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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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DRC Systems

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Why is DRC Systems India Ltd ?

High Management Efficiency with a high ROE of 21.27%

The company is Net-Debt Free

Healthy long term growth as Net Sales has grown by an annual rate of 55.05% and Operating profit at 66.30%

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

NET SALES(Latest six months) At Rs 50.58 cr has Grown at 43.61%
PAT(Latest six months) At Rs 10.72 cr has Grown at 22.37%
DEBTORS TURNOVER RATIO(HY) Highest at 43.21 times

With ROE of 17.8, it has a Very Attractive valuation with a 1.8 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 -23.34%, its profits have risen by 33.2% ; the PEG ratio of the company is 0.4

Majority shareholders : Non Institution

Below par performance in long term as well as near term

Along with generating -23.34% 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

-22.41%

-0.54

43.07%

Sensex

-2.73%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

55.05%

EBIT Growth (5y)

66.30%

EBIT to Interest (avg)

13.67

Debt to EBITDA (avg)

1.64

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

0.88

Tax Ratio

8.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.39%

ROCE (avg)

20.74%

ROE (avg)

21.27%

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

1.79

EV to EBIT

9.31

EV to EBITDA

7.05

EV to Capital Employed

1.81

EV to Sales

2.08

PEG Ratio

0.44

Dividend Yield

ROCE (Latest)

19.43%

ROE (Latest)

17.85%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

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

14What is working for the Company

NET SALES(Latest six months)

At Rs 50.58 cr has Grown at 43.61%

PAT(Latest six months)

At Rs 10.72 cr has Grown at 22.37%

DEBTORS TURNOVER RATIO(HY)

Highest at 43.21 times

EPS(Q)

Highest at Rs 0.39

-3What is not working for the Company

ROCE(HY)

Lowest at 19.83%

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Here's what is working for DRC Systems

Net Sales - Latest six months

At Rs 50.58 cr has Grown at 43.61%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Profit After Tax (PAT) - Latest six months

At Rs 10.72 cr has Grown at 22.37%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 0.39

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Debtors Turnover Ratio- Half Yearly

Highest at 43.21 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for DRC Systems

Non Operating Income - Quarterly

Highest at Rs 1.14 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income