DRC Systems India Ltd (DRCSYSTEMS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Fidel Softech

DRC Systems

Alphalogic Tech.

3i Infotech

Aion-Tech Soluti

FCS Software

Adcounty Media.

Sattrix Infor.

CapitalNumbers

Methodhub Softwa

P.E. Analytics

Why is DRC Systems India Ltd ?

High Management Efficiency with a high ROE of 23.79%

Company has a low Debt to Equity ratio (avg) at 0 times

Healthy long term growth as Net Sales has grown by an annual rate of 53.64%

Positive results in Dec 25

NET SALES(Q) Highest at Rs 27.18 cr
PBDIT(Q) Highest at Rs 7.51 cr.
PBT LESS OI(Q) Highest at Rs 5.56 cr.

With ROE of 21.9, it has a Attractive valuation with a 3.3 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -39.97%, its profits have risen by 32.2% ; the PEG ratio of the company is 0.6

Majority shareholders : Non Institution

Below par performance in long term as well as near term

Along with generating -39.97% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to DRC Systems 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 DRC Systems for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

DRC Systems

-39.97%

-0.70

56.74%

Sensex

7.07%

0.61

11.53%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

53.64%

EBIT Growth (5y)

38.45%

EBIT to Interest (avg)

12.20

Debt to EBITDA (avg)

1.90

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

0.88

Tax Ratio

8.91%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.35%

ROCE (avg)

20.91%

ROE (avg)

23.79%

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

3.35

EV to EBIT

12.77

EV to EBITDA

9.61

EV to Capital Employed

3.44

EV to Sales

2.94

PEG Ratio

0.60

Dividend Yield

ROCE (Latest)

24.30%

ROE (Latest)

21.94%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

No Trend

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

22What is working for the Company

NET SALES(Q)

Highest at Rs 27.18 cr

PBDIT(Q)

Highest at Rs 7.51 cr.

PBT LESS OI(Q)

Highest at Rs 5.56 cr.

PAT(Q)

Highest at Rs 6.28 cr.

EPS(Q)

Highest at Rs 0.38

-3What is not working for the Company

ROCE(HY)

Lowest at 23.52%

Loading Valuation Snapshot...

Here's what is working for DRC Systems

Net Sales - Quarterly

At Rs 27.18 cr has Grown at 45.0% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 18.75 Cr

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 6.28 cr has Grown at 51.2% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 4.15 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 27.18 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 7.51 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 5.56 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 5.56 cr has Grown at 24.9% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 4.45 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 6.28 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 0.38

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)