Digitide Solutions Ltd (DIGITIDE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

One Point One

Firstsour.Solu.

eClerx Services

RPSG Ventures

Digitide Solutio

Alldigi Tech

Hinduja Global

Ekansh Concept

IIRM Holdings

Unified Data

Qualitek Labs

Why is Digitide Solutions Ltd ?

High Management Efficiency with a high ROCE of 14.60%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.55 times

Poor long term growth as Net Sales has grown by an annual rate of % and Operating profit at 0% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

PAT(Q) At Rs 3.42 cr has Fallen at -43.7% (vs previous 4Q average)
OPERATING PROFIT TO INTEREST (Q) Lowest at 6.00 times
INTEREST(Q) Highest at Rs 14.66 cr

With ROCE of 11.8, it has a Fair valuation with a 1.7 Enterprise value to Capital Employed

Over the past year, while the stock has generated a return of -50.94%, its profits have fallen by -104%

Majority shareholders : Promoters

Underperformed the market in the last 1 year

Even though the market (BSE500) generated negative returns of -0.39% in the last 1 year, its fall in the stock was much higher with a return of -50.94%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Digitide Solutio should be less than 10%
Overall Portfolio exposure to Commercial Services & Supplies should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commercial Services & Supplies)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Digitide Solutio for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Digitide Solutio

-50.92%

-0.89

56.87%

Sensex

-6.13%

-0.46

13.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.00%

EBIT Growth (5y)

0.00%

EBIT to Interest (avg)

3.89

Debt to EBITDA (avg)

1.07

Net Debt to Equity (avg)

0.32

Sales to Capital Employed (avg)

2.53

Tax Ratio

82.45%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

19.31%

ROCE (avg)

20.65%

ROE (avg)

15.00%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.94

EV to EBIT

14.51

EV to EBITDA

5.54

EV to Capital Employed

1.71

EV to Sales

0.62

PEG Ratio

Dividend Yield

ROCE (Latest)

11.78%

ROE (Latest)

-0.59%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

NET SALES(Q)

Highest at Rs 799.95 cr

PBDIT(Q)

Highest at Rs 87.90 cr.

-18What is not working for the Company

PAT(Q)

At Rs 3.42 cr has Fallen at -43.7% (vs previous 4Q average

OPERATING PROFIT TO INTEREST (Q)

Lowest at 6.00 times

INTEREST(Q)

Highest at Rs 14.66 cr

PBT LESS OI(Q)

Lowest at Rs 6.83 cr.

NON-OPERATING INCOME(Q)

is 43.23 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs -0.85

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Here's what is working for Digitide Solutio

Net Sales - Quarterly

Highest at Rs 799.95 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 87.90 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (Rs Cr)

Here's what is not working for Digitide Solutio

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 6.83 cr has Fallen at -71.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 23.94 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 3.42 cr has Fallen at -43.7% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 6.08 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 6.00 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest - Quarterly

Highest at Rs 14.66 cr

in the last five quarters and Increased by 22.06 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 6.83 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 43.23 % 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

Earnings per Share (EPS) - Quarterly

Lowest at Rs -0.85

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)