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Mahindra Satyam Ltd. (Amalgamated) Stock Analysis

Mid Cap
Evaluated by 1110 users | BSE: 500376 | NSE: SATYAMCOMP |
IT - Software
Satyam established in June 24, 1987 is a leader in global business & information technology .It provides services encompassing designing system, developing software, consulting, systems integration, application maintenance and outsourcing solutions to clients in over 20 industries. Company...

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.
Value Creation
 Mar'03Mar'04Mar'05Mar'06Mar'07Mar'08Mar'09Mar'10Mar'11Mar'12
Return on Capital Employed 20.47%23.92%26.32%27.98%27.97%26.33%-163.99%11.5%8.35%27.77%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,0242,5423,4644,6346,2288,1378,4065,1014,7765,964
Y-o-Y Gr. Rt.-25.6%36.3%33.8%34.4%30.7%3.3%-39.3%-6.4%24.9%
Adjusted EPS (Rs.) 6.658.9611.9816.321.225.82-106.632.252.439.37
Y-o-Y Gr. Rt.-34.7%33.7%36.1%30.1%21.8%-513%NA8%285.6%
Book Value per Share (Rs.) 33.9240.7950.3766.7886.65109.71-7.7519.5318.3728.16
Adjusted Net Profit 4185667651,0581,4141,731-7,1862652861,102
Net Op. Cash Flow (Rs. Cr.) 5014356447861,0301,413162-155-17197
Debt to Cash Flow from Ops 0.040.020.020.020.010.0211.57-8.2-7.3812.99
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.
Mahindra Satyam Ltd. (Amalgamated) should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 12.8%-0.9%-10.8%24.9%
Adjusted EPS 3.9%-15.1%NA285.6%
Book Value per Share -2.1-20.1053.3
Share Price 5.6% - - -
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'03Mar'04Mar'05Mar'06Mar'07Mar'08Mar'09Mar'10Mar'11Mar'12
Return on Equity (%) 20.5724.0226.3828.0127.9426.34-210.2629.8712.8140.27
Operating Profit Margin (%) 30.5727.325.725.7724.5622.49-78.669.48.4815.46
Net Profit Margin (%) 20.6622.2922.0822.8322.7121.28-85.485.25.9818.48
Debt to Equity 0.0100000-3.580.550.580.38
Working Capital Days 105101899299109111140137149
Cash Conversion Cycle 30384443465036161823
Entity Percentage Holding
Promoters 42.63%
Institutions 39.45%
Non-Institutions 17.92%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Mahindra Satyam's performance infers:

Mahindra Satyam earnings have declined by -15.1%, whereas share price has appreciated 0% 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 Mahindra Satyam share prices over the last 10 years. Here is what we found out:

Mahindra Satyam share price has appreciated 1.4% annually over the past ten years.

Satyam established in June 24, 1987 is a leader in global business & information technology .It provides services encompassing designing system, developing software, consulting, systems integration, application maintenance and outsourcing solutions to clients in over 20 industries.

Company provides expertise in technological practices, creating advanced, global delivery model to help client to transmute their businesses into high value processes that improves business performance.

Satyam established in June 24, 1987 is a leader in global business & information technology .It provides services encompassing designing system, developing software, consulting, systems integration, application maintenance and outsourcing solutions to clients in over 20 industries.

Company provides expertise in technological practices, creating advanced, global delivery model to help client to transmute their businesses into high value processes that improves business performance.

Satyam has its presence in 66 countries, with development centers located  in 28 cities.It has client base of 670 client of which 185 are on Fortune global 500 companies & Fortune US 500 companies.

It has present employee strength of 52,865 excelling in engineering and product development, supply chain management, client relationship management, business process quality, business intelligence, enterprise integration, and infrastructure management, among other key capabilities.

Satyam caters its deep expertise to wide range of  industries like aerospace & defense,automotive,chemicals, education, energy , financial services, healthcare, industrial equipment , insurance, infrastructure, life sciences, manufacturing, media and entertainment, public services,  retail , semiconductor, telecom, travel and logistics.

Milestones achieved

  • 2008- Revenue of Satyam crosses US $ 2-billion mark.
  • 2007- Satyam becomes the Official IT Services Provider for the FIFA World Cups, 2010 (South Africa) and 2014 (Brazil).
  • 2005- Company start operation of its largest global development center outside India (in Melbourne) .
  • 2002- Satyam launches its BPO in Hyderabad.
  • 2001- Satyam becomes world’s first ISO 9001:2000 company to be certified by BVQI
  • 2001- Satyam gets listed at NASDAQ
  • 2000- Satyam receives National HRD award from Indian government

Satyam has it  Strategic alliance with technology vendors & system integrators, namely Adobe , SAP, Microsoft, IBM, oracle  