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CMC Ltd.(Amalgamated) Stock Analysis

Mid Cap
Evaluated by 1319 users | BSE: 517326 | NSE: CMC |
IT - Hardware
CMC incorporated in 1975, is an IT solutions company. Company operates four strategic business units namely customer services (CS), Systems Integration (SI), IT enabled Services (ITES) and Education and Training (E&T). The company has pan-India presence that caters to various sectors such...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
CMC Ltd.(Amalgamated) has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'06Mar'07Mar'08Mar'09Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15
Return on Capital Employed 12.63%27.47%31.39%27.83%30.49%30.51%21.72%26.67%25.53%22.86%
Value Creation Index -0.340.630.870.811.030.870.66NANANA
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 8871,0801,0659408711,0841,4691,9262,2312,513
Y-o-Y Gr. Rt.-21.7%-1.4%-11.7%-7.4%24.5%35.5%31.1%15.8%12.7%
Adjusted EPS (Rs.) 10.1523.3630.7336.1148.6159.2851.1375.5888.5694.72
Y-o-Y Gr. Rt.-130.2%31.6%17.5%34.6%22%-13.8%47.8%17.2%7%
Book Value per Share (Rs.) 7078.72103.21134.42168.54215.85254.85312.3381.51447.25
Adjusted Net Profit 30.870.893.1109147180155229268287
Net Op. Cash Flow (Rs. Cr.) 21.415710267.115316055.8123227128
Debt to Cash Flow from Ops 3.130.110.280.740.0900000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
CMC Ltd.(Amalgamated) should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 12.3%23.6%19.6%12.7%
Adjusted EPS 28.2%14.3%22.8%7%
Book Value per Share 22.921.620.617.2
Share Price 10.9% 0% - -
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'06Mar'07Mar'08Mar'09Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15
Return on Equity (%) 16.0131.4133.7930.432.0930.8421.7326.6525.5322.86
Operating Profit Margin (%) 5.619.3711.2913.4819.2619.4815.5716.2916.0814.8
Net Profit Margin (%) 3.476.558.7511.6416.9216.5610.5411.8912.0311.42
Debt to Equity 0.320.070.090.120.0300000
Working Capital Days 232205205240263224206177153154
Cash Conversion Cycle 402412121591110511
Entity Percentage Holding
Promoters 51.12%
Institutions 36.21%
Non-Institutions 12.67%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of CMC and arrived at the following conclusion:

Past 10 year's financial track record indicates that CMC is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of CMC's performance infers:

CMC earnings have grown by 14.3%, whereas share price has appreciated 0% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of CMC share prices over the last 10 years. Here is what we found out:

CMC share price has appreciated 7.7% annually over the past ten years.

CMC incorporated in 1975, is an IT solutions company. Company operates four strategic business units namely customer services (CS), Systems Integration (SI), IT enabled Services (ITES) and Education and Training (E&T). The company has pan-India presence that caters to various sectors such as the railways, banks, government entities and other organisations with countrywide operations.

The company is subsidiary of Tata Consultancy Services (TCS), one of the leading information

CMC incorporated in 1975, is an IT solutions company. Company operates four strategic business units namely customer services (CS), Systems Integration (SI), IT enabled Services (ITES) and Education and Training (E&T). The company has pan-India presence that caters to various sectors such as the railways, banks, government entities and other organisations with countrywide operations.

The company is subsidiary of Tata Consultancy Services (TCS), one of the leading information technology consulting, services and business process outsourcing organisations.

Company also has research and developments (R&D) centre located in Hyderabad, India that support complex, High Technology Projects.The Company provides end-to end solutions across entire IT value chain such as infrastructure, applications and business processes.

CMC Americas is a subsidiary of the company catering its services in US and market the product and services in Europe, Africa and the Middle East. It also has branch offices in UK and Dubai.

In India, CMC has clientele namely Reserve Bank of India, Indian Railways, Indian Oil Corporation , Bharat Petroleum Corporation , Oil and Natural Gas Corporation , United Western Bank, Bank of India, Bank of Baroda and many more. Internationally the company has clientele like Digital Equipment Corporation (USA), Kuwait Stock Exchange, Mauritius Police, National Bank of Bahrain, Toshiba Electronics, SUN Microsystems, USA are among others.

The company has set up Software Technology Park (STP) at Kolkata that is engaged in carrying out new international contracts in ITES space. CMC also owns two more parks located at Hyderabad and Mumbai.

CMC has received ISO 9001 certification for its quality management and its Systems Integration division has been assessed at SEI CMM Level 5.

Business units

Customer Services (CS) - Under this the company provides services such as infrastructure development and management, networking management, storage, third-party maintenance, third party equipment supply and integration, networking consultancy, and environmental engineering.

Systems Integration (SI) - Under this the company provides services such as software development, software maintenance and support, turnkey project implementation and systems consultancy.

IT enabled Services (ITES) - The Company provides range of services such as document management services, HR services, e-Goveranance services, electronic data interchange (EDI) and Collaborative services for corporates etc.

Education and Training (E&T) - The company provides IT education through its 250 IT-education franchisees. It imparts education to corporate houses, institutions, central and state government departments, professional establishments and other clientsAwards and Recognitions
 
2013

  • Winner of Golden Peacock Award for Corporate Social Responsibility - 2013
  • CMC Limited wins ''National Award for Excellence in Talent Management - 2013'' from Delhi Management Association
  • CMC wins TV5 Business Leader Award in Information Technology sector
  • CMC wins Golden Peacock Business Excellence Award
  • CMC Awarded Certificate of Recognition for Excellence in Corporate Governance by ICSI
  • CMC Recognized on World CSR Day
  • CMC wins TATA TBEM - “Serious Adoption Trophy” for the year 2012
  • CMC wins Asia Pacific winner – Global finals – Financial Times Citi Award for KSRTC Intelligent Transport System
  • CMC's SEZ Hyderabad  wins National Safety Council of India's NSCI Safety Award for 2012
 2012
  • CMC wins the Best of Breed HR Practices Award 2012
  • Intelligent Transport System (ITS) designed and implemented by CMC for KSRTC in Mysore, Karnataka, wins the CSI award for Excellence in IT – 2012
  • CMC wins the Best Business Process Excellence Program award at the Global Awards for Excellence in Quality Management and Leadership 2012
  • CMC adjudged winner of 'Special Commendation' for the Golden Peacock Innovation Management Award 2012
  • Intelligent Transport System designed by CMC for Karnataka State Road Transport Corporation wins eWorld 2012 Award for Best ICT enabled Urban Governance Initiative of the Year
  • Fuel Pilferage Prevention System designed by CMC for Indian Oil Corporation Ltd wins eWorld 2012 Award for Best use of ICT for Public Sector Units
  • CMC's Generation Control Room Project for Mahagenco bags the eMaharashtra Award 2012
  • CMC's Nita Sarang wins Women at Work Leadership award 2012
  • CMC Wins Golden Peacock HR Excellence Award 2012
2011
  • CMC Wins the Golden Peacock Innovative Product / Service Award - 2011
  • CMC conferred with Certificate of Recognition by ICSI for excellence in Corporate Governance 2011
 

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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