BSE:531370

Stock Analysis Report

Executive Summary

Sparc Systems Limited provides software and hardware electronic security solutions in India.


Snowflake Analysis

Adequate balance sheet with acceptable track record.

Share Price & News

How has Sparc Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 531370 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.3%

531370

-1.0%

IN Electronic

0.2%

IN Market


1 Year Return

-48.8%

531370

17.3%

IN Electronic

7.2%

IN Market

Return vs Industry: 531370 underperformed the Indian Electronic industry which returned 19% over the past year.

Return vs Market: 531370 underperformed the Indian Market which returned 7% over the past year.


Shareholder returns

531370IndustryMarket
7 Day-0.3%-1.0%0.2%
30 Day-14.1%0.8%2.1%
90 Day-18.7%-1.6%5.7%
1 Year-48.8%-48.8%18.3%17.3%9.2%7.2%
3 Year-35.4%-35.4%79.6%74.3%33.1%26.2%
5 Year-53.7%-53.7%67.2%60.2%35.6%23.5%

Price Volatility Vs. Market

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


Simply Wall St News

1 year ago | Simply Wall St

May Top Cheap Stocks To Buy

1 year ago | Simply Wall St

May Top Cheap Stocks To Buy

1 year ago | Simply Wall St

May Top Cheap Stocks To Buy

Valuation

Is Sparc Systems undervalued compared to its fair value and its price relative to the market?

16.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 531370's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 531370's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 531370 is poor value based on its PE Ratio (17x) compared to the Electronic industry average (11.2x).

PE vs Market: 531370 is poor value based on its PE Ratio (17x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 531370's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 531370 is good value based on its PB Ratio (0.4x) compared to the IN Electronic industry average (0.7x).


Next Steps

Future Growth

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

22.7%

Forecasted Tech 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 Sparc Systems 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 Sparc Systems performed over the past 5 years?

60.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 531370 has high quality earnings.

Growing Profit Margin: 531370 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 531370 has become profitable over the past 5 years, growing earnings by 60.6% per year.

Accelerating Growth: 531370 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 531370 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (15.8%).


Return on Equity

High ROE: 531370's Return on Equity (2.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sparc Systems's financial position?


Financial Position Analysis

Short Term Liabilities: 531370's short term assets (₹32.6M) exceed its short term liabilities (₹920.0K).

Long Term Liabilities: 531370 has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: 531370's debt to equity ratio (0.2%) is considered satisfactory.

Reducing Debt: 531370's debt to equity ratio has reduced from 2.6% to 0.2% over the past 5 years.

Debt Coverage: 531370's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 531370's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 531370 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 531370's debt is covered by short term assets (assets are 465.5x debt).


Next Steps

Dividend

What is Sparc Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.3%industryaverage0.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 531370's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 531370'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 531370's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 531370's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 531370's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Jude D'Souza (60yo)

14.8yrs

Tenure

₹180,000

Compensation

Mr. Jude Terrence D'Souza has been Managing Director of Sparc Systems Ltd. since March 2005. Mr. D'Souza serves as the Chairman of the Board at Sparc Systems Ltd. and has been its Director since September  ...


CEO Compensation Analysis

Compensation vs Market: Jude's total compensation ($USD2.54K) is below average for companies of similar size in the Indian market ($USD50.75K).

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


Management Age and Tenure

1.0yrs

Average Tenure

Experienced Management: 531370's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

17.3yrs

Average Tenure

49yo

Average Age

Experienced Board: 531370's board of directors are seasoned and experienced ( 17.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jude D'Souza (60yo)

    Chairman of the Board & MD

    • Tenure: 14.8yrs
    • Compensation: ₹180.00k
  • Punit Neb (52yo)

    CFO & Whole-Time Director

    • Tenure: 28.5yrs
  • Deepika Singh

    Company Secretary & Compliance Officer

    • Tenure: 1yrs

Board Members

  • Jude D'Souza (60yo)

    Chairman of the Board & MD

    • Tenure: 14.8yrs
    • Compensation: ₹180.00k
  • Punit Neb (52yo)

    CFO & Whole-Time Director

    • Tenure: 28.5yrs
  • Santosh Shetty (46yo)

    Non-Executive Independent Director

    • Tenure: 17.3yrs
  • Kajal Jain (42yo)

    Independent Director

    • Tenure: 0.8yrs

Company Information

Sparc Systems Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sparc Systems Limited
  • Ticker: 531370
  • Exchange: BSE
  • Founded: 1989
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: ₹14.276m
  • Shares outstanding: 4.89m
  • Website: https://www.sparcsys.com

Location

  • Sparc Systems Limited
  • Lovely
  • #16, Ground Floor
  • Navi Mumbai
  • Maharashtra
  • 400708
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
531370BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2001

Biography

Sparc Systems Limited provides software and hardware electronic security solutions in India. It offers GPS vehicle tracking systems, video conference systems, mobile ATMs, fire and intrusion detection systems, access control systems, home security systems, and building management systems, as well as SMS solutions, including kiosk monitoring, remote activation, vehicle control systems, etc. The company also provides custom solutions comprising self-service kiosks, handheld terminals, and embedded systems. Sparc Systems Limited was founded in 1989 and is based in Navi Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/20 12:37
End of Day Share Price2020/01/15 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.