NSEI:SASKEN

Stock Analysis Report

Sasken Technologies

Executive Summary

Sasken Technologies Limited provides product engineering and digital transformation services worldwide.

Snowflake

Fundamentals

Flawless balance sheet and fair value.

Share Price & News

How has Sasken Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.6%

SASKEN

-0.7%

IN Software

2.4%

IN Market


1 Year Return

-8.5%

SASKEN

-22.3%

IN Software

8.0%

IN Market

Return vs Industry: SASKEN exceeded the Indian Software industry which returned -22.3% over the past year.

Return vs Market: SASKEN underperformed the Indian Market which returned 8% over the past year.


Shareholder returns

SASKENIndustryMarket
7 Day-2.6%-0.7%2.4%
30 Day-0.8%-2.8%2.5%
90 Day10.5%-5.6%3.6%
1 Year-6.7%-8.5%-18.7%-22.3%10.3%8.0%
3 Year42.6%36.1%-8.3%-15.9%22.3%16.0%
5 Year193.7%149.7%10.3%-5.8%42.8%29.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sasken Technologies undervalued compared to its fair value and its price relative to the market?

10.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SASKEN (₹586.6) is trading above our estimate of fair value (₹239.7)

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


Price To Earnings Ratio

PE vs Industry: SASKEN is good value based on its PE Ratio (10.9x) compared to the Software industry average (11.6x).

PE vs Market: SASKEN is good value based on its PE Ratio (10.9x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: SASKEN is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: SASKEN is overvalued based on its PB Ratio (1.4x) compared to the IN Software industry average (1x).


Next Steps

Future Growth

How is Sasken Technologies forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SASKEN's forecast earnings growth (13% per year) is above the savings rate (7.6%).

Earnings vs Market: SASKEN's earnings (13% per year) are forecast to grow slower than the Indian market (18.4% per year).

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

Revenue vs Market: SASKEN's revenue (10.8% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: SASKEN's revenue (10.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SASKEN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sasken Technologies performed over the past 5 years?

-8.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SASKEN's earnings have declined by -8.3% per year over the past 5 years.

Accelerating Growth: SASKEN's earnings growth over the past year (0.2%) exceeds its 5-year average (-8.3% per year).

Earnings vs Industry: SASKEN earnings growth over the past year (0.2%) underperformed the Software industry 5.3%.


Return on Equity

High ROE: SASKEN's Return on Equity (12.6%) is considered low.


Return on Assets

ROA vs Industry: SASKEN has a higher Return on Assets than the Software industry average last year.


Return on Capital Employed

ROCE Improving: SASKEN has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Sasken Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: SASKEN's short term assets (₹3.2B) exceeds its short term liabilities (₹1.1B)

Long Term Liabilities: SASKEN's short term assets (3.2B) exceeds its long term liabilities (142.3M)


Debt to Equity History and Analysis

Debt Level: SASKEN is debt free.

Reducing Debt: SASKEN had no debt 5 years ago.

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

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


Balance Sheet

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

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


Next Steps

Dividend

What is Sasken Technologies's current dividend yield, its reliability and sustainability?

2.13%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%0.6%markettop25%2.4%industryaverage2.0%forecastin3Years2.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SASKEN's dividend (2.13%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: SASKEN's dividend (2.13%) is low compared to the top 25% of dividend payers in the Indian market (2.41%).

Stable Dividend: SASKEN's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14%), SASKEN'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

What is the CEO of Sasken Technologies's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Rajiv Mody (61yo)

0yrs

Tenure

₹17,000,000

Compensation

Mr. Rajiv Chandrakant Mody co-founded Sasken Technologies Limited (formerly, Sasken Communication Technologies Ltd.) in 1989 and serves as its Chairman, Chief Executive Officer and Managing Director. Mr. M ...


CEO Compensation Analysis

Compensation vs. Market: Rajiv's total compensation ($USD240.06K) is about average for companies of similar size in the Indian market ($USD33.85K).

