Dynacons Systems & Solutions (NSEI:DSSL) - Share price, News & Analysis

DSSL fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	5/6
Financial Health	5/6
Dividends	0/6

DSSL Stock Overview

Dynacons Systems & Solutions Limited operates as an IT solutions provider in India.

Rewards

Price-To-Earnings ratio (22.2x) is below the IT industry average (25.4x)

Earnings grew by 92.4% over the past year

Risk Analysis

Highly volatile share price over the past 3 months

High level of non-cash earnings

Shareholders have been diluted in the past year

Does not have a meaningful market cap (₹4B)

Dynacons Systems & Solutions Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Dynacons Systems & Solutions
Historical stock prices
Current Share Price	₹322.15
52 Week High	₹456.70
52 Week Low	₹116.50
Beta	0.94
1 Month Change	20.59%
3 Month Change	44.49%
1 Year Change	108.51%
3 Year Change	954.50%
5 Year Change	1,510.75%
Change since IPO	10,820.34%

Recent News & Updates

Jun 06

Here's Why Dynacons Systems & Solutions (NSE:DSSL) Can Manage Its Debt Responsibly

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

	DSSL	IN IT	IN Market
7D	-20.8%	4.4%	2.3%
1Y	108.5%	-6.1%	-0.9%

Return vs Industry: DSSL exceeded the Indian IT industry which returned -5.1% over the past year.

Return vs Market: DSSL exceeded the Indian Market which returned -1.7% over the past year.

Price Volatility

Is DSSL's price volatile compared to industry and market?
DSSL volatility
DSSL Average Weekly Movement	14.9%
IT Industry Average Movement	7.1%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.9%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: DSSL is more volatile than 90% of Indian stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: DSSL's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of Indian stocks.

About the Company

Founded	Employees	CEO	Website
1995	1,026	Shirish Anjaria	https://www.dynacons.com

Dynacons Systems & Solutions Limited operates as an IT solutions provider in India. The company offers system integration services, such as architecture, integration, and management of custom application and information infrastructures; and datacenter solutions comprising hyper converged infrastructure, server virtualization, software defined storage, enterprise backup and recovery solutions, data replication, DR automation, power and cooling, fire and safety, electrical and civil works, and physical access control solutions. It also provides workplace solutions consisting of design and development of mobility strategies, BYOD implementation integration and migration, monitoring management and end user support, MS infra management tools, IT asset management services, secure virtual desktop, print services, unified communication, and workforce optimization; and network monitoring and management solutions comprising network monitoring of bandwidth utilization, network errors/collisions, network troubleshooting, day-to-day network operations, network performance monitoring, and tuning network operating systems.

Dynacons Systems & Solutions Fundamentals Summary

How do Dynacons Systems & Solutions's earnings and revenue compare to its market cap?
DSSL fundamental statistics
Market Cap	₹3.65b
Earnings (TTM)	₹164.29m
Revenue (TTM)	₹6.54b

22.2x

P/E Ratio

0.6x

P/S Ratio

Is DSSL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DSSL income statement (TTM)
Revenue	₹6.54b
Cost of Revenue	₹6.16b
Gross Profit	₹380.29m
Other Expenses	₹216.00m
Earnings	₹164.29m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	14.57
Gross Margin	5.82%
Net Profit Margin	2.51%
Debt/Equity Ratio	90.8%

How did DSSL perform over the long term?

See historical performance and comparison

Dividends

0.2%

Current Dividend Yield

3%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is DSSL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DSSL?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for DSSL. This is calculated by dividing DSSL's market cap by their current preferred multiple.
What is DSSL's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹3.65b

DSSL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.6x
Enterprise Value/EBITDA	12.9x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does DSSL's PE Ratio compare to its peers?

DSSL PE Ratio vs Peers

The above table shows the PE ratio for DSSL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	20.1x

Forward PE

Price-To-Earnings vs Peers: DSSL is expensive based on its Price-To-Earnings Ratio (22.2x) compared to the peer average (20.1x).

Price to Earnings Ratio vs Industry

How does DSSL's PE Ratio compare vs other companies in the Indian IT Industry?

Price-To-Earnings vs Industry: DSSL is good value based on its Price-To-Earnings Ratio (22.2x) compared to the Indian IT industry average (25.4x)

Price to Earnings Ratio vs Fair Ratio

What is DSSL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DSSL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	22.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate DSSL's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of DSSL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DSSL (₹322.15) is trading above our estimate of fair value (₹7.18)

Significantly Below Fair Value: DSSL is trading above our estimate of fair value.

Price to Earnings Growth Ratio

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

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Future Growth

How is Dynacons Systems & Solutions forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

11.2%

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 Dynacons Systems & Solutions 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.

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Check out Dynacons Systems & Solutions's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.
Dynacons Systems & Solutions competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Dynacons Systems & Solutions performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

41.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DSSL has a high level of non-cash earnings.

Growing Profit Margin: DSSL's current net profit margins (2.5%) are higher than last year (2%).

Past Earnings Growth Analysis

Earnings Trend: DSSL's earnings have grown significantly by 41.5% per year over the past 5 years.

Accelerating Growth: DSSL's earnings growth over the past year (92.4%) exceeds its 5-year average (41.5% per year).

Earnings vs Industry: DSSL earnings growth over the past year (92.4%) exceeded the IT industry 38.6%.

Return on Equity

High ROE: DSSL's Return on Equity (24.2%) is considered high.

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Financial Health

How is Dynacons Systems & Solutions's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: DSSL's short term assets (₹2.9B) exceed its short term liabilities (₹2.2B).

Long Term Liabilities: DSSL's short term assets (₹2.9B) exceed its long term liabilities (₹159.6M).

Debt to Equity History and Analysis

Debt Level: DSSL's net debt to equity ratio (38.7%) is considered satisfactory.

Reducing Debt: DSSL's debt to equity ratio has reduced from 98.6% to 90.8% over the past 5 years.

Debt Coverage: DSSL's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: DSSL's interest payments on its debt are well covered by EBIT (3.3x coverage).

Balance Sheet

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Dividend

What is Dynacons Systems & Solutions's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.15%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: DSSL's dividend (0.15%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.44%).

High Dividend: DSSL's dividend (0.15%) is low compared to the top 25% of dividend payers in the Indian market (1.9%).

Stability and Growth of Payments

Stable Dividend: DSSL is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: DSSL is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: DSSL is not paying a notable dividend for the Indian market.

Cash Payout to Shareholders

Cash Flow Coverage: DSSL is paying a dividend but the company has no free cash flows.

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Management

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

22.5yrs

Average board tenure

CEO

Shirish Anjaria (77 yo)

12.33yrs

Tenure

₹3,000,000

Compensation

Mr. Shirish Mansingh Anjaria has been Managing Director and Chairman of Dynacons Systems & Solutions Ltd., since February 1, 2010. Mr. Anjaria served as Managing Director at Ducon Infratechnolgies Limited....

CEO Compensation Analysis

Compensation vs Market: Shirish's total compensation ($USD38.38K) is about average for companies of similar size in the Indian market ($USD38.35K).

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

Board Members

Experienced Board: DSSL's board of directors are seasoned and experienced ( 22.5 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.

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.3%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31