DRC Systems

Why is DRC Systems India Ltd falling/rising?

As of 10-Jun, DRC Systems India Ltd's stock price is at 14.15, down 1.74%, and has significantly underperformed the Sensex over various time frames. Despite strong management efficiency and growth indicators, the stock is in a bearish trend and has faced substantial declines year-to-date and over the past year.

As of 10-Jun, DRC Systems India Ltd's stock price is falling, currently at 14.15, reflecting a change of -0.25 or -1.74%. The stock has underperformed compared to the benchmark Sensex, with a decline of 5.10% over the past week and 6.29% over the past month, while the Sensex has only decreased by 0.49% and 4.33%, respectively. Year-to-date, the stock has fallen by 18.82%, significantly more than the Sensex's decline of 13.19%. Over the past year, DRC Systems has experienced a substantial drop of 25.92%, while the Sensex has only decreased by 10.21%.<BR><BR>Despite these declines, there are positive indicators such as high management efficiency, with a return on equity (ROE) of 21.27%, and the company being net-debt free. Additionally, the company has shown healthy long-term growth, with net sales increasing at an annual rate of 55.05% and operating profit growing at 66.30%. Recent financial results indicate that net sales for the latest six months have grown by 60.51%, and profit after tax has increased by 43.71%. However, the stock is currently trading lower than all its moving averages, indicating a bearish trend.<BR><BR>Investor participation has risen, with a delivery volume increase of 29.71% compared to the 5-day average, which could suggest some interest in the stock despite its falling price. Nonetheless, the overall performance and historical returns indicate a challenging environment for DRC Systems India Ltd, contributing to its current price decline.

What does DRC Systems do?

DRC Systems India Ltd is a micro-cap IT services and consulting company, incorporated in 2012, with net sales of 27 Cr and a net profit of 5 Cr as of March 2026. Key metrics include a P/E ratio of 10.00 and a market cap of INR 208 Cr.

Overview: <BR>DRC Systems India Ltd is an IT services, consulting, and business solutions organization operating in the Computers - Software & Consulting industry, categorized as a micro-cap company.<BR><BR>History: <BR>DRC Systems India Limited was incorporated on April 27, 2012, under the Companies Act, 1956. The latest quarterly results reported are for March 2026, showing net sales and profit figures.<BR><BR>Financial Snapshot: <BR>Net Sales: 27 Cr (Quarterly Results - Mar 2026) <BR>Net Profit: 5 Cr (Quarterly Results - Mar 2026) <BR>Market Cap: INR 208 Cr (Micro Cap)<BR><BR>Key Metrics: <BR>P/E: 10.00 <BR>Industry P/E: 20 <BR>Dividend Yield: 0.00% <BR>Debt Equity: -0.02 <BR>Return on Equity: 17.85% <BR>Price to Book: 1.84 <BR><BR>Contact Details: <BR>Details: No Company Details Available <BR>Registrar Address: Not available.

Which are the latest news on DRC Systems?

How big is DRC Systems?

As of 10th June, DRC Systems India Ltd has a market capitalization of 208.00 Cr, with recent net sales of 95.50 Cr and a net profit of 19.27 Cr.

As of 10th June, DRC Systems India Ltd has a market capitalization of 208.00 Cr and is classified as a Micro Cap company.<BR><BR>In the latest four quarters, the company reported Net Sales of 95.50 Cr and a Net Profit of 19.27 Cr.<BR><BR>The latest annual period for the balance sheet is March 2025, with Shareholder's Funds amounting to 64.59 Cr and Total Assets of 99.51 Cr.

Who are in the management team of DRC Systems?

The management team of DRC Systems includes Keyur Shah (Chairman), Hiten Barchha (Managing Director), Janmaya Pandya (CFO), and several Non-Executive Directors: Sanket Khemuka, Roopkishan Dave, Jigar Shah, and Dipti Chitale. They oversee the company's strategic direction and operations.

The management team of DRC Systems includes the following individuals:<BR><BR>1. **Keyur Shah** - Chairman & Independent Director<BR>2. **Hiten Barchha** - Executive Director, Managing Director, and Promoter<BR>3. **Janmaya Pandya** - Executive Director & Chief Financial Officer<BR>4. **Sanket Khemuka** - Non-Executive Director<BR>5. **Roopkishan Dave** - Non-Executive Director<BR>6. **Jigar Shah** - Non-Executive Director<BR>7. **Dipti Chitale** - Non-Executive Director<BR><BR>This team is responsible for guiding the company's strategic direction and overseeing its operations.

