Saksoft Limited, an information technology company, provides digital transformation solutions in India, the United Kingdom, the United States, and Singapore.
The last earnings update was 65 days ago.
Discounted Cash Flow Calculation for BSE:590051 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
BSE:590051 DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Saksoft's share price is below the future cash flow value, but not at a moderate discount (< 20%).
Saksoft's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Saksoft's earnings available for a low price, and how does
this compare to other companies in the same industry?
Saksoft's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Saksoft's revenue is expected to grow by 18% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Saksoft's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
6/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
Mr. Aditya Krishna has been the Managing Director of Sak Abrasives Limited since 1997. Mr. Krishna serves as the Managing Director of Acuma Solutions Limited. Mr. Krishna Co-founded Saksoft Limited in 1999 and has been its Chairman of the Board since October 30, 2015 and also serves as the Managing Director. He has over 25 years of experience in Banking, Finance and Software Industry. Mr. Krishna served with Chase Manhattan Bank N.A, New York, USA from 1985 to 1987 and was responsible for cash management products including pricing decisions, institutional sales and handling large corporate customers. With Citibank N.A, New York, USA from 1987 to 1990 as a member of the business analysis team of the credit card division he handled insurance products. From 1990 to 1995, he served as Vice-President, Credit Director and Financial Controller of Citibank N.A, India and was responsible for managing its credit card portfolio. Mr. Krishna founded Nation Wide Finance Ltd., and served as its Managing Director from 1995 to 2001 and was its Promoter. He serves as a Director of Sak Abrasives Limited. He serves as an Executive Director of Saksoft Limited. He served as a Director of ING Vysya Bank Ltd., since December 21, 2006 until January 28, 2013. He served as Director of Widia (India) Ltd. from 1991 to 2002 as a member of the founding group. Mr. Krishna is a Post Graduate in Economics at St. Stephens College, New Delhi and has MBA in Finance and Marketing from Northeastern University, Boston, USA.
Aditya's compensation has been consistent with company performance over the past year.
Aditya's remuneration is lower than average for companies of similar size in India.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Saksoft management team is about average.
Chief Financial Officer
Company Secretary & Compliance Officer
Senior VP & Global Head of Information Management Services
Executive Vice President of Sales & Marketing
Executive VP & Global Delivery Head
Senior Vice President of Business Growth
President & CTO of DreamOrbit
Chief Executive Officer of DreamOrbit
Chief Commercial Officer of Acuma Solutions
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Saksoft board of directors is about average.
Saksoft Limited, an information technology company, provides digital transformation solutions in India, the United Kingdom, the United States, and Singapore. The company offers application services in the areas of custom application development, Internet of Things, mobile application development, cloud migration, and block chain. It also provides information management services, including big data solutions comprising data management, multi-dimensional aggregation and allocation, data tagging and standardization, extract-transfer-load process, centralized repositories or data warehouse, real-time reporting with analytical alerts, data mart, key performance indicators optimization, version control and process management, and risk management and insights; business intelligence solutions, such as data warehousing, data discovery and visualization, master data/data quality management, data integration, data governance, and data warehouse modernization; and analytics solutions. In addition, the company provides testing services; software solutions including IM Strategy; and consulting, design, custom application development, RaaMS, and BI & DW services, as well as systems integration, implementation, assurance, and placement services. It serves logistics, BFSI, healthcare, telecom, automotive, manufacturing, retail, e-commerce, education, financial services, supply chain, and public sectors. The company was founded in 1999 and is headquartered in Chennai, India.
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