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AGC Networks

NSEI:AGCNET
Snowflake Description

Solid track record with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AGCNET
NSEI
₹4B
Market Cap
  1. Home
  2. IN
  3. Software
Company description

AGC Networks Limited operates as an information, communications, and technology solutions provider and integrator worldwide. The last earnings update was 76 days ago. More info.


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  • AGC Networks has significant price volatility in the past 3 months.
AGCNET Share Price and Events
7 Day Returns
-3.6%
NSEI:AGCNET
1%
IN IT
-1.9%
IN Market
1 Year Returns
-2.8%
NSEI:AGCNET
21.2%
IN IT
-2.8%
IN Market
AGCNET Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
AGC Networks (AGCNET) -3.6% -1.1% -1% -2.8% 64.7% 115.5%
IN IT 1% 5.3% 10.3% 21.2% 47.8% 82%
IN Market -1.9% 1.2% 5.1% -2.8% 38.3% 71%
1 Year Return vs Industry and Market
  • AGCNET underperformed the IT industry which returned 21.2% over the past year.
Price Volatility
AGCNET
Industry
5yr Volatility vs Market

Value

 Is AGC Networks undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of AGC Networks to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for AGC Networks.

NSEI:AGCNET Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 18.1%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:AGCNET
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.056 (1 + (1- 35%) (39.86%))
1.221
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.22
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.221 * 8.6%)
18.05%

Discounted Cash Flow Calculation for NSEI:AGCNET using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for AGC Networks 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.

NSEI:AGCNET DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 18.05%)
2019 328.29 Est @ 8.84% 278.09
2020 356.04 Est @ 8.45% 255.49
2021 385.18 Est @ 8.18% 234.13
2022 415.96 Est @ 7.99% 214.18
2023 448.66 Est @ 7.86% 195.69
2024 483.51 Est @ 7.77% 178.65
2025 520.75 Est @ 7.7% 162.99
2026 560.62 Est @ 7.66% 148.64
2027 603.36 Est @ 7.62% 135.51
2028 649.23 Est @ 7.6% 123.51
Present value of next 10 years cash flows ₹1,926.87
NSEI:AGCNET DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹649.23 × (1 + 7.55%) ÷ (18.05% – 7.55%)
₹6,649.63
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹6,649.63 ÷ (1 + 18.05%)10
₹1,265.08
NSEI:AGCNET Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹1,926.87 + ₹1,265.08
₹3,191.95
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹3,191.95 / 29.74
₹107.34
NSEI:AGCNET Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:AGCNET represents 1.0179x of BSE:500463
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.0179x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 107.34 x 1.0179
₹109.26
Value per share (INR) From above. ₹109.26
Current discount Discount to share price of ₹113.70
= -1 x (₹113.70 - ₹109.26) / ₹109.26
-4.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of AGC Networks is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 AGC Networks's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are AGC Networks's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:AGCNET PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹10.76
BSE:500463 Share Price ** BSE (2019-04-24) in INR ₹111.7
India IT Industry PE Ratio Median Figure of 84 Publicly-Listed IT Companies 15.67x
India Market PE Ratio Median Figure of 2,739 Publicly-Listed Companies 16.02x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of AGC Networks.

NSEI:AGCNET PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:500463 Share Price ÷ EPS (both in INR)

= 111.7 ÷ 10.76

10.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AGC Networks is good value based on earnings compared to the IN IT industry average.
  • AGC Networks is good value based on earnings compared to the India market.
Price based on expected Growth
Does AGC Networks's expected growth come at a high price?
Raw Data
NSEI:AGCNET PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.38x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
-4.2%per year
India IT Industry PEG Ratio Median Figure of 21 Publicly-Listed IT Companies 1.31x
India Market PEG Ratio Median Figure of 586 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for AGC Networks, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on AGC Networks's assets?
Raw Data
NSEI:AGCNET PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹39.05
BSE:500463 Share Price * BSE (2019-04-24) in INR ₹111.7
India IT Industry PB Ratio Median Figure of 108 Publicly-Listed IT Companies 1.36x
India Market PB Ratio Median Figure of 3,630 Publicly-Listed Companies 1.09x
NSEI:AGCNET PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:500463 Share Price ÷ Book Value per Share (both in INR)