Are DRC Systems India Ltd latest results good or bad?

DRC Systems India Ltd's latest results show strong revenue growth with record net sales of ₹27.20 crores, up 60.66% year-on-year. However, net profit declined by 5.49% quarter-on-quarter, and operating margins contracted, indicating potential operational challenges and a cautious outlook for investors.

The latest results for DRC Systems India Ltd present a mixed picture. On one hand, the company achieved a record high in net sales for Q4 FY26, reaching ₹27.20 crores, which reflects a substantial year-on-year growth of 60.66%. This indicates strong revenue momentum and the ability to secure new business.<BR><BR>However, the consolidated net profit for the same quarter declined by 5.49% on a quarter-on-quarter basis, coming in at ₹5.16 crores, although it still showed a year-on-year increase of 17.01%. This sequential profit decline raises concerns about the sustainability of profit growth, especially in light of rising operational costs, particularly employee expenses, which surged significantly.<BR><BR>Additionally, the operating margin has contracted to 29.67%, down from 35.56% a year earlier, indicating margin compression that could affect future profitability. The company's stock has also underperformed over the past year, declining 22.76%, which is more than the broader market's decline.<BR><BR>In summary, while the revenue growth is impressive, the decline in profit and margin compression suggest operational challenges that investors should monitor closely. The results are therefore a mix of positive revenue growth but concerning profit trends, leading to a cautious outlook.

Should I buy, sell or hold DRC Systems India Ltd?

How has been the historical performance of DRC Systems?

DRC Systems has experienced significant growth over the past four years, with net sales increasing from 19.50 Cr in Mar'22 to 65.38 Cr in Mar'25, and profit after tax rising from 0.70 Cr to 14.95 Cr, reflecting strong financial performance across key metrics. Total assets also grew from 24.65 Cr to 99.51 Cr, indicating robust operational expansion.

Answer:<BR>The historical performance of DRC Systems shows significant growth in various financial metrics over the past four years.<BR><BR>Breakdown:<BR>DRC Systems has demonstrated a strong upward trend in net sales, increasing from 19.50 Cr in Mar'22 to 65.38 Cr in Mar'25. Total operating income followed a similar trajectory, rising from 19.50 Cr to 65.38 Cr during the same period. The company's total expenditure, excluding depreciation, also grew from 17.23 Cr in Mar'22 to 44.64 Cr in Mar'25, primarily driven by increases in employee costs and manufacturing expenses. Operating profit (PBDIT) saw a substantial rise from 2.60 Cr in Mar'22 to 21.08 Cr in Mar'25, reflecting an improved operating profit margin, which increased from 11.64% to 31.72%. Profit before tax rose from 1.21 Cr to 16.74 Cr, while profit after tax increased from 0.70 Cr to 14.95 Cr, indicating a healthy PAT margin of 23.07% in Mar'25. The company's total assets grew significantly from 24.65 Cr in Mar'22 to 99.51 Cr in Mar'25, while total liabilities increased from 24.65 Cr to 99.51 Cr, with no long-term borrowings reported in the last two years. Cash flow from operating activities improved from -1.00 Cr in Mar'22 to 32.00 Cr in Mar'25, although cash flow from investing activities remained negative, indicating ongoing investments in growth. Overall, DRC Systems has shown robust financial performance and growth across key metrics over the past four years.

When is the next results date for DRC Systems?

The next results date for DRC Systems is 11 August 2025.

The next results date for DRC Systems is scheduled for 11 August 2025.

Who are the top shareholders of the DRC Systems?

The top shareholders of DRC Systems include Yogeshkumar Popatbhai Sutariya with 10.11%, Pirimid Technologies Private Limited with 10%, and individual investors holding 39.13%. There are no mutual funds involved, and foreign institutional investors have a negligible stake.

The top shareholders of DRC Systems include Yogeshkumar Popatbhai Sutariya, who holds the highest promoter stake at 10.11%. Additionally, Pirimid Technologies Private Limited is the largest public shareholder, also holding 10%. Individual investors collectively account for 39.13% of the holdings, while there are two foreign institutional investors (FIIs) with a negligible stake of 0.0%. Notably, there are no mutual funds involved with the company.

Is DRC Systems overvalued or undervalued?

