Check Before You Invest : Gamma Infoway Exalt Ltd

Q: Which industry/sub-sector does Gamma Infoway Exalt Ltd belong to?

Gamma Infoway Exalt Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q: Is Gamma Infoway Exalt Ltd a good quality company?

Gamma Infoway Exalt Ltd is a quality company, based on a 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: Is Gamma Infoway Exalt Ltd undervalued or overvalued?

Gamma Infoway Exalt Ltd appears 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. Price to Earnings, Current: -, Historic Median: -. Price to Book, Current: 0.12, Historic Median: 0.12. Price to Sales, Current: -, Historic Median: -. EV to EBITDA, Current: -16.55, Historic Median: -16.55

Q: Is Gamma Infoway Exalt Ltd a good buy now?

Gamma Infoway Exalt 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

Q: Revenue growth of Gamma Infoway Exalt Ltd?

Gamma Infoway Exalt Ltd revenue growth is 0% for FY-2016, which is above its 5-year CAGR of -100%, indicating faster growth.

Q: Gross Profit margin of Gamma Infoway Exalt Ltd?

Gamma Infoway Exalt Ltd Gross profit margin which is the profit after deduction of direct costs, is -60.4% for FY-2016, which is in line with its 5-year median of -60.4%, indicating stable margins.

Q: Operating Profit Margin of Gamma Infoway Exalt Ltd?

Gamma Infoway Exalt Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0% for FY-2016, which is above its 5-year median of -57.22% indicating increasing margins.

Q: Net Profit Margin of Gamma Infoway Exalt Ltd?

Gamma Infoway Exalt Ltd Net Profit Margin is -% for FY-2016, is above its 5-year median of -96.32%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: -60.4, Historic Median: -60.4. Operating Profit Margin (%), Current: -, Historic Median: -57.22. Net Profit Margin (%), Current: -, Historic Median: -96.32

Q: Return on Asset of Gamma Infoway Exalt Ltd?

Gamma Infoway Exalt Ltd Return on Asset is -2043.25%, which is below its 5-year historical median of -1.27%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Gamma Infoway Exalt Ltd?

Gamma Infoway Exalt Ltd Return on capital employed is 0% for FY-2016, which is above its 5-year historical median of -0.67%. The current ROCE is in line with its estimated weighted average cost of capital (WACC) of %, indicating value erosion.

Check Before You Invest : Gamma Infoway Exalt Ltd

BSE: 517391 NSE: ISIN: INE970A01016

| Sector: IT & ITES | Industry: IT - Software

Snapshot

Q.1 Which industry/sub-sector does Gamma Infoway Exalt Ltd belong to?

Gamma Infoway Exalt Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Gamma Infoway Exalt Ltd a good quality company?

Gamma Infoway Exalt Ltd is a quality company, based on a 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 Gamma Infoway Exalt Ltd undervalued or overvalued?

Gamma Infoway Exalt Ltd appears 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	5-year Historic Median
Price to Earnings	-	-
Price to Book	0.12	0.12
Price to Sales	-	-
EV to EBITDA	-16.55	-16.55

Q.4 Is Gamma Infoway Exalt Ltd a good buy now?

Gamma Infoway Exalt 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.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Gamma Infoway Exalt Ltd?

Gamma Infoway Exalt Ltd revenue growth is 0% for FY-2016, which is above its 5-year CAGR of -100%, indicating faster growth.

Q.2 Gross Profit margin of Gamma Infoway Exalt Ltd?

Gamma Infoway Exalt Ltd Gross profit margin which is the profit after deduction of direct costs, is -60.4% for FY-2016, which is in line with its 5-year median of -60.4%, indicating stable margins.

Q.3 Operating Profit Margin of Gamma Infoway Exalt Ltd?

Gamma Infoway Exalt Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0% for FY-2016, which is above its 5-year median of -57.22% indicating increasing margins.

Q.4 Net Profit Margin of Gamma Infoway Exalt Ltd?

Gamma Infoway Exalt Ltd Net Profit Margin is -% for FY-2016, is above its 5-year median of -96.32%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	-60.4	-60.4
Operating Profit Margin (%)	-	-57.22
Net Profit Margin (%)	-	-96.32

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Gamma Infoway Exalt Ltd?

Gamma Infoway Exalt Ltd Return on Asset is -2043.25%, which is below its 5-year historical median of -1.27%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Gamma Infoway Exalt Ltd?

Gamma Infoway Exalt Ltd Return on capital employed is 0% for FY-2016, which is above its 5-year historical median of -0.67%. The current ROCE is in line with its estimated weighted average cost of capital (WACC) of %, indicating value erosion.

Q.7 Return on Equity (ROE) of Gamma Infoway Exalt Ltd?

Gamma Infoway Exalt Ltd Return on equity is 0% for FY-2016, which is above its 5-year historical median of -0.69%, indicating the business is making better use of its shareholders capital.

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

Q.8 Debt to Equity ratio of Gamma Infoway Exalt Ltd?

Gamma Infoway Exalt Ltd Debt-to-Equity ratio is -0.56, which is lower the industry average of 0.01, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of Gamma Infoway Exalt Ltd?

Gamma Infoway Exalt Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Gamma Infoway Exalt Ltd?

Q.1 Promoter shareholding and pledge status of Gamma Infoway Exalt Ltd?

Promoters hold 16.82% of the Gamma Infoway Exalt Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Gamma Infoway Exalt Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Gamma Infoway Exalt Ltd vs industry peers?

Gamma Infoway Exalt Ltd revenue CAGR is -100.00%, compared to the industry median CAGR of 3.17%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-	3.2
Gross Profit Growth (%)	0	18.4
Operating Profit Growth (%)	0	18.8
Net Profit Growth (%)	0	21.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	-	0.46
ROE (%)	-	4.22
ROCE (%)	-	6.49
Cash Conversion Cycle (days)	-	36

Valuation & price assessment

Q.1 Stock return of Gamma Infoway Exalt Ltd over the last decade?

Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

Q.2 Valuation ratios of Gamma Infoway Exalt Ltd vs historical?

The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	-	47.38
Price to Book	0.12	0.12	2.64
Price to Sales	-	-	4.79
EV to EBITDA	-16.55	-16.55	16.75

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Check Before You Invest : Gamma Infoway Exalt Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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