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Birlasoft Ltd. Stock Analysis

Mid Cap
Evaluated by 4021 users | BSE: 532400 | NSE: BSOFT |
IT - Software
KPIT Cummins Infosystems was established in 1990 as KPIT Infosystems and became a public limited company in 1999. KPIT Cummins is focused on co-innovating domain intensive technology solutions for manufacturing corporations (in Automotive, Industrials, Hi-Tech verticals) and Diversified...
1. Right Stock
Very Good
2. Right Price
3. Right Time

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.
Birlasoft Ltd. 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'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 16.43%16.35%19.15%17.95%13.33%17.16%12.54%12.08%14.91%11.78%
Value Creation Index 0.030.290.600.500.110.430.040.010.24-0.02
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 9871,5002,2392,6942,9903,2243,3203,6643,9423,291
Y-o-Y Gr. Rt.-52%49.2%20.3%11%7.8%3%10.4%7.6%-16.5%
Adjusted EPS (Rs.) 5.527.4711.4114.4911.6915.0811.5112.6910.077.35
Y-o-Y Gr. Rt.-35.3%52.7%27%-19.3%29%-23.7%10.3%-20.7%-27%
Book Value per Share (Rs.) 34.2840.0353.7268.6568.8273.1783.1994.8161.1967.88
Adjusted Net Profit 96.9133220269220283217240276203
Net Op. Cash Flow (Rs. Cr.) 64.3100120103289410163407-71.6312
Debt to Cash Flow from Ops 1.722.283.024.81.740.612.370.76-0.530
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.
Birlasoft Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 14.3%1.9%-0.3%-16.5%
Adjusted EPS 3.2%-8.9%-13.9%-27%
Book Value per Share 7.9-0.3-6.610.9
Share Price 9.1% 5.3% 9.5% 158.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 19.5820.2125.1523.2617.121.1314.614.1515.6411.28
Operating Profit Margin (%) 15.3814.4415.8715.5310.8513.489.510.3311.7511.91
Net Profit Margin (%) 9.848.8410.239.987.358.796.536.87.326.18
Debt to Equity 0.180.320.350.390.390.180.250.170.020
Working Capital Days 106116107112119116119114108130
Cash Conversion Cycle 32394259686469644953
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 40.74%
Institutions 34.11%
Non-Institutions 24.74%
Others 0.41%
Pledged *41.7232.3632.3328.3569.060.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Birlasoft Ltd. and arrived at the following conclusion:

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

The 5-year analysis of Birlasoft Ltd.'s performance infers:

Birlasoft Ltd. earnings have declined by -8.9%, whereas share price has appreciated 5.3% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

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

Birlasoft Ltd. share price has appreciated 8.5% annually over the past ten years.

KPIT Cummins Infosystems was established in 1990 as KPIT Infosystems and became a public limited company in 1999. KPIT Cummins is focused on co-innovating domain intensive technology solutions for manufacturing corporations (in Automotive, Industrials, Hi-Tech verticals) and Diversified Financial Services to help its customers become more efficient, integrated and innovative enterprises. It has People strength of 4800+.

KPIT Cummins Infosystems, a global IT consulting organization focused

KPIT Cummins Infosystems was established in 1990 as KPIT Infosystems and became a public limited company in 1999. KPIT Cummins is focused on co-innovating domain intensive technology solutions for manufacturing corporations (in Automotive, Industrials, Hi-Tech verticals) and Diversified Financial Services to help its customers become more efficient, integrated and innovative enterprises. It has People strength of 4800+.

KPIT Cummins Infosystems, a global IT consulting organization focused on the automotive and semiconductor sectors. It got its current name when the company merged with Cummins Infotech.

The company is present in US, UK, Germany, France, Poland, and Japan, and India. It provides free technical support for NGOs and small schools in Pune. Top clients include Cummins, HP, Deutsche Bank, Unilever and Renesas.

Different Divisions

Manufacturing Solutions- is a focus vertical in the Automotive, Industrials and Hi-Tech domains.

