Why is DigiSpice Technologies Ltd ?
1
Poor Management Efficiency with a low ROE of 2.50%
- The company has been able to generate a Return on Equity (avg) of 2.50% signifying low profitability per unit of shareholders funds
2
Company has a low Debt to Equity ratio (avg) at 0 times
3
Poor long term growth as Net Sales has grown by an annual rate of -2.40% over the last 5 years
4
With a growth in Operating Profit of 488.79%, the company declared Very Positive results in Sep 25
- The company has declared positive results for the last 2 consecutive quarters
- PBT LESS OI(Q) At Rs 4.57 cr has Grown at 191.22%
- NET SALES(Q) Highest at Rs 124.58 cr
- PBDIT(Q) Highest at Rs 6.91 cr.
5
With ROE of 7.7, it has a Fair valuation with a 2.6 Price to Book Value
- 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 -8.82%, its profits have risen by 77.2% ; the PEG ratio of the company is 0.4
6
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
How much should you hold?
- Overall Portfolio exposure to DigiSpice Tech. should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is DigiSpice Tech. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
DigiSpice Tech.
-8.82%
-0.15
60.06%
Sensex
4.83%
0.41
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
-2.40%
EBIT Growth (5y)
21.09%
EBIT to Interest (avg)
-8.28
Debt to EBITDA (avg)
2.20
Net Debt to Equity (avg)
-1.35
Sales to Capital Employed (avg)
2.50
Tax Ratio
100.00%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.06%
ROCE (avg)
-21.99%
ROE (avg)
2.50%
Valuation Key Factors 
Factor
Value
P/E Ratio
33
Industry P/E
29
Price to Book Value
2.56
EV to EBIT
51.91
EV to EBITDA
22.22
EV to Capital Employed
-3.48
EV to Sales
0.58
PEG Ratio
0.44
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
7.68%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
28What is working for the Company
PBT LESS OI(Q)
At Rs 4.57 cr has Grown at 191.22%
NET SALES(Q)
Highest at Rs 124.58 cr
PBDIT(Q)
Highest at Rs 6.91 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 5.55%
PAT(Q)
Highest at Rs 7.13 cr.
EPS(Q)
Highest at Rs 0.34
-2What is not working for the Company
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 318.98 cr
NON-OPERATING INCOME(Q)
is 55.46 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for DigiSpice Tech.
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 4.57 cr has Grown at 191.22%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 7.13 cr has Grown at 560.1%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 124.58 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 6.91 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 5.55% and Grown
each quarter in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 4.57 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 7.13 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 0.34
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for DigiSpice Tech.
Non Operating Income - Quarterly
is 55.46 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 318.98 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents






