Sasken Technologies Ltd (SASKEN) 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

BLS E-Services

GHV Infra

Ceinsys Tech

Expleo Solutions

Saksoft

Accelya Solution

Protean eGov

Sasken Technol.

Network People

Genesys Intl.

Ivalue Infosolut

Why is Sasken Technologies Ltd ?

Poor long term growth as Operating profit has grown by an annual rate -28.92% of over the last 5 years

With ROE of 4.9, it has a Very Expensive valuation with a 2.4 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -42.95%, its profits have fallen by -39.7%

Despite the size of the company, domestic mutual funds hold only 0.96% 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

Below par performance in long term as well as near term

Along with generating -42.95% 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 sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Sasken Technol. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sasken Technol.

-42.95%

-1.01

42.67%

Sensex

4.69%

0.40

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.68%

EBIT Growth (5y)

-28.92%

EBIT to Interest (avg)

62.45

Debt to EBITDA (avg)

0.43

Net Debt to Equity (avg)

-0.10

Sales to Capital Employed (avg)

0.68

Tax Ratio

18.01%

Dividend Payout Ratio

75.18%

Pledged Shares

Institutional Holding

19.78%

ROCE (avg)

12.35%

ROE (avg)

12.64%

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

2.38

EV to EBIT

106.77

EV to EBITDA

42.61

EV to Capital Employed

2.53

EV to Sales

2.22

PEG Ratio

Dividend Yield

1.99%

ROCE (Latest)

2.37%

ROE (Latest)

4.90%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly 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

20What is working for the Company

NET SALES(Q)

At Rs 255.49 cr has Grown at 45.8% (vs previous 4Q average

PBDIT(Q)

Highest at Rs 15.01 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 5.87%

PBT LESS OI(Q)

Highest at Rs 4.75 cr.

DPR(Y)

Highest at 77.55%

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 61.82 cr

-11What is not working for the Company

OPERATING CF(Y)

Lowest at Rs -71.80 Cr

PAT(Latest six months)

At Rs 19.19 cr has Grown at -36.46%

ROCE(HY)

Lowest at 6.47%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.45 times

NON-OPERATING INCOME(Q)

is 67.15 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Sasken Technol.

Net Sales - Quarterly

At Rs 255.49 cr has Grown at 45.8% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 175.27 Cr

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 15.01 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 5.87% and Grown

each quarter in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 4.75 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 61.82 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio (DPR) - Annually

Highest at 77.55%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Sasken Technol.

Profit After Tax (PAT) - Latest six months

At Rs 19.19 cr has Grown at -36.46%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is negative

PAT (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 4.45 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Operating Cash Flow - Annually

Lowest at Rs -71.80 Cr

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Non Operating Income - Quarterly

is 67.15 % 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