= 111.7 ÷ 39.05

2.86x

* Primary Listing of AGC Networks.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AGC Networks is overvalued based on assets compared to the IN IT industry average.
X
Value checks
We assess AGC Networks's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. AGC Networks has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is AGC Networks expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover AGC Networks, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-4.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is AGC Networks expected to grow at an attractive rate?
  • AGC Networks's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.6%.
Growth vs Market Checks
  • AGC Networks's earnings are expected to decrease over the next 1-3 years, this is below the India market average.
  • Unable to compare AGC Networks's revenue growth to the India market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NSEI:AGCNET Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:AGCNET Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts -4.2%
India IT Industry Earnings Growth Rate Market Cap Weighted Average 9.5%
India IT Industry Revenue Growth Rate Market Cap Weighted Average 9.4%
India Market Earnings Growth Rate Market Cap Weighted Average 18.3%
India Market Revenue Growth Rate Market Cap Weighted Average 11.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:AGCNET Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:AGCNET Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 8,290 280
2018-09-30 7,885 227
2018-06-30 7,640 193
2018-03-31 7,334 521 149
2017-12-31 7,159 119
2017-09-30 7,072 106
2017-06-30 7,311 116
2017-03-31 7,796 42 103
2016-12-31 8,016 -63
2016-09-30 8,519 -132
2016-06-30 8,734 -331
2016-03-31 8,814 292 -346

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • AGC Networks's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Unable to determine if AGC Networks is high growth as no revenue estimate data is available.
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.
Raw Data
NSEI:AGCNET Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from AGC Networks Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:AGCNET Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 10.76
2018-09-30 8.45
2018-06-30 7.22
2018-03-31 5.24
2017-12-31 3.90
2017-09-30 3.44
2017-06-30 3.72
2017-03-31 3.63
2016-12-31 -2.21
2016-09-30 -4.63
2016-06-30 -10.82
2016-03-31 -12.15

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if AGC Networks will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess AGC Networks's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
AGC Networks has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has AGC Networks performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare AGC Networks's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • AGC Networks has delivered over 20% year on year earnings growth in the past 5 years.
  • AGC Networks's 1-year earnings growth exceeds its 5-year average (134.6% vs 75.5%)
  • AGC Networks's earnings growth has exceeded the IN IT industry average in the past year (134.6% vs 24.5%).
Earnings and Revenue History
AGC Networks's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from AGC Networks Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:AGCNET Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 8,290.30 279.70 130.60
2018-09-30 7,885.10 226.60 130.60
2018-06-30 7,640.10 192.90 130.60
2018-03-31 7,333.90 149.30 130.60
2017-12-31 7,159.30 119.20 199.80
2017-09-30 7,071.90 106.20 199.80
2017-06-30 7,311.40 116.30
2017-03-31 7,796.30 103.30 207.20
2016-12-31 8,016.20 -63.00 264.50
2016-09-30 8,519.40 -131.80 264.50
2016-06-30 8,733.70 -330.50 264.50
2016-03-31 8,813.80 -345.90 264.50
2015-12-31 9,039.70 254.40 614.80
2015-09-30 9,015.10 265.20 608.90
2015-06-30 9,123.20 342.80 622.50
2015-03-31 8,908.90 147.70 222.00
2014-12-31 8,272.40 -875.00 1,003.10
2014-09-30 7,837.00 -1,736.00 1,061.00
2014-06-30 7,749.00 -2,067.00 1,158.00
2014-03-31 7,748.40 -2,715.90 1,357.40
2013-12-31 8,766.00 -2,837.00 2,740.00
2013-09-30 9,363.00 -1,802.00 2,626.00
2013-06-30 10,045.00 -1,241.00 2,572.00
2013-03-31 10,501.00 37.00 931.00
2012-12-31 10,777.38 694.19 1,751.98
2012-09-30 10,697.43 737.19 1,849.71
2012-06-30 10,446.89 791.41 1,604.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst AGC Networks has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • AGC Networks used its assets more efficiently than the IN IT industry average last year based on Return on Assets.
  • AGC Networks has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess AGC Networks's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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.
AGC Networks has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is AGC Networks's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up AGC Networks's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • AGC Networks's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • AGC Networks's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of AGC Networks's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from AGC Networks Company Filings, last reported 3 months ago.