Diversified Financial Services- its proprietary tools include Data-on-move Suite of products, e-purse framework, and Mobile Payment frameworksAdvanced Technology Solutions- it focuses on automotive electronics, mechanical design, and semiconductor solutions.

Enterprise IT Solutions-it focuses on ERP and business intelligence.Business Process Outsourcing- it focuses on finance and accounting and risk management.

KPIT Cummins Global Business Solutions (wholly-owned subsidiary) is to partner Cummins in delivering finance and accounting services to Cummins entities worldwide.

The company has a strategic partnership with South Africa-based Business Connexion to enter the South African market. It is to have two offshore development centers for Dialog Semiconductor, a developer of mixed signal semiconductor solutions.The company is a member of Japan Automotive Software Platform ARchitecture to develop and establish a standard Japan automotive platform architecture.

Technology Facts about the company

  • KPIT Cummins, an ARM Connected Community Member is certified as an ARM Approved Design Center
  • Premium Member of AUTOSAR (Automotive Open System Architecture)
  • Associate member of JasPar (Japan Automotive Software Platform Architecture)
  • World’s second company to achieve SPICE Level 5 accreditation (Software Process Improvement and Capability Determination)
  • Successfully executed projects compliant with Safety integrity Level (SIL) specifications
  • Largest 3rd party ODC (Offshore Development Center) in Automotive
  • Largest 3rd party ODC (Offshore Development Center) in Semiconductor (for a Japanese Semiconductor giant)
  • Largest Offshore Development relationship - Multi continental, multi technology, multi service for Discrete Manufacturing giant.

The company is involved in consulting expertise projects in Supply Chain Management (SCM), Product Lifecycle Management (PLM), Manufacturing Execution Systems (MES), etc. It has also developed strengths in ERP Audits, Risk Management and Compliance consultancy services and Activity based costing amongst many others.

Work with Investment and Retail banks, Asset Management and Financial Platform institutions, with a focus on securities services, credit cards, and fund administration, insurance and leasing. Its offerings include Application Decommissioning, Maintenance, Development, Implementation, Re-engineering and Integration for global banks and financial organizations.

Product engineering services, network operating system development, product lifecycle development, designing product its analysis and optimization.

Designing and developing chips-system on chip. Analog mixed system, also provide end to end validation that ensures zero defects and excellent on ground performance.

Milestones achieved

  • 1990- KPIT Infosystems incorporated ,by a group of CPAs
  • 1994-98- Excellence in exports from Government of India
  • 1995-96- Outstanding achievement award from Oracle
  • 1997- Achieved ISO 9001, certified by KPMG
  • 1999- IPO: 42 times oversubscribed           
  • Becomes a public limited company in India
  • 2002- Merger of Cummins Infotech into KPIT Infosystems to form KPIT Cummins Infosystems Limited.
  • 2003- KPIT Cummins assessed at CMM Level 5
  • 2004- ISO 9001:2000         
  • Acquisition of Panex Consulting ,USA
  • 2005- Lehman brothers picks up 8% stake in KPIT Cummins          
  • Integrated all off- shore facilities in Pune into the state of the art campus at Hinjawadi         
  • Acquisition of SolvCentral.com, USA         
  • Acquisition of Pivolis.com, France
  • 2006- Acquisition of CG Smith, India
  • 2007- Achieved the corporate mission of being $100 million company by the financial year 2006-07.Strategic investment by Cargill ventures, a venture capital arm of Cargill Inc.
  • 2008- Acquisition of the Mechanical Design business of Harita TVS Technologies, India.

Awards/Achievements

  • The company is CMMI Level 5, ISO 9001:2000, and ISO27001 certified.
  • The company was rated among the five rising stars in IT by Outlook Business in May 2007.
  • One of the world’s first few companies to achieve the BS25999:2007, a Business Continuity Management Standard.
  • In 1995-96,received outstanding achievement award from Oracle.
  • In 1994-95, received excellence award in exports from Govt. of India

Recent developments

KPIT Cummins Infosystems  and Dassault Systèmes (DS) the world leader for Product Lifecycle Management (PLM) software solutions have announced a go-to-market partnership for joint solution & business development on ENOVIA Platform.

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

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