Fourth Gen.

Is Fourth Gen. overvalued or undervalued?

As of November 12, 2024, Fourth Gen. is rated as "risky" due to its negative financial ratios, including a PE ratio of -2.69 and an EV to EBIT of -3.06, indicating overvaluation and financial distress compared to peers like Firstsour.Solu. and eClerx Services, despite a strong 108.4% return over the past three years, which underperforms the Sensex's 49.15% return.

As of 12 November 2024, Fourth Gen. has moved from a grade of "does not qualify" to "risky." The company is currently overvalued based on its financial ratios and peer comparisons. Notably, Fourth Gen. has a PE ratio of -2.69, an EV to EBIT of -3.06, and a PEG ratio of 0.00, indicating significant financial distress and lack of profitability.<BR><BR>In comparison to its peers, Fourth Gen. stands out negatively against Firstsour.Solu., which has an attractive PE ratio of 44.82, and eClerx Services with a fair PE of 32.59. The stark contrast in valuation metrics highlights Fourth Gen.'s precarious position within the software products industry. Additionally, while Fourth Gen. has shown a strong return of 108.4% over the past three years, it still lags behind the Sensex's 49.15% return in the same period, reinforcing the notion that the stock may not be a sound investment at its current valuation.

What is the technical trend for Fourth Gen.?

As of May 27, 2025, Fourth Gen. shows a mildly bullish trend supported by bullish MACD and moving averages, despite mixed signals from the RSI and KST.

As of 27 May 2025, the technical trend for Fourth Gen. has changed from bullish to mildly bullish. The weekly MACD remains bullish, supporting a positive short-term outlook, while the monthly MACD is also bullish, indicating sustained strength over a longer period. The weekly RSI is bullish, but the monthly RSI is bearish, suggesting some divergence in momentum. Bollinger Bands show a mildly bullish stance on both weekly and monthly time frames. Daily moving averages are bullish, reinforcing the positive trend. However, the KST shows a mildly bearish signal on the weekly chart, which could indicate potential weakness. Dow Theory and OBV indicate no clear trend on both weekly and monthly charts. Overall, the current stance is mildly bullish, driven primarily by the bullish MACD and moving averages, despite some mixed signals from the RSI and KST.

Who are in the management team of Fourth Gen.?

As of March 2019, the management team of Fourth Gen. includes T Srivenkata Ramana (Executive Director & CFO), C N Somasekhar Reddy (Managing Director), and four independent directors: K Santosh Reddy, Suneetha Indukuri, Srinivas Nekkante, along with Kavya Girish Chandwani as Company Secretary. They oversee the company's operations and strategic direction.

As of March 2019, the management team of Fourth Gen. includes the following individuals:<BR><BR>1. T Srivenkata Ramana - Executive Director & CFO<BR>2. K Santosh Reddy - Independent Director<BR>3. C N Somasekhar Reddy - Managing Director<BR>4. Suneetha Indukuri - Independent Director<BR>5. Kavya Girish Chandwani - Company Secretary<BR>6. Srinivas Nekkante - Independent Director<BR><BR>This team is responsible for overseeing the company's operations and strategic direction.

What does Fourth Gen. do?

Fourth Generation Information Systems Ltd is a software development company focused on providing solutions for the U.S. healthcare industry and medical transcription services. As of June 2023, it operates at a market cap of INR 3 Cr with no net profit reported.

Overview: <BR>Fourth Generation Information Systems Ltd is a software development company that provides software solutions for the United States healthcare industry and engages in medical transcription activities, operating within the Micro Cap category in the Software Products industry.<BR><BR>History: <BR>The company was incorporated as a private limited company on August 21, 1998, and converted into a public limited company on March 10, 2000. The latest quarterly results reported are for June 2023, showing no net profit.<BR><BR>Financial Snapshot: <BR>Most recent Net Sales: N/A <BR>Most recent Net Profit: 0 Cr (Quarterly Results - Jun 2023) <BR>Market-cap value: INR 3 Cr (Micro Cap)<BR><BR>Key Metrics: <BR>P/E: N/A <BR>Industry P/E: 19 <BR>Dividend Yield: 0.00% <BR>Debt-Equity: -0.37 <BR>Return on Equity: 7.00% <BR>Price to Book: -2.82<BR><BR>Contact Details: <BR>Address: Flat 301 Saai Priya Apartment, HNo 6-3-663/7/6/301 Somajiguda Hyderabad Telangana : 500082 <BR>Tel: 044-23376096 <BR>Email: info@fgisindia.com <BR>Website: http://www.fgisindia.com

Who are the top shareholders of the Fourth Gen.?

The top shareholder of Fourth Gen. is Chittoor Nallappa Reddy Sunitha Reddy, with a 13.46% stake. Individual investors own 62.3% of the shares, while the highest public shareholder is Jhansi Sanivarapu at 4.23%, and promoter holdings are largely pledged at 70.68%.

The top shareholders of Fourth Gen. include Chittoor Nallappa Reddy Sunitha Reddy, who holds the highest stake at 13.46%. The majority of the company's shares are held by non-institutional investors, with individual investors collectively owning 62.3% of the shares. The highest public shareholder is Jhansi Sanivarapu, holding 4.23%. Additionally, the promoter holdings are significantly pledged, at 70.6793%. There are currently no mutual funds or foreign institutional investors holding shares in the company.

When is the next results date for Fourth Gen.?

The next results date for Fourth Gen. is 13 November 2025.

The next results date for Fourth Gen. is scheduled for 13 November 2025.

How has been the historical performance of Fourth Gen.?

Fourth Gen. has experienced declining financial health, with negative shareholder equity increasing from Rs -0.01 crore in March 2020 to Rs -1.39 crore in March 2025, alongside rising liabilities and negative cash flow from operations. The company's reliance on debt has grown, with long-term borrowings rising to Rs 3.88 crore by March 2025.

Answer:<BR>The historical performance of Fourth Gen. shows a consistent trend of negative shareholder equity and increasing liabilities over the years.<BR><BR>Breakdown:<BR>Fourth Gen. has maintained a constant share capital of Rs 3.55 crore from March 2020 to March 2025. However, total reserves have become increasingly negative, reaching Rs -4.94 crore in March 2025, up from Rs -3.56 crore in March 2020. Shareholder's funds have also deteriorated, moving from Rs -0.01 crore in March 2020 to Rs -1.39 crore in March 2025. Long-term borrowings have increased from Rs 0 crore in March 2020 to Rs 3.88 crore in March 2025, indicating a growing reliance on debt. Total liabilities rose significantly from Rs 1.09 crore in March 2020 to Rs 4.59 crore in March 2025. The company's total assets have also increased, from Rs 1.09 crore in March 2020 to Rs 4.59 crore in March 2025, but the net current assets have fluctuated, showing a negative balance of Rs -0.56 crore in March 2025. Cash flow from operating activities has been negative, with a cash flow of Rs -2.00 crore in March 2024, while financing activities contributed positively with Rs 2.00 crore in the same period. Overall, Fourth Gen. has faced challenges in profitability and asset management, reflected in its negative book value per share, which dropped to Rs -3.91 in March 2025 from Rs -0.03 in March 2020.

Should I buy, sell or hold Fourth Generation Information Systems Ltd?

Why is Fourth Generation Information Systems Ltd falling/rising?

As of 08-Feb, the stock price of Fourth Generation Information Systems Ltd is Rs. 9.62, unchanged from the previous day. The stock has stagnated despite a broader market increase, facing challenges such as negative fundamentals, high debt, and a significant portion of pledged shares, making it an unfavorable investment.

As of 08-Feb, the stock price of Fourth Generation Information Systems Ltd is currently at Rs. 9.62, showing no change from the previous day. Despite hitting a new 52-week high today, the stock has underperformed its sector by 1.11%. Over the past week, month, and year-to-date, the stock has not shown any price movement, remaining at 0.00%. This stagnation occurs in the context of a broader market where the Sensex has increased by 1.59% over the past week, but the stock has not benefited from this upward trend.<BR><BR>The stock's performance is further complicated by several negative factors. The company has a negative book value and weak long-term fundamental strength, with poor growth in net sales and operating profit over the last five years. Additionally, the company carries a high debt load, indicated by a debt-to-equity ratio of 0 times, which raises concerns about its financial stability. The stock is also considered risky due to a negative EBITDA, and while it has generated no returns over the past year, its profits have declined by 0%.<BR><BR>Moreover, a significant portion of promoter shares, 74.24%, are pledged, which can exert additional downward pressure on the stock price, especially in a falling market. This proportion has increased by 1.21% over the last quarter, indicating growing concerns among investors regarding the company's financial health.<BR><BR>Overall, the combination of stagnant stock performance, weak fundamentals, high debt, and increased pledged shares contributes to the perception that Fourth Generation Information Systems Ltd is not a favorable investment at this time, leading to its current price stability without any upward momentum.

Which are the latest news on Fourth Gen.?