NSEI:DEVIT

Stock Analysis Report

Dev Information Technology

Executive Summary

Dev Information Technology Limited provides information technology enabled services in India.


Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

How has Dev Information Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

6.7%

DEVIT

-0.4%

IN IT

-0.07%

IN Market


1 Year Return

21.8%

DEVIT

7.9%

IN IT

9.5%

IN Market

Return vs Industry: DEVIT exceeded the Indian IT industry which returned 7.9% over the past year.

Return vs Market: DEVIT exceeded the Indian Market which returned 9.5% over the past year.


Shareholder returns

DEVITIndustryMarket
7 Day6.7%-0.4%-0.07%
30 Day29.7%0.2%-1.3%
90 Day41.8%7.1%1.9%
1 Year22.6%21.8%10.8%7.9%11.5%9.5%
3 Yearn/a70.1%60.2%23.6%16.7%
5 Yearn/a55.9%41.6%35.5%22.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Dev Information Technology 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: DEVIT (₹90) is trading below our estimate of fair value (₹278.48)

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


Price To Earnings Ratio

PE vs Industry: DEVIT is good value based on its PE Ratio (9.7x) compared to the IT industry average (10.8x).

PE vs Market: DEVIT is good value based on its PE Ratio (9.7x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DEVIT is overvalued based on its PB Ratio (1.5x) compared to the IN IT industry average (0.9x).


Next Steps

Future Growth

How is Dev Information Technology 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 Dev Information Technology 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 Dev Information Technology performed over the past 5 years?

23.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DEVIT has a large one-off gain of ₹34.4M impacting its September 30 2019 financial results.

Growing Profit Margin: DEVIT's current net profit margins (9.6%) are higher than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: DEVIT's earnings have grown significantly by 23.6% per year over the past 5 years.

Accelerating Growth: DEVIT's earnings growth over the past year (24.3%) exceeds its 5-year average (23.6% per year).

Earnings vs Industry: DEVIT earnings growth over the past year (24.3%) exceeded the IT industry 7.2%.


Return on Equity

High ROE: DEVIT's Return on Equity (15.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Dev Information Technology's financial position?


Financial Position Analysis

Short Term Liabilities: DEVIT's short term assets (₹344.8M) exceed its short term liabilities (₹174.7M).

Long Term Liabilities: DEVIT's short term assets (₹344.8M) exceed its long term liabilities (₹32.8M).


Debt to Equity History and Analysis

Debt Level: DEVIT's debt to equity ratio (34.5%) is considered satisfactory.

Reducing Debt: DEVIT's debt to equity ratio has reduced from 83.8% to 34.5% over the past 5 years.

Debt Coverage: DEVIT's debt is well covered by operating cash flow (46.3%).

Interest Coverage: DEVIT's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: DEVIT's debt is covered by short term assets (assets are 3.1x debt).


Next Steps

Dividend

What is Dev Information Technology's current dividend yield, its reliability and sustainability?

0.53%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%0.6%markettop25%2.6%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: DEVIT's dividend (0.56%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: DEVIT's dividend (0.56%) is low compared to the top 25% of dividend payers in the Indian market (2.59%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, DEVIT has been paying a dividend for less than 10 years.

Growing Dividend: DEVIT has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (5.4%), DEVIT's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Jaiminbhai Shah 0

3yrs

Tenure

₹2,399,000

Compensation

Mr. Jaimin Jagdishbhai Shah is the Founder of Dev Information Technology Pvt. Ltd., and has been its Managing Director since February 21, 2017. Mr. Shah has more than 17 years of experience in IT industry  ...


CEO Compensation Analysis

Compensation vs Market: Jaiminbhai's total compensation ($USD33.40K) is below average for companies of similar size in the Indian market ($USD50.06K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Pranav Pandya
Founder & Chairman of the Board3yrs₹2.40m22.68% 112.7m
Jaiminbhai Shah
Founder3yrs₹2.40m31.46% 156.3m
Harshil Shah
Chief Financial Officer3yrs₹849.00kno data
Vishal Vasu
CTO & Whole Time Director5.6yrs₹1.80m7.12% 35.4m
Krisa Patel
Company Secretary & Compliance Officer2.9yrs₹274.00kno data
Prerak Shah
Director of Enterprise Software Solutions & Whole Time Director5.6yrs₹1.43m3.4% 16.9m
Kaushal Vyas
Head of Business Development - Licensing0yrsno datano data
Chaitali Shah
HR Manager0yrsno datano data
Alpna Sharma
HR Manager0yrsno datano data

3.0yrs

Average Tenure

Experienced Management: DEVIT's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pranav Pandya
Founder & Chairman of the Board3yrs₹2.40m22.68% 112.7m
Jaiminbhai Shah
Founder3yrs₹2.40m31.46% 156.3m
Vishal Vasu
CTO & Whole Time Director5.6yrs₹1.80m7.12% 35.4m
Prerak Shah
Director of Enterprise Software Solutions & Whole Time Director5.6yrs₹1.43m3.4% 16.9m
Hirenbhai Patel
Independent Non Executive Director2.9yrsno datano data
Anand Patel
Independent Non Executive Director2.9yrs₹25.00kno data
Venkata Rama Subba Velamuri
Independent Non-Executive Director2.9yrs₹25.00kno data
Rama Moondra
Non-Executive Woman Independent Director2.9yrs₹20.00kno data

2.9yrs

Average Tenure

46.5yo

Average Age

Experienced Board: DEVIT's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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.


Ownership Breakdown

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


Top Shareholders

Company Information

Dev Information Technology Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dev Information Technology Limited
  • Ticker: DEVIT
  • Exchange: NSEI
  • Founded: 1997
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹496.845m
  • Shares outstanding: 5.52m
  • Website: https://www.devitpl.com

Location

  • Dev Information Technology Limited
  • 14, Aaryans Corporate Park
  • Near Shilaj Railway Crossing
  • Ahmedabad
  • Gujarat
  • 380059
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DEVITNSEI (National Stock Exchange of India)YesEquity SharesININROct 2017

Biography

Dev Information Technology Limited provides information technology enabled services in India. The company offers enterprise resource planning and customer relationship management applications, and application development solutions; and enterprise mobility services, such as mobile application development and mobile device management services. It also provides infrastructure management services, including incident management, problem management, helpdesk services, server management, database administration, network and firewall services, and consulting and managed services; planning, licensing, and implementation services for office 365 solutions; and cybersecurity services. In addition, the company offers cloud computing services, including cloud advisory, cloud management, cloud migration, managed backups, disaster recovery, and unified communication solutions; and digital commerce, digital marketing, and document digitization services. Further, it licenses software products; and provides digital signatures and SSL certificates. Additionally, it offers maintenance services for software products, as well as technical support services; and resells software products. Dev Information Technology Limited was incorporated in 1997 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 Analysis2020/02/24 13:31
End of Day Share Price2020/02/24 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.