NSEI:AIRAN

Stock Analysis Report

Executive Summary

Airan Limited, together with its subsidiaries, provides consulting, technology, outsourcing, and digital and software services in India.


Snowflake Analysis

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.9%

AIRAN

1.7%

IN IT

-0.4%

IN Market


1 Year Return

-52.9%

AIRAN

5.7%

IN IT

11.1%

IN Market

Return vs Industry: AIRAN underperformed the Indian IT industry which returned 4.6% over the past year.

Return vs Market: AIRAN underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

AIRANIndustryMarket
7 Day-6.9%1.7%-0.4%
30 Day-4.8%0.4%-1.5%
90 Day16.4%5.1%3.3%
1 Year-52.9%-52.9%8.5%5.7%13.0%11.1%
3 Yearn/a74.0%63.8%25.3%18.6%
5 Yearn/a56.3%41.9%35.4%23.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Airan 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: AIRAN (₹12.8) is trading below our estimate of fair value (₹36.06)

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


Price To Earnings Ratio

PE vs Industry: AIRAN is poor value based on its PE Ratio (25.3x) compared to the IT industry average (11.9x).

PE vs Market: AIRAN is poor value based on its PE Ratio (25.3x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AIRAN is overvalued based on its PB Ratio (2.1x) compared to the IN IT industry average (0.9x).


Next Steps

Future Growth

How is Airan 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 Airan 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 Airan performed over the past 5 years?

34.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AIRAN has high quality earnings.

Growing Profit Margin: AIRAN's current net profit margins (11.8%) are lower than last year (12.7%).


Past Earnings Growth Analysis

Earnings Trend: AIRAN's earnings have grown significantly by 34.9% per year over the past 5 years.

Accelerating Growth: AIRAN's earnings growth over the past year (11%) is below its 5-year average (34.9% per year).

Earnings vs Industry: AIRAN earnings growth over the past year (11%) exceeded the IT industry 7.4%.


Return on Equity

High ROE: AIRAN's Return on Equity (8.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Airan's financial position?


Financial Position Analysis

Short Term Liabilities: AIRAN's short term assets (₹466.8M) exceed its short term liabilities (₹109.0M).

Long Term Liabilities: AIRAN's short term assets (₹466.8M) exceed its long term liabilities (₹170.1M).


Debt to Equity History and Analysis

Debt Level: AIRAN's debt to equity ratio (13.2%) is considered satisfactory.

Reducing Debt: AIRAN's debt to equity ratio has reduced from 41.2% to 13.2% over the past 5 years.

Debt Coverage: AIRAN's debt is well covered by operating cash flow (96.6%).

Interest Coverage: AIRAN's interest payments on its debt are well covered by EBIT (13.2x coverage).


Balance Sheet

Inventory Level: AIRAN has a high level of physical assets or inventory.

Debt Coverage by Assets: AIRAN's debt is covered by short term assets (assets are 4.7x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.5%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if AIRAN'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 AIRAN'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?

3.1yrs

Average management tenure


CEO

Sandeepkumar Agrawal (50yo)

3.1yrs

Tenure

₹1,621,416

Compensation

Mr. Sandeepkumar Vishwanath Agrawal is a Promoter of Airan Limited. Mr. Agrawal has been the Managing Director and Chairman at Airan Limited since January 5, 2017. His functional responsibility in Airan in ...


CEO Compensation Analysis

Compensation vs Market: Sandeepkumar's total compensation ($USD22.75K) is below average for companies of similar size in the Indian market ($USD49.96K).

Compensation vs Earnings: Sandeepkumar's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sandeepkumar Agrawal
Chairman & MD3.1yrs₹1.62m29.92% 478.7m
Krunal Jethva
Chief Financial Officer3.1yrsno datano data
Ruchika Jain
Company Secretary & Compliance Officer0yrsno datano data
Poonam Agrawal
Executive Director16.5yrs₹1.62m9.92% 158.7m
Allwyn Christian
Chief Operating Officer5.2yrs₹634.00kno data
Ankur Khatri
Head of Information Technology0yrs₹55.00kno data
Bharat Marwadi
General Manager of Banking Operations0yrs₹482.00kno data
Navdeep Yadav
General Manager0yrs₹445.00kno data
Pradip Jivani
Assistant General Manager of CMS Operations0yrs₹335.00kno data
Mayank Patel
Assistant General Manager of CMS Operations0yrs₹402.00kno data

3.1yrs

Average Tenure

Experienced Management: AIRAN's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sandeepkumar Agrawal
Chairman & MD3.1yrs₹1.62m29.92% 478.7m
Poonam Agrawal
Executive Director16.5yrs₹1.62m9.92% 158.7m
Sarita Aggarwal
Non Executive Director3.1yrs₹22.00kno data
Bhoomika Gupta
Non-Executive Independent Director3.1yrs₹38.00kno data
Siddharth Dugar
Non-Executive Independent Director3.1yrs₹36.00kno data
Ajit Jain
Non-Executive Independent Director2.7yrs₹42.00kno data
Jayesh Jain
Non-Executive Independent director2yrs₹8.00kno data
Manish Iyer
Non-Executive Independent Director1.5yrs₹8.00kno data

3.1yrs

Average Tenure

46yo

Average Age

Experienced Board: AIRAN's board of directors are considered experienced (3.1 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Airan Limited
  • Ticker: AIRAN
  • Exchange: NSEI
  • Founded: 1989
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: ₹1.600b
  • Shares outstanding: 125.02m
  • Website: https://www.airanlimited.in

Number of Employees


Location

  • Airan Limited
  • 408 Kirtiman Complex
  • Behind Rembrandt Building
  • Ahmedabad
  • Gujarat
  • 380006
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AIRANNSEI (National Stock Exchange of India)INR2ININRNo data
AIRANNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2017

Biography

Airan Limited, together with its subsidiaries, provides consulting, technology, outsourcing, and digital and software services in India. It offers information technology (IT) and IT-enabled services, including banking transaction processing services and document management services for telecommunication companies, Internet services providers, and payment banks. The company offers cash management, door step banking and pickup, CTS clearing processing, processing of bank account opening forms, e-stamping certificate/e-registration fee collection, records management, address and credit verification, contact center, back office management, and software development services, as well as manages collection counters. It provides its services for banking, telecom, software development, field operations, and back-office and front-office management sectors. Airan Limited was founded in 1989 and is headquartered in Ahmedabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/14 13:06
End of Day Share Price2020/02/13 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.