Why is Xchanging Solutions Ltd ?
1
Poor long term growth as Net Sales has grown by an annual rate of 0.46% and Operating profit at 5.07% over the last 5 years
2
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
3
Below par performance in long term as well as near term
- Along with generating -24.06% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
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 Xchanging Sol. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Xchanging Sol.
-24.06%
-0.74
32.46%
Sensex
4.83%
0.41
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
0.46%
EBIT Growth (5y)
5.07%
EBIT to Interest (avg)
34.31
Debt to EBITDA (avg)
0.79
Net Debt to Equity (avg)
-0.59
Sales to Capital Employed (avg)
0.34
Tax Ratio
19.72%
Dividend Payout Ratio
2,764.67%
Pledged Shares
0
Institutional Holding
0.30%
ROCE (avg)
32.53%
ROE (avg)
9.41%
Valuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
35
Price to Book Value
2.57
EV to EBIT
11.25
EV to EBITDA
11.23
EV to Capital Employed
4.80
EV to Sales
3.66
PEG Ratio
0.16
Dividend Yield
2.36%
ROCE (Latest)
42.70%
ROE (Latest)
16.12%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Bullish
Technical Movement
14What is working for the Company
OPERATING PROFIT TO INTEREST(Q)
Highest at 12.69 times
ROCE(HY)
Highest at 17.44%
NET SALES(Q)
Highest at Rs 52.81 cr
PAT(Q)
At Rs 16.26 cr has Grown at 23.4% (vs previous 4Q average
EPS(Q)
Highest at Rs 1.46
-2What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Xchanging Sol.
Operating Profit to Interest - Quarterly
Highest at 12.69 times and Grown
each quarter in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales - Quarterly
Highest at Rs 52.81 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 16.26 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 16.26 cr has Grown at 23.4% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 13.18 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 1.46
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)






