increased over the past 5 years at a rate of -34.3% per year.

Accelerating Growth: Unable to compare 540735's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 540735 is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (-2.8%).


Return on Equity

High ROE: 540735 has a negative Return on Equity (-25.26%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is IRIS Business Services's financial position?


Financial Position Analysis

Short Term Liabilities: 540735's short term assets (₹306.4M) do not cover its short term liabilities (₹321.0M)

Long Term Liabilities: 540735's short term assets (306.4M) exceeds its long term liabilities (71.0M)


Debt to Equity History and Analysis

Debt Level: 540735's debt to equity ratio (53.1%) is considered high

Reducing Debt: 540735's debt to equity ratio has increased from 28.4% to 53.1% over the past 5 years.


Balance Sheet

Inventory Level: 540735 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 540735's debt is covered by short term assets (assets are 2.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 540735 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 540735 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 28.5% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.4%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 540735's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 540735'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 540735's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 540735'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 540735'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 IRIS Business Services's salary, the management and board of directors tenure and is there insider trading?

15.3yrs

Average management tenure


CEO

Swami Subramaniam (57yo)

4.8yrs

Tenure

₹3,000,000

Compensation

Mr. Swaminathan Subramaniam also known as Swami co-founded IRIS Business Services Limited in 1994 and has been its Chief Executive Officer since February 07, 2015 and Whole Time Director since October 03,  ...


CEO Compensation Analysis

Compensation vs Market: Swami's total compensation ($USD41.81K) is about average for companies of similar size in the Indian market ($USD33.44K).

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


Management Age and Tenure

15.3yrs

Average Tenure

56yo

Average Age

Experienced Management: 540735's management team is seasoned and experienced (15.3 years average tenure).


Board Age and Tenure

10.6yrs

Average Tenure

56.5yo

Average Age

Experienced Board: 540735's board of directors are seasoned and experienced ( 10.6 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 been diluted in the past year, with total shares outstanding growing by 16.3%.


Management Team

  • Swami Subramaniam (57yo)

    Co-Founder

    • Tenure: 4.8yrs
    • Compensation: ₹3.00m
  • Balu Krishnan (56yo)

    Co-Founder

    • Tenure: 19.7yrs
    • Compensation: ₹3.00m
  • Deepta Rangarajan (53yo)

    Co-Founder

    • Tenure: 19.7yrs
    • Compensation: ₹3.00m
  • Jay Mistry

    Company Secretary & Compliance Officer

    • Tenure: 1.7yrs
    • Compensation: ₹1.20m
  • Pradip Dey

    Head of Delivery

    • Tenure: 0yrs
  • Gautam Mahanti

    Head of GST Vertical & VP of Enterprise Reporting

    • Tenure: 0yrs
  • Shilpa Dhobale

    Chief Domain Expert & Head of XBRL Consulting Team

    • Tenure: 0yrs
  • Arup Ganguly

    Head of Sales

    • Tenure: 0yrs
  • Rahul Dhamne

    Head of Consulting & Principal of XBRL Consulting Team

    • Tenure: 0yrs

Board Members

  • Ashok Venkatramani (55yo)

    Non-Executive Independent Director

    • Tenure: 2.1yrs
    • Compensation: ₹180.00k
  • Swami Subramaniam (57yo)

    Co-Founder

    • Tenure: 4.8yrs
    • Compensation: ₹3.00m
  • Vinod Agarwala (70yo)

    Non-Executive Independent Director

    • Tenure: 2yrs
    • Compensation: ₹225.00k
  • Balu Krishnan (56yo)

    Co-Founder

    • Tenure: 19.7yrs
    • Compensation: ₹3.00m
  • Deepta Rangarajan (53yo)

    Co-Founder

    • Tenure: 19.7yrs
    • Compensation: ₹3.00m
  • Bhaswar Mukherjee (66yo)

    Non-Executive Independent Director

    • Tenure: 2.1yrs
    • Compensation: ₹200.00k

Company Information

IRIS Business Services Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IRIS Business Services Limited
  • Ticker: 540735
  • Exchange: BSE
  • Founded: 2000
  • Industry: Application Software
  • Sector: Software
  • Market Cap: ₹396.462m
  • Shares outstanding: 18.88m
  • Website: https://www.irisbusiness.com

Number of Employees


Location

  • IRIS Business Services Limited
  • T-231, Tower 2
  • 3rd Floor
  • Navi Mumbai
  • Maharashtra
  • 400703
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
540735BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2017

Biography

IRIS Business Services Limited, together with its subsidiaries, provides software products, services, and solutions for compliance, data, and analytics worldwide. It operates through Collect, Create, and C ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 13:03
End of Day Share Price2019/11/13 00:00
Earnings2019/03/31
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.