NSEI:NUCLEUS

Stock Analysis Report

Nucleus Software Exports

Executive Summary

Nucleus Software Exports Limited engages in software product development and marketing, and providing support services for corporate business entities in the banking and financial services sector in India, the Far East, South East Asia, Europe, the Middle East, Africa, and Australia.


Snowflake Analysis

Flawless balance sheet 6 star dividend payer.


Similar Companies

Share Price & News

How has Nucleus Software Exports's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-5.3%

NUCLEUS

-3.8%

IN Software

-3.0%

IN Market


1 Year Return

-43.5%

NUCLEUS

-51.4%

IN Software

-29.2%

IN Market

Return vs Industry: NUCLEUS exceeded the Indian Software industry which returned -51.4% over the past year.

Return vs Market: NUCLEUS underperformed the Indian Market which returned -29.2% over the past year.


Shareholder returns

NUCLEUSIndustryMarket
7 Day-5.3%-3.8%-3.0%
30 Day-36.0%-38.6%-26.9%
90 Day-32.3%-38.1%-28.5%
1 Year-39.0%-43.5%-50.5%-51.4%-27.7%-29.2%
3 Year-12.7%-22.0%-48.7%-53.2%-15.2%-19.9%
5 Year22.9%4.7%-39.4%-48.3%-3.1%-8.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Nucleus Software Exports undervalued compared to its fair value and its price relative to the market?

13.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NUCLEUS (₹191.95) is trading below our estimate of fair value (₹222.54)

Significantly Below Fair Value: NUCLEUS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

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

PE vs Market: NUCLEUS is good value based on its PE Ratio (7x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: NUCLEUS is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: NUCLEUS is overvalued based on its PB Ratio (1.1x) compared to the IN Software industry average (0.6x).


Next Steps

Future Growth

How is Nucleus Software Exports forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NUCLEUS's forecast earnings growth (11.1% per year) is above the savings rate (6.5%).

Earnings vs Market: NUCLEUS's earnings (11.1% per year) are forecast to grow slower than the Indian market (19.8% per year).

High Growth Earnings: NUCLEUS's earnings are forecast to grow, but not significantly.

Revenue vs Market: NUCLEUS's revenue (9.4% per year) is forecast to grow faster than the Indian market (9.1% per year).

High Growth Revenue: NUCLEUS's revenue (9.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NUCLEUS's Return on Equity is forecast to be low in 3 years time (15.7%).


Next Steps

Past Performance

How has Nucleus Software Exports performed over the past 5 years?

9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NUCLEUS has high quality earnings.

Growing Profit Margin: NUCLEUS's current net profit margins (15.3%) are lower than last year (16%).


Past Earnings Growth Analysis

Earnings Trend: NUCLEUS's earnings have grown by 9.4% per year over the past 5 years.

Accelerating Growth: NUCLEUS's earnings growth over the past year (4.3%) is below its 5-year average (9.4% per year).

Earnings vs Industry: NUCLEUS earnings growth over the past year (4.3%) exceeded the Software industry -4%.


Return on Equity

High ROE: NUCLEUS's Return on Equity (15.1%) is considered low.


Next Steps

Financial Health

How is Nucleus Software Exports's financial position?


Financial Position Analysis

Short Term Liabilities: NUCLEUS's short term assets (₹4.0B) exceed its short term liabilities (₹1.8B).

Long Term Liabilities: NUCLEUS's short term assets (₹4.0B) exceed its long term liabilities (₹151.8M).


Debt to Equity History and Analysis

Debt Level: NUCLEUS is debt free.

Reducing Debt: NUCLEUS has no debt compared to 5 years ago when its debt to equity ratio was 0%.

Debt Coverage: NUCLEUS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NUCLEUS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: NUCLEUS's debt is covered by short term assets (assets are 2.7937798813416E+17x debt).


Next Steps

Dividend

What is Nucleus Software Exports's current dividend yield, its reliability and sustainability?

11.03%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NUCLEUS's dividend (11.03%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: NUCLEUS's dividend (11.03%) is in the top 25% of dividend payers in the Indian market (4.18%)


Stability and Growth of Payments

Stable Dividend: NUCLEUS's dividends per share have been stable in the past 10 years.

