NSEI:ADROITINFO

Stock Analysis Report

Executive Summary

Adroit Infotech Limited operates as a SAP consulting company in India and internationally.

Rewards

Trading at 93% below its fair value

Risk Analysis

Does not have a meaningful market cap (₹130M)

Highly volatile share price over past 3 months

Does not have meaningful revenue (₹91M)



Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

How has Adroit Infotech's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

ADROITINFO

1.4%

IN IT

1.9%

IN Market


1 Year Return

-66.9%

ADROITINFO

11.6%

IN IT

8.1%

IN Market

Return vs Industry: ADROITINFO underperformed the Indian IT industry which returned 13.6% over the past year.

Return vs Market: ADROITINFO underperformed the Indian Market which returned 6.7% over the past year.


Shareholder returns

ADROITINFOIndustryMarket
7 Day0%1.4%1.9%
30 Day-24.2%1.9%3.1%
90 Day-10.9%5.9%6.5%
1 Year-66.9%-66.9%14.5%11.6%10.1%8.1%
3 Year-91.9%-91.9%80.1%69.6%35.1%28.0%
5 Yearn/a67.2%51.8%36.6%24.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Adroit Infotech 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: ADROITINFO (₹6.4) is trading below our estimate of fair value (₹92.04)

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


Price To Earnings Ratio

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

PE vs Market: ADROITINFO 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 ADROITINFO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ADROITINFO is good value based on its PB Ratio (0.3x) compared to the IN IT industry average (0.8x).


Next Steps

Future Growth

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

8.9%

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 Adroit Infotech 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 Adroit Infotech performed over the past 5 years?

3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADROITINFO is currently unprofitable.

Growing Profit Margin: ADROITINFO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ADROITINFO is unprofitable, but has reduced losses over the past 5 years at a rate of 3.3% per year.

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

Earnings vs Industry: ADROITINFO is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (6.6%).


Return on Equity

High ROE: ADROITINFO has a negative Return on Equity (-1.62%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Adroit Infotech's financial position?


Financial Position Analysis

Short Term Liabilities: ADROITINFO's short term assets (₹391.3M) exceed its short term liabilities (₹145.9M).

Long Term Liabilities: ADROITINFO's short term assets (₹391.3M) exceed its long term liabilities (₹1.8M).


Debt to Equity History and Analysis

Debt Level: ADROITINFO's debt to equity ratio (1.1%) is considered satisfactory.

Reducing Debt: ADROITINFO's debt to equity ratio has reduced from 9.2% to 1.1% over the past 5 years.

Debt Coverage: ADROITINFO's debt is well covered by operating cash flow (3624.5%).

Interest Coverage: Insufficient data to determine if ADROITINFO's interest payments on its debt are well covered by EBIT.


Balance Sheet

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

Debt Coverage by Assets: ADROITINFO's debt is covered by short term assets (assets are 97.1x debt).


Next Steps

Dividend

What is Adroit Infotech's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.2%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if ADROITINFO's dividend payments have been increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ADROITINFO'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 Adroit Infotech's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average board tenure


CEO

Sunkerneni Reddy 0

0yrs

Tenure

₹3,604,000

Compensation

Mr. Sunkerneni Sudhakiran Reddy serves as Managing Director of Sphere Global Services Limited and served as its Chief Financial Officer since November 7, 2014. Mr. Reddy serves as Chairman of Adroit Infote ...


CEO Compensation Analysis

Compensation vs Market: Sunkerneni's total compensation ($USD50.86K) is about average for companies of similar size in the Indian market ($USD50.75K).

Compensation vs Earnings: Sunkerneni's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

2.5yrs

Average Tenure

Experienced Board: ADROITINFO's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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 not been meaningfully diluted in the past year.


Management Team

  • Sunkerneni Reddy

    Chairman & MD

    • Compensation: ₹3.60m
  • Venkateswara Narepalem

    Chief Financial Officer

    • Tenure: 0.9yrs
    • Compensation: ₹1.34m
  • Shradha Somani

    Company Secretary & Compliance Officer

    • Tenure: 0.7yrs

Board Members

  • Sunder Nyaypathi

    Additional director

    • Tenure: 0.5yrs
  • Sunkerneni Reddy

    Chairman & MD

    • Compensation: ₹3.60m
  • Sunitha Kuchakulla (37yo)

    Independent Director

    • Tenure: 3.7yrs
  • Patlola Venkata Reddy

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: ₹4.00k

Company Information

Adroit Infotech Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Adroit Infotech Limited
  • Ticker: ADROITINFO
  • Exchange: NSEI
  • Founded: 1990
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹123.305m
  • Shares outstanding: 18.27m
  • Website: https://www.adroitinfotech.com

Number of Employees


Location

  • Adroit Infotech Limited
  • Plot No. 7A, MLA Colony
  • Road No. 12
  • Hyderabad
  • Andhra Pradesh
  • 500034
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532172BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2000
ADROITINFONSEI (National Stock Exchange of India)YesEquity SharesININRJan 2000

Biography

Adroit Infotech Limited operates as a SAP consulting company in India and internationally. It offers a range of business solutions, including business and technology consulting, enterprise solutions, systems integration, custom application development, application maintenance and production support, infrastructure management, cloud ecosystem integration, product engineering and lifecycle solutions, business process management, software products, and business platforms and solutions. The company was formerly known as Sphere Global Services Limited and changed its name to Adroit Infotech Limited in February 2018. Adroit Infotech Limited was incorporated in 1990 and is based in Hyderabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/19 12:52
End of Day Share Price2020/01/17 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.