NSEI:AGCNET Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,118.60 1,400.50 167.80
2018-09-30 1,118.60 1,400.50 167.80
2018-06-30 901.10 1,391.50 92.20
2018-03-31 901.10 1,391.50 92.20
2017-12-31 726.30 1,691.40 733.20
2017-09-30 726.30 1,691.40 733.20
2017-06-30 784.00 1,740.30 195.20
2017-03-31 698.90 1,739.30 159.60
2016-12-31 736.70 1,746.50 300.80
2016-09-30 736.70 1,746.50 300.80
2016-06-30 686.30 1,616.30 376.20
2016-03-31 686.30 1,616.30 376.20
2015-12-31 847.40 1,678.90 292.50
2015-09-30 847.40 1,678.90 292.50
2015-06-30 1,016.30 1,460.40 357.10
2015-03-31 1,016.30 1,460.40 357.10
2014-12-31 596.00 1,774.00 372.00
2014-09-30 596.00 1,774.00 372.00
2014-06-30 740.00 2,379.00 1,080.00
2014-03-31 739.80 2,379.90 1,079.30
2013-12-31 2,320.00 3,294.00 1,339.00
2013-09-30 2,320.00 3,294.00 1,339.00
2013-06-30 3,056.00 3,187.00 1,191.00
2013-03-31 3,056.00 3,187.00 1,191.00
2012-12-31
2012-09-30
2012-06-30 3,225.00 1,288.00 1,472.00
  • AGC Networks's level of debt (125.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (142.6% vs 125.2% today).
  • Debt is well covered by operating cash flow (37.2%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.9x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess AGC Networks's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. AGC Networks has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is AGC Networks's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from AGC Networks dividends.
If you bought ₹2,000 of AGC Networks shares you are expected to receive ₹0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate AGC Networks's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate AGC Networks's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:AGCNET Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
India IT Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 1.5%
India Market Average Dividend Yield Market Cap Weighted Average of 1400 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:AGCNET Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2014-02-14 0.000 0.000
2013-11-18 0.000 0.000
2013-08-12 0.000 0.000
2013-07-23 0.000 0.000
2012-07-26 5.000 3.924
2012-07-25 5.000 3.825
2011-05-23 1.125 1.422
2010-11-16 2.250 2.281
2010-11-15 2.250 1.850
2009-09-30 1.750 1.588

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as AGC Networks has not reported any payouts.
  • Unable to verify if AGC Networks's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of AGC Networks's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as AGC Networks has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess AGC Networks's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can AGC Networks afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. AGC Networks has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of AGC Networks's salary, the management and board of directors tenure and is there insider trading?