Growing Dividend: NUCLEUS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.5%), NUCLEUS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NUCLEUS's dividends in 3 years are forecast to be well covered by earnings (29.2% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

RP Singh (58yo)

1.92s

Tenure

₹26,772,126

Compensation

Mr. Ravi Pratap Singh, also known as RP, B.A (Hons), PG Diploma, serves as the President and Head of Global Product Management for Nucleus Software Exports Limited. Mr. Singh served as the President of Del ...


CEO Compensation Analysis

Compensation vs Market: RP's total compensation ($USD355.20K) is above average for companies of similar size in the Indian market ($USD48.50K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ravi Singh
CEO, President of Products & Executive Whole -Time Director1.92yrs₹26.77m0.52% 28.4m
Vishnu Dusad
Co-Founderno data₹6.59m16.08% 873.7m
Ashish Nanda
CFO and Global Head of Finance & Accounts4.5yrs₹13.62mno data
Poonam Bhasin
Assistant VP of Secretarialno data₹3.96m0.000030% 1.6k
Swati Ahuja
Head of Investor Relationsno datano datano data
Prakash Pai
Chief Evangelist Officer0.33yr₹6.13mno data
Anurag Bhatia
Senior Vice Presidentno data₹3.68mno data
Parag Bhise
Executive Vice Presidentno data₹3.26mno data
Anurag Mantri
Senior Vice Presidentno datano datano data
Pankaj Bhatt
Chief Transformation Officerno datano datano data

3.2yrs

Average Tenure

55yo

Average Age

Experienced Management: NUCLEUS's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ravi Singh
CEO, President of Products & Executive Whole -Time Director1.92yrs₹26.77m0.52% 28.4m
Vishnu Dusad
Co-Founderno data₹6.59m16.08% 873.7m
Prithvi Haldea
Independent Non-Executive Director18.75yrs₹2.30mno data
Trilochan Sastry
Independent Non-Executive Director6.92yrs₹2.14mno data
Ritika Dusad
Non-Executive Director3.67yrs₹1.50m3.44% 187.1m
Elaine Mathias
Independent Non-Executive Director5.5yrs₹2.22mno data
S. Acharya
Independent Chairman2.33yrs₹2.14mno data

5.6yrs

Average Tenure

62yo

Average Age

Experienced Board: NUCLEUS's board of directors are considered experienced (5.6 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

Nucleus Software Exports Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nucleus Software Exports Limited
  • Ticker: NUCLEUS
  • Exchange: NSEI
  • Founded: 1986
  • Industry: Application Software
  • Sector: Software
  • Market Cap: ₹5.434b
  • Shares outstanding: 29.04m
  • Website: https://www.nucleussoftware.com

Number of Employees


Location

  • Nucleus Software Exports Limited
  • A-39, Sector 62
  • Noida
  • Uttar Pradesh
  • 201307
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
531209BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 2001
NUCLEUSNSEI (National Stock Exchange of India)YesEquity SharesININRNov 2001

Biography

Nucleus Software Exports Limited engages in software product development and marketing, and providing support services for corporate business entities in the banking and financial services sector in India, the Far East, South East Asia, Europe, the Middle East, Africa, and Australia. Its products include FinnOne Neo, a lending solution designed to support retail, corporate, and Islamic sectors comprising customer acquisition system (CAS), a loan origination software, which controls and automates the process of loans and credit card applications; loan management system (LMS), a bank loan management solution; Web based and workflow driven solution that allows financial institutions to manage, monitor, and control the delinquent loan accounts; Enterprise Content Management that automates the document management processes and enables financial institutions to transition from paper-based to digitized operations; finance against securities(FAS) that establishes credit lines to individuals and corporate against the pledging of financial securities; Lending Analytics, a solution enabling informed decision making through data visualization and business insight generation; lending mobility suite for banks and financial institutions; and Islamic financing that offers CAS and LMS modules as per Islamic/Shariah rules. The company also offers FinnAxia, an integrated global transaction banking solution comprising global receivables, global payments, global liquidity management, financial supply chain management, E-trade finance, and business Internet banking. In addition, it provides application, professional, and infrastructure management services; and PaySe payment solutions. Nucleus Software Exports Limited was founded in 1986 and is headquartered in Noida, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 13:14
End of Day Share Price2020/03/27 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.