NSEI:GSS

Stock Analysis Report

Executive Summary

GSS Infotech Limited provides managed information technology (IT) services in India, Bangladesh, and the United States.


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.5%

GSS

-1.7%

IN IT

-1.2%

IN Market


1 Year Return

-70.1%

GSS

4.0%

IN IT

6.4%

IN Market

Return vs Industry: GSS underperformed the Indian IT industry which returned 4% over the past year.

Return vs Market: GSS underperformed the Indian Market which returned 6.4% over the past year.


Shareholder returns

GSSIndustryMarket
7 Day-6.5%-1.7%-1.2%
30 Day-17.4%-0.4%-3.6%
90 Day2.9%7.4%-0.5%
1 Year-70.1%-70.1%6.7%4.0%8.4%6.4%
3 Year44.1%44.1%69.3%59.4%20.9%14.3%
5 Year25.1%25.1%50.5%36.7%29.8%18.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is GSS 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: GSS (₹35.1) is trading below our estimate of fair value (₹121.05)

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


Price To Earnings Ratio

PE vs Industry: GSS is good value based on its PE Ratio (10.6x) compared to the IT industry average (11x).

PE vs Market: GSS is good value based on its PE Ratio (10.6x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GSS is good value based on its PB Ratio (0.5x) compared to the IN IT industry average (0.9x).


Next Steps

Future Growth

How is GSS Infotech 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 GSS 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 GSS Infotech performed over the past 5 years?

66.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GSS has high quality earnings.

Growing Profit Margin: GSS's current net profit margins (3.9%) are lower than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: GSS has become profitable over the past 5 years, growing earnings by 66.8% per year.

Accelerating Growth: GSS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GSS had negative earnings growth (-62.6%) over the past year, making it difficult to compare to the IT industry average (7.2%).


Return on Equity

High ROE: GSS's Return on Equity (4.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is GSS Infotech's financial position?


Financial Position Analysis

Short Term Liabilities: GSS's short term assets (₹541.0M) exceed its short term liabilities (₹342.2M).

Long Term Liabilities: GSS's short term assets (₹541.0M) exceed its long term liabilities (₹1.1M).


Debt to Equity History and Analysis

Debt Level: GSS is debt free.

Reducing Debt: GSS has no debt compared to 5 years ago when its debt to equity ratio was 9%.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if GSS's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: GSS is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: Insufficient data to determine if GSS has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

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

Current dividend yield vs market & industry

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GSS'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?

3.5yrs

Average management tenure


CEO

Bhargav Marepally (48yo)

0

Mr. Marepally Bhargav Co-Founded GSS America Infotech Limited in 1999 and serves as its Managing Director and Chief Executive Officer. Mr. Bhargav vision is to make GSS America as the most preferred suppli ...


Leadership Team

NamePositionTenureCompensationOwnership
Bhargav Marepally
Co-Founder0yrsno data12.65% 74.7m
Vishnubhatla Jatavallabha
Chief Financial Officer1.7yrsno datano data
Sudhanshu Ravella
Senior Vice Resident of Operations & Strategy0yrsno datano data
Mitra Pokkuluri
General Manager of Finance & Accounts - India0yrsno datano data
Rajeev Shukla
Chief Technology Officer3.5yrsno datano data
Ilyas Ahamed
Senior Executive of Admin0yrsno datano data
Gowri Shanker
Vice President of Inside Sales0yrsno datano data
Ashok Rametra
Chief of Strategy9.7yrsno datano data
Jeffrey Peter
Senior Vice President0yrs₹4.87mno data
Ayan Banerjee
Head of Strategic Sourcing0yrs₹2.20mno data

3.5yrs

Average Tenure

50.5yo

Average Age

Experienced Management: GSS's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bhargav Marepally
Co-Founder0yrsno data12.65% 74.7m
Juttur Ragavendra Das
Non-Executive Independent Director5yrs₹120.00kno data
Gowrisankara Padma Lakkaraju
Non-Executive Independent Additional Director2.4yrs₹100.00kno data
Prabhakara Alokam
Non-Executive Independent Additional Director2.4yrs₹110.00kno data
Rambabu Kaipa
Non-Executive Director1yrs₹20.00kno data
Saikiran Satya Surya Gundu
Non-Executive Non-Independent Director1yrs₹20.00kno data

2.4yrs

Average Tenure

45yo

Average Age

Experienced Board: GSS's board of directors are not considered experienced ( 2.4 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

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


Key Information

  • Name: GSS Infotech Limited
  • Ticker: GSS
  • Exchange: NSEI
  • Founded: 1999
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹590.250m
  • Shares outstanding: 16.94m
  • Website: https://www.gssinfotech.com

Number of Employees


Location

  • GSS Infotech Limited
  • N Heights, Plot No. 12
  • Wing-B, Ground Floor
  • Hyderabad
  • Andhra Pradesh
  • 500081
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532951BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2008
GSSNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2008

Biography

GSS Infotech Limited provides managed information technology (IT) services in India, Bangladesh, and the United States. The company offers remote infrastructure management services, including remote server management and monitoring, service desk, storage management, platform hardening, system integration, cloud hosting, database administration, messaging and collaboration, managed desktop, application packaging and distribution, server management and migration, and dedicated services; and workload automation services. It also provides database management services, such as administration, monitoring, performance tuning, support, consulting, and migration and upgrades; Oracle Database services; Microsoft SQL Database services; Oracle E-Business services; and MySQL support services comprising development, deployment, and management of MySQL applications. In addition, the company offers consulting services, such as mainframe programming, business analysis, application development and engineering, virtualization, system analysis, network engineering and administration, Web development, help desk and technical support, project management, and technical writing, as well as database design, development, and administration services. Further, it provides IT security services; application management services; and testing services, which include test management, testing and QA, test automation, and other services. Additionally, the company offers UniDesk, a cloud based managed service desk; enterprise identity and data management software; IT service management tools; and iBStream, a mobile marketing solution. It serves telecom, banking and financial services, insurance, healthcare, and retail sectors, as well as government organizations. The company was formerly known as GSS America Infotech Limited and changed its name to GSS Infotech Limited in March 2011. GSS Infotech Limited was founded in 1999 and is headquartered in Hyderabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 13:00
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
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.