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Check Before You Invest : IKF Technologies Ltd

BSE: 532414 NSE: ISIN: INE052C01027
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does IKF Technologies Ltd belong to?
IKF Technologies Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is IKF Technologies Ltd a good quality company?
IKF Technologies Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is IKF Technologies Ltd undervalued or overvalued?
IKF Technologies Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is IKF Technologies Ltd a good buy now?
IKF Technologies 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 IKF Technologies Ltd?
IKF Technologies Ltd revenue growth is -64.7% for FY-2019 , which is below its 5 year CAGR of -20.4% , indicating slower growth.
Q.2 Gross Profit margin of IKF Technologies Ltd?
IKF Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.7% for FY-2019 , which is above its 5 year median of 7.7% , indicating increasing margins.
Q.3 Operating Profit Margin of IKF Technologies Ltd?
IKF Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -5.49% for FY-2019 , which is below its 5 year median of 8.02% indicating decreasing margins.
Q.4 Net Profit Margin of IKF Technologies Ltd?
IKF Technologies Ltd Net Profit Margin is -0.2% for FY-2019 , is below with its 5 year median of 0.63%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 10.7 7.7
Operating Profit Margin -5.49 8.02
Net Profit Margin -0.2 0.63
Q.5 Return on Asset of IKF Technologies Ltd?
IKF Technologies Ltd Return on Asset is -0.01%, which is below its 5 year historical median of 0.1%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of IKF Technologies Ltd?
IKF Technologies Ltd Return on equity is -0.02% for FY-2019 , which is below its historical median of 0.17%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of IKF Technologies Ltd?
IKF Technologies Ltd Return on capital employed is 0.97% for FY-2019 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of IKF Technologies Ltd?
IKF Technologies Ltd Cash conversion cycle is 1606 days, above its historical median of 588 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.06 0.2
ROE -0.02 0.17
ROCE 0.97 1.08
Cash Conversion Cycle 1606 days 588 days
Q.9 Debt to Equity ratio of IKF Technologies Ltd?
IKF Technologies Ltd Debt-to-Equity ratio is 0.04 , which is above with the industry average of 0.01 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of IKF Technologies Ltd?
IKF Technologies Ltd Debt to cash flow from operations is 0.81 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of IKF Technologies Ltd?
Promoters hold 12.55% of the IKF Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of IKF Technologies Ltd vs industry peers?
IKF Technologies Ltd revenue CAGR is -20.39% , compared to the industry median CAGR of 2.87% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 14.2 23.6
Gross Profit 1.5 2
Operating Profit -0.8 1.2
Net Profit -0 0.8
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.06 0.45
ROE -0.02 4.22
ROCE 0.97 6.53
Cash Conversion Cycle (days) 1606.26 36

Valuation & price assessment

Q.1 Stock return of IKF Technologies Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - - -
Q.3 Valuation ratios of IKF Technologies 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 0.09 0.09 2.61
Price to Sales 1.1 1.10 4.40
EV to EBITDA 18.35 18.35 17.20

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