As of April 28, 2025, DRC Systems is considered undervalued with a PE Ratio of 15.91 and strong growth potential, significantly lower than peers like Tata Consultancy Services and Infosys, despite a year-to-date stock decline of -36.84% compared to the Sensex's 5.58% return.

As of 28 April 2025, DRC Systems has moved from a fair to a very attractive valuation grade, indicating a significant improvement in its perceived value. The company is currently considered undervalued, especially when compared to its peers. Key ratios include a PE Ratio of 15.91, an EV to EBITDA of 11.47, and a PEG Ratio of 0.56, which suggests strong growth potential relative to its price.<BR><BR>In comparison to its peers, DRC Systems stands out with a much lower PE Ratio than Tata Consultancy Services Ltd. at 25.23 and Infosys Ltd. at 24.32, both of which are in the attractive and fair categories, respectively. Additionally, DRC's EV to EBITDA ratio is more favorable than that of HCL Technologies Ltd. at 16.52. Despite a recent decline in stock performance compared to the Sensex, where DRC Systems has seen a YTD return of -36.84% versus the Sensex's 5.58%, the underlying financial metrics suggest that the company is well-positioned for future growth.

What is the technical trend for DRC Systems?

As of June 5, 2025, DRC Systems is in a bearish trend with moderate strength, indicated by bearish weekly MACD and moving averages, while recent price action shows a decline to 18.79 from a 52-week high of 35.10.

As of 5 June 2025, the technical trend for DRC Systems has changed from mildly bearish to bearish. The current stance is bearish with a moderate strength. Key indicators driving this assessment include the weekly MACD, which is bearish, and the daily moving averages, also bearish. The Bollinger Bands confirm a bearish trend on both weekly and monthly time frames. The KST shows a bearish signal on the weekly chart, while the monthly remains bullish, indicating mixed signals over longer periods. The Dow Theory and OBV both reflect mildly bearish conditions on the weekly and monthly charts. Overall, the bearish trend is supported by the recent price action, with the current price at 18.79, showing a decline from the 52-week high of 35.10.

What is the bonus history of the DRC Systems?

DRC Systems has announced a 2:1 bonus issue, with an ex-date and record date of February 27, 2024, meaning shareholders will receive one additional share for every share held.

DRC Systems has announced a bonus issue in a 2:1 ratio, with the ex-date set for February 27, 2024. This means that for every share held, shareholders will receive an additional share. The record date for this bonus issue is also February 27, 2024. This is the latest information regarding the company's bonus history. If you have any more questions about DRC Systems or need further details, feel free to ask!

Has DRC Systems declared dividend?

No Dividend History Available

Who are the peers of the DRC Systems?

Peers of DRC Systems include TCS, Infosys, HCL Technologies, Wipro, Tech Mahindra, Aion-Tech Soluti, Dev Information, Sofcom Systems, and Enfuse. DRC Systems shows excellent growth and management risk, with a 1-year return of -9.80%, better than Aion-Tech Soluti but lower than most peers.

Peers: The peers of DRC Systems are TCS, Infosys, HCL Technologies, Wipro, Tech Mahindra, Aion-Tech Soluti, Dev Information, Sofcom Systems, and Enfuse.<BR><BR>Quality Snapshot: Excellent management risk is observed at TCS, Infosys, and HCL Technologies, while Good management risk is found at Wipro, Tech Mahindra, DRC Systems, and Enfuse. Average management risk is present at Aion-Tech Soluti, Dev Information, and Sofcom Systems. In terms of Growth, Excellent growth is noted at DRC Systems, while Good growth is seen at Infosys, Dev Information, and Enfuse. Below Average growth is reported at Aion-Tech Soluti, Wipro, and Tech Mahindra, and Average growth is found at HCL Technologies and Sofcom Systems. Excellent capital structure is observed at TCS, Infosys, HCL Technologies, Wipro, Tech Mahindra, DRC Systems, and Sofcom Systems, while Average capital structure is noted at Dev Information and Good capital structure is seen at Aion-Tech Soluti.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Sofcom Systems at 152.20%, while Aion-Tech Soluti has the lowest at -40.21%. DRC Systems' 1-year return is -9.80%, which is higher than Aion-Tech Soluti but lower than most peers. Additionally, the six-month return is negative for Aion-Tech Soluti, Dev Information, DRC Systems, and Wipro.