NSEI:INSPIRISYS

Stock Analysis Report

Inspirisys Solutions

Executive Summary

Inspirisys Solutions Limited operates as an information technology services and consulting company in India and internationally.


Snowflake Analysis

Good value with questionable track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.7%

INSPIRISYS

-4.0%

IN IT

-2.2%

IN Market


1 Year Return

-63.6%

INSPIRISYS

-19.9%

IN IT

-30.7%

IN Market

Return vs Industry: INSPIRISYS underperformed the Indian IT industry which returned -16.8% over the past year.

Return vs Market: INSPIRISYS underperformed the Indian Market which returned -29.6% over the past year.


Shareholder returns

INSPIRISYSIndustryMarket
7 Day-1.7%-4.0%-2.2%
30 Day-30.0%-19.5%-25.9%
90 Day-45.8%-23.4%-30.5%
1 Year-63.6%-63.6%-17.4%-19.9%-29.3%-30.7%
3 Year-72.1%-72.1%31.0%22.9%-18.8%-23.3%
5 Year-72.6%-72.6%20.5%8.9%-8.7%-13.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Inspirisys Solutions undervalued compared to its fair value and its price relative to the market?

31.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: INSPIRISYS (₹20.5) is trading below our estimate of fair value (₹30.04)

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


Price To Earnings Ratio

PE vs Industry: INSPIRISYS is good value based on its PE Ratio (5.8x) compared to the IT industry average (7x).

PE vs Market: INSPIRISYS is good value based on its PE Ratio (5.8x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: INSPIRISYS is overvalued based on its PB Ratio (3.8x) compared to the IN IT industry average (0.7x).


Next Steps

Future Growth

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

8.1%

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 Inspirisys 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.


Next Steps

Past Performance

How has Inspirisys Solutions performed over the past 5 years?

22.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INSPIRISYS has a large one-off gain of ₹56.7M impacting its December 31 2019 financial results.

Growing Profit Margin: INSPIRISYS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: INSPIRISYS has become profitable over the past 5 years, growing earnings by 22.8% per year.

Accelerating Growth: INSPIRISYS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: INSPIRISYS has become profitable in the last year, making it difficult to compare its past year earnings growth to the IT industry (7.2%).


Return on Equity

High ROE: Whilst INSPIRISYS's Return on Equity (63.02%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Inspirisys Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: INSPIRISYS's short term assets (₹2.4B) do not cover its short term liabilities (₹2.5B).

Long Term Liabilities: INSPIRISYS's short term assets (₹2.4B) exceed its long term liabilities (₹700.2M).


Debt to Equity History and Analysis

Debt Level: INSPIRISYS's debt to equity ratio (585.4%) is considered high.

Reducing Debt: INSPIRISYS's debt to equity ratio has increased from 110.2% to 585.4% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: INSPIRISYS's debt is covered by short term assets (assets are 2.1x debt).


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: INSPIRISYS is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: INSPIRISYS is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

2.8yrs

Average management tenure


CEO

Malcolm Mehta (51yo)

2.75s

Tenure

Mr. Malcolm Farrokh Mehta has been Chief Executive Officer of Accel Frontline Limited since July 1, 2017. Mr. Mehta served as the Head of Japan Operations of Hexaware Technologies Limited since September 2 ...


Leadership Team

NamePositionTenureCompensationOwnership
Malcolm Mehta
Chairman of the Board & CEO2.75yrsno datano data
Murali Gopalakrishnan
Chief Financial Officer2.33yrs₹6.60mno data
S. Sundaramurthy
Company Secretary & Compliance Officer3.5yrs₹1.99mno data
Maqbool Hassan
COO and President of Practice & Deliveryno datano datano data
John Rekesh
CTO - Corporate Affairs4yrsno datano data
Vibhuti Pandey
Vice President of HR & Admin2.25yrsno datano data
Jayesh Ahluwalia
President of Salesno datano datano data
Milind Kalurkar
President of Overseas Salesno datano datano data
Satyen Parikh
President of Corporateno datano datano data
Jayaraj Kannan
Head of MSGno datano datano data

2.8yrs

Average Tenure

53yo

Average Age

Experienced Management: INSPIRISYS's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Malcolm Mehta
Chairman of the Board & CEO2.75yrsno datano data
Rajesh Muni
Independent Director2.92yrs₹640.00kno data
Ruchi Naithani
Non Executive Independent Director5.58yrs₹600.00kno data
Raj Khalid
Non-Executive Independent Director5.33yrs₹540.00kno data
Koji Iketani
Non Executive Non-Independent Director0.83yrno datano data
M. Jagan
Additional Non-Executive Independent Director0.17yrno datano data

3.2yrs

Average Tenure

57yo

Average Age

Experienced Board: INSPIRISYS's board of directors are considered experienced (3.2 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 been diluted in the past year, with total shares outstanding growing by 19.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: Inspirisys Solutions Limited
  • Ticker: INSPIRISYS
  • Exchange: NSEI
  • Founded: 1991
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹812.146m
  • Shares outstanding: 39.62m
  • Website: https://www.inspirisys.com

Location

  • Inspirisys Solutions Limited
  • Dowlath Towers
  • First Floor
  • Chennai
  • Tamil Nadu
  • 600010
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532774BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2006
INSPIRISYSNSEI (National Stock Exchange of India)YesEquity SharesININROct 2006

Biography

Inspirisys Solutions Limited operates as an information technology services and consulting company in India and internationally. The company provides endpoint, network, application, data, and mobile security services; and risk and compliance, malware defense, and consulting services. It also offers cloud solutions, including infrastructure as a service, platform as a service, application services, and management services; and Internet of Things (IoT) solutions, such as research and development (R&D) services, IoT system integration, outsourced support of IoT system development, custom IoT solution design and development, support of IoT applications/systems, deep digital transformation expertise, end to end services, and technology partnerships. In addition, the company provides infrastructure solutions comprising data center, network, workplace transformation, tools and services automation, managed services, staff augmentation services, and customer interface, as well as audit, consulting, and professional services. Further, it offers product engineering and development solutions, such as mobility solutions, custom application development, software re-engineering, R&D and prototyping, continuous integration and build automation, testing and test automation, and maintenance/enhancement post product support. Additionally, the company offers warranty management services, including onsite warranty support, return to bench, repairs and refurbishments, logistics, customized CRM software solution, extended warranty program, data recovery, and warehouse support services. It serves BFSI, telecom, government/PSU, manufacturing, and healthcare industries. The company was formerly known as Accel Frontline Limited and changed its name to Inspirisys Solutions Limited in September 2018. The company was founded in 1991 and is based in Chennai, India. Inspirisys Solutions Limited is a subsidiary of CAC Holdings Corporation. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 12:54
End of Day Share Price2020/04/01 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.