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


Management Age and Tenure

3.1yrs

Average Tenure

50.5yo

Average Age

Experienced Management: SASKEN's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

14.3yrs

Average Tenure

59.5yo

Average Age

Experienced Board: SASKEN's board of directors are seasoned and experienced ( 14.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹6,573,04106 Dec 18
Sasken Employees Welfare Trust
EntityCompany
Shares9,530
Max Price₹689.72
Buy₹6,857,72303 Dec 18
Sasken Employees Welfare Trust
EntityCompany
Shares9,707
Max Price₹706.60
Buy₹6,181,83928 Nov 18
Sasken Employees Welfare Trust
EntityCompany
Shares8,967
Max Price₹689.40
Buy₹1,023,19023 Nov 18
Sasken Employees Welfare Trust
EntityCompany
Shares1,500
Max Price₹682.13
Buy₹7,181,87119 Nov 18
Sasken Employees Welfare Trust
EntityCompany
Shares10,000
Max Price₹718.19
Buy₹15,601,51315 Nov 18
Sasken Employees Welfare Trust
EntityCompany
Shares21,992
Max Price₹714.13
Buy₹189,93607 Nov 18
Sasken Employees Welfare Trust
EntityCompany
Shares288
Max Price₹659.50
Buy₹697,88302 Nov 18
Sasken Employees Welfare Trust
EntityCompany
Shares1,060
Max Price₹658.38
Buy₹1,546,75230 Oct 18
Sasken Employees Welfare Trust
EntityCompany
Shares2,382
Max Price₹649.35

Ownership Breakdown


Management Team

  • Hari Haran (59yo)

    President of Global Sales

    • Tenure: 3.1yrs
  • Neeta Revankar (53yo)

    CFO & Whole-Time Director

    • Tenure: 9.5yrs
    • Compensation: ₹13.00m
  • Rajiv Mody (61yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: ₹17.00m
  • Jyotindra Mody (90yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: ₹20.00k
  • Ashwin Ramachandra (48yo)

    Head of Engineering Research & Development Services and VP

    • Tenure: 2.9yrs
  • Srinivas Prasad

    Associate VP

    • Tenure: 7.2yrs
    • Compensation: ₹3.34m
  • Arif Khan (43yo)

    Senior VP & Head of Staffing

    • Tenure: 1.8yrs
  • - Priyaranjan (42yo)

    VP & Head of Business Operations

    • Tenure: 0yrs
  • Krishna Kumar (47yo)

    Head of Global Delivery & VP

    • Tenure: 3.1yrs
  • P. Poonacha

    Vice President of Technology

    • Tenure: 0yrs

Board Members

  • Bharat Patel (75yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: ₹1.42m
  • Sanjay Shah (56yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: ₹900.00k
  • J. Ramachandran (62yo)

    Independent Director

    • Tenure: 19.3yrs
    • Compensation: ₹2.66m
  • Gangadharan Venkatesh (58yo)

    Non-Executive Director

    • Tenure: 14.8yrs
    • Compensation: ₹1.14m
  • Neeta Revankar (53yo)

    CFO & Whole-Time Director

    • Tenure: 9.5yrs
    • Compensation: ₹13.00m
  • Rajiv Mody (61yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: ₹17.00m
  • Pranabh Mody (56yo)

    Non-Executive Director

    • Tenure: 20.3yrs
    • Compensation: ₹140.00k
  • Sunirmal Talukdar (68yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: ₹1.98m

Company Information

Sasken Technologies Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sasken Technologies Limited
  • Ticker: SASKEN
  • Exchange: NSEI
  • Founded: 1989
  • Industry: Application Software
  • Sector: Software
  • Market Cap: ₹9.979b
  • Shares outstanding: 17.11m
  • Website: https://www.sasken.com

Number of Employees


Location

  • Sasken Technologies Limited
  • 139/25, Ring Road
  • Domlur
  • Bengaluru
  • Karnataka
  • 560071
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532663BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2005
SASKENNSEI (National Stock Exchange of India)YesEquity SharesININRSep 2005

Biography

Sasken Technologies Limited provides product engineering and digital transformation services worldwide. Its services include test automation, consultancy, test specifications, product testing, and applicat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:47
End of Day Share Price2019/10/23 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.