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.
CEO
Sanjeev Verma
COMPENSATION ₹0
AGE 51
TENURE AS CEO 3.2 years
CEO Bio

Mr. Sanjeev Verma has been an Whole Time Director of AGC Networks Limited since April 5, 2016 and its Chief Executive Officer since February 15, 2016. Mr. Verma has been President of Black Box Corporation since January 7, 2019 and serves as its Chief Executive Officer. Mr. Verma served as the President of International Operations and Chief Executive Officer of Americas at AGC Networks, Inc., until since April 5, 2016. He served as the President of AGC Networks Limited and also served as its President of International Operations and Chief Executive Officer of USA Business. He has been instrumental in overseeing growth of the business portfolios of Sales, Business development and the P&L, globally at AGC. A passionate leader with expertise in global projects, he has led key assignments in the areas of telecom, enterprise network solutions, IT services and IT outsourcing, not just in India but across the Asia Pacific region and the United States. Mr. Verma is a technology veteran with over 20 years of rich experience in the global ICT domain is a visionary with a deep understanding of various geographies. In his current role at AGC Networks, he has been a significant asset to its roadmap in India and its expansion onto foreign shores. He served as President of Global Sales & Business Operations - AGC Networks Limited an affiliate of Aegis Limited. Mr. Verma served as an Executive Vice President of Global Sales and Business Operations at Aegis Tech Limited. He was with Wipro Networks since 2006. He held key roles with 3D Networks and GTL in the U.S. and India. He has over 20 years of experience in the areas of business operations, business development and sales and marketing. He globally oversaw various key assignments in the areas of telecom, enterprise network solutions and IT services and IT outsourcing in India, the Asia Pacific region and the US. He served as a Whole Time Director of AGC Networks Limited since August 4, 2015 until April 5, 2016 and its Executive Director since May 15, 2014 until August 4, 2015. Mr. Verma holds a post-graduate degree in management.

CEO Compensation
  • Insufficient data for Sanjeev to compare compensation growth.
  • Sanjeev's remuneration is lower than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the AGC Networks management team in years:

1.2
Average Tenure
51
Average Age
  • The average tenure for the AGC Networks management team is less than 2 years, this suggests a new team.
Management Team

Sanjeev Verma

TITLE
CEO & Whole Time Director
AGE
51
TENURE
3.2 yrs

Deepak Bansal

TITLE
Chief Financial Officer
COMPENSATION
₹17M
AGE
43
TENURE
1.2 yrs

Meheriar Patel

TITLE
Chief Information Officer
AGE
51

Aditya Goswami

TITLE
Company Secretary & Compliance officer
COMPENSATION
₹1M
TENURE
1.2 yrs

Neelam Kapoor

TITLE
Head of Marketing & VP
AGE
51

Abhinav Sharma

TITLE
VP and Sales Head of India & SAARC
AGE
46

Mahua Mukherjee

TITLE
Chief People Officer & Additional Director
AGE
51

Pravin Shinde

TITLE
Head of Service Delivery & VP
AGE
46

Jagdish Mhalgi

TITLE
Head of Customer Support & Services and VP
AGE
51

Rajat Varma

TITLE
Regional Vice President of West
AGE
44
Board of Directors Tenure

Average tenure and age of the AGC Networks board of directors in years:

1.1
Average Tenure
51
Average Age
  • The average tenure for the AGC Networks board of directors is less than 3 years, this suggests a new board.
Board of Directors

Sujay Sheth

TITLE
Non-Executive & Independent Chairman
COMPENSATION
₹1M
AGE
47

Sanjeev Verma

TITLE
CEO & Whole Time Director
AGE
51
TENURE
4.9 yrs

Mahua Mukherjee

TITLE
Chief People Officer & Additional Director
AGE
51
TENURE
1 yrs

Dilip Thakkar

TITLE
Independent Additional Director
COMPENSATION
₹150K
AGE
82
TENURE
1.2 yrs

Naresh Kothari

TITLE
Non-Executive Additional Director
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess AGC Networks's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. AGC Networks has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Did Business Growth Power AGC Networks's (NSE:AGCNET) Share Price Gain of 120%?

During the five years of share price growth, AGC Networks moved from a loss to profitability. … Indeed, the AGC Networks share price has gained 69% in three years. … This EPS growth is lower than the 19% average annual increase in the share price over three years.

Simply Wall St -

Should We Be Delighted With AGC Networks Limited's (NSE:AGCNET) ROE Of 25%?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.25 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Kind Of Share Price Volatility Should You Expect For AGC Networks Limited (NSE:AGCNET)?

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand AGC Networks Limited (NSE:AGCNET)

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … AGC Networks has a price to earnings ratio of 13.49, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Do Institutions Own AGC Networks Limited (NSE:AGCNET) Shares?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … We also tend to see lower insider ownership in companies that were previously publicly owned. … AGC Networks is not a large company by global standards.

Simply Wall St -

Should We Be Delighted With AGC Networks Limited's (NSE:AGCNET) ROE Of 20%?

Our data shows AGC Networks has a return on equity of 20% for the last year. … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.20 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Should You Know About AGC Networks Limited's (NSE:AGCNET) Capital Returns?

This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Therefore, looking at how efficiently AGC Networks is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

Do You Know What AGC Networks Limited's (NSE:AGCNET) P/E Ratio Means?

To keep it practical, we'll show how AGC Networks Limited's (NSE:AGCNET) P/E ratio could help you assess the value on offer. … AGC Networks has a price to earnings ratio of 7.78, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

How Has AGC Networks Limited's (NSE:AGCNET) Earnings Fared Against The Long Term Trend

Today I will assess AGCNET's recent performance announced on 30 June 2018 and weigh these figures against its long-term trend and industry movements. … Did AGCNET's recent earnings growth beat the long-term trend and the industry. … AGCNET recently turned a profit of ₹192.90m (most recent trailing twelve-months) compared to its average loss of -₹309.74m over the past five years

Simply Wall St -

Should You Be Tempted To Sell AGC Networks Limited (NSE:AGCNET) Because Of Its PE Ratio?

and want to better understand how you can grow your money by investing in AGC Networks Limited (NSE:AGCNET). … AGC Networks Limited (NSE:AGCNET) is currently trading at a trailing P/E of 23x, which is higher than the industry average of 18.3x. … While this makes AGCNET appear like a stock to avoid or sell if you own it, you might change your mind after I explain the assumptions behind the P/E ratio.

Simply Wall St -

Company Info

Description

AGC Networks Limited operates as an information, communications, and technology solutions provider and integrator worldwide. The company offers unified communication solutions, such as IP communication multimedia integration, and collaboration solutions. It also provides network infrastructure and data center solutions comprising switching and routing, and wireless and mobility solutions, as well as computing, storage, and virtualization solutions in the data center and virtualization space. In addition, the company offers a portfolio of cyber security services, which include certification, compliance, implementation, management, and audit services. Further, it provides digital transformation and applications, such as customer engagement and loyalty, customer journey, agent assisted service, branch queue management, voice biometrics, social media analytics, unified desktop, and IoT based big data analytics solutions, as well as self-service platform. Additionally, the company offers services, such as on-site support; remote maintenance of infrastructure and application support; managed services that include enterprise service management, integrated management data center services, and cloud computing services; and professional services comprising consulting and analysis, deployment services, customization and integration, and audit and review services. It serves banking, financial service, and insurance; education; healthcare; travel and hospitality; IT/ITES; and manufacturing industries. The company was founded in 1986 and is based in Mumbai, India. AGC Networks Limited is a subsidiary of Essar Telecom Limited.

Details
Name: AGC Networks Limited
AGCNET
Exchange: NSEI
Founded: 1986
₹3,513,503,229
29,737,649
Website: http://www.agcnetworks.com
Address: AGC Networks Limited
Equinox Business Park,
Tower 1 (Peninsula Techno Park),
Mumbai,
Maharashtra, 400070,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 500463 Equity Shares Mumbai Stock Exchange IN INR 16. Feb 1995
NSEI AGCNET Equity Shares National Stock Exchange of India IN INR 16. Feb 1995
Number of employees
Current staff
Staff numbers
666
AGC Networks employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/24 12:48
End of day share price update: 2019/04/24 00:00
Last earnings filing: 2019/02/07
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.