MoneyWorks4Me

Check Before You Invest : Blue Cloud Softech Solutions Ltd

BSE: 539607 NSE: BLUECLOUDS ISIN: INE373T01047
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does Blue Cloud Softech Solutions Ltd belong to?
Blue Cloud Softech Solutions Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is Blue Cloud Softech Solutions Ltd a good quality company?
Blue Cloud Softech Solutions Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Blue Cloud Softech Solutions Ltd undervalued or overvalued?
Blue Cloud Softech Solutions Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 0-year
Historic Median
Price to Earnings 27.51 70.02
Price to Book 1.34 8.28
Price to Sales 1.62 9.67
EV to EBITDA 12.3 38.26
Q.4 Is Blue Cloud Softech Solutions Ltd a good buy now?
Blue Cloud Softech Solutions 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

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

C: How much debt does the business have and is it at a sustainable level?

Q.1 Debt to Equity ratio of Blue Cloud Softech Solutions Ltd?
Blue Cloud Softech Solutions Ltd Debt-to-Equity ratio is 0.74, which is above the industry average of , indicating higher debt levels in the industry.

Q.2 Debt to cash flow from operations of Blue Cloud Softech Solutions Ltd?
Blue Cloud Softech Solutions Ltd Debt to cash flow from operations is -7.18, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Blue Cloud Softech Solutions Ltd?

Q.1 Promoter shareholding and pledge status of Blue Cloud Softech Solutions Ltd?
Promoters hold 38.44% of the Blue Cloud Softech Solutions Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Blue Cloud Softech Solutions Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Blue Cloud Softech Solutions Ltd vs industry peers?
Blue Cloud Softech Solutions Ltd revenue CAGR is %, compared to the industry median CAGR of 0%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 0-year
Industry Median
Revenue Growth (%) - -
Gross Profit Growth (%) 190.9 20.1
Operating Profit Growth (%) 159.3 13.6
Net Profit Growth (%) 175 22.8
Operating Efficiency
Current Level 0-year
Industry Median
Asset Turnover (x) 2.93 0.69
ROE (%) - 10.88
ROCE (%) - 15.74
Cash Conversion Cycle (days) -383.73 2

Valuation & price assessment

Q.1 Stock return of Blue Cloud Softech Solutions Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 19.9% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
19.9% 30.1% -15.9% -31.3%
Q.2 Valuation ratios of Blue Cloud Softech Solutions Ltd vs historical?
The current P/E ratio of 27.51 is lower than its historical median of 70.02, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 0-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings 27.51 70.02 -
Price to Book 1.34 8.28 -
Price to Sales 1.62 9.67 -
EV to EBITDA 12.3 38.26 -

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