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Check Before You Invest : Fourth Generation Information Systems Ltd

BSE: 532403 NSE: ISIN: INE739B01039
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does Fourth Generation Information Systems Ltd belong to?
Fourth Generation Information Systems Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is Fourth Generation Information Systems Ltd a good quality company?
Fourth Generation Information Systems Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Fourth Generation Information Systems Ltd undervalued or overvalued?
Fourth Generation Information Systems Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Fourth Generation Information Systems Ltd a good buy now?
Fourth Generation Information Systems Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Fourth Generation Information Systems Ltd?
Fourth Generation Information Systems Ltd revenue growth is 133.3% for FY-2025 , which is above its 5 year CAGR of 28.5% , indicating faster growth.
Q.2 Gross Profit margin of Fourth Generation Information Systems Ltd?
Fourth Generation Information Systems Ltd Gross profit margin which is the profit after deduction of direct costs, is -611.1% for FY-2025 , which is below its 5 year median of 0% , indicating decreasing margins.
Q.3 Operating Profit Margin of Fourth Generation Information Systems Ltd?
Fourth Generation Information Systems Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -252.26% for FY-2025 , which is below its 5 year median of 0% indicating decreasing margins.
Q.4 Net Profit Margin of Fourth Generation Information Systems Ltd?
Fourth Generation Information Systems Ltd Net Profit Margin is -619.12% for FY-2025 , is below with its 5 year median of -%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin -611.1 -
Operating Profit Margin -252.26 -
Net Profit Margin -619.12 -
Q.5 Return on Asset of Fourth Generation Information Systems Ltd?
Fourth Generation Information Systems Ltd Return on Asset is -19.44%, which is below its 5 year historical median of -13.41%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Fourth Generation Information Systems Ltd?
Fourth Generation Information Systems Ltd Return on equity is 0% for FY-2025 , which is in line with its historical median of 0%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Fourth Generation Information Systems Ltd?
Fourth Generation Information Systems Ltd Return on capital employed is -14.42% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Fourth Generation Information Systems Ltd?
Fourth Generation Information Systems Ltd Cash conversion cycle is -417 days, below its historical median of 0 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.03 -
ROE - -
ROCE -14.42 -14.42
Cash Conversion Cycle -417 days -
Q.9 Debt to Equity ratio of Fourth Generation Information Systems Ltd?
Fourth Generation Information Systems Ltd Debt-to-Equity ratio is -2.79 , which is lower with the industry average of 0.01 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Fourth Generation Information Systems Ltd?
Fourth Generation Information Systems Ltd Debt to cash flow from operations is 8.11 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Fourth Generation Information Systems Ltd?
Promoters hold 34.15% of the Fourth Generation Information Systems Ltd, with 74.24% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Fourth Generation Information Systems Ltd vs industry peers?
Fourth Generation Information Systems Ltd revenue CAGR is 28.47% , compared to the industry median CAGR of 2.87% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 0.1 23.3
Gross Profit -0.9 1.8
Operating Profit -0.4 1
Net Profit -0.9 0.8
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.03 0.44
ROE - 3.97
ROCE -14.42 6.41
Cash Conversion Cycle (days) -416.97 36

Valuation & price assessment

Q.1 Stock return of Fourth Generation Information Systems Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 4.3% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 4.3% 17% 40.6% 21.3%
Q.3 Valuation ratios of Fourth Generation Information Systems Ltd vs historical?
The current P/E is similar that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 0.00 22.96
Price to Book -1.64 -4.21 2.61
Price to Sales 101.84 0.00 4.40
EV to EBITDA -18.7 -11.43 17.20

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