Why is DC Infotech & Communication Ltd ?
1
High Management Efficiency with a high ROCE of 27.63%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.94 times
3
Healthy long term growth as Operating profit has grown by an annual rate 42.71%
4
The company has declared Positive results for the last 3 consecutive quarters
- PAT(Latest six months) At Rs 12.27 cr has Grown at 58.12%
- NET SALES(Q) Highest at Rs 239.42 cr
- PBDIT(Q) Highest at Rs 10.31 cr.
5
With ROCE of 35, it has a Fair valuation with a 4.8 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -8.18%, its profits have risen by 47% ; the PEG ratio of the company is 1
6
Majority shareholders : Promoters
How much should you hold?
- Overall Portfolio exposure to DC Infotech should be less than 10%
- Overall Portfolio exposure to IT - Hardware should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is DC Infotech for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
DC Infotech
-8.17%
-0.16
50.21%
Sensex
-8.43%
-0.64
13.07%
Quality key factors
Factor
Value
Sales Growth (5y)
27.00%
EBIT Growth (5y)
42.71%
EBIT to Interest (avg)
4.02
Debt to EBITDA (avg)
2.17
Net Debt to Equity (avg)
0.38
Sales to Capital Employed (avg)
5.22
Tax Ratio
23.71%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
1.28%
ROCE (avg)
23.42%
ROE (avg)
24.14%
Valuation Key Factors 
Factor
Value
P/E Ratio
22
Industry P/E
32
Price to Book Value
6.22
EV to EBIT
13.68
EV to EBITDA
13.41
EV to Capital Employed
4.79
EV to Sales
0.65
PEG Ratio
1.00
Dividend Yield
NA
ROCE (Latest)
34.98%
ROE (Latest)
29.53%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
17What is working for the Company
PAT(Latest six months)
At Rs 12.27 cr has Grown at 58.12%
NET SALES(Q)
Highest at Rs 239.42 cr
PBDIT(Q)
Highest at Rs 10.31 cr.
-10What is not working for the Company
OPERATING PROFIT TO INTEREST (Q)
Lowest at 3.22 times
INTEREST(Q)
Highest at Rs 3.20 cr
Loading Valuation Snapshot...
Here's what is working for DC Infotech
Profit After Tax (PAT) - Latest six months
At Rs 12.27 cr has Grown at 58.12%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 239.42 cr has Grown at 42.9% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 167.50 CrMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Net Sales - Quarterly
Highest at Rs 239.42 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 10.31 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Here's what is not working for DC Infotech
Interest - Quarterly
At Rs 3.20 cr has Grown at 42.22%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit to Interest - Quarterly
Lowest at 3.22 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest - Quarterly
Highest at Rs 3.20 cr
in the last five quarters and Increased by 42.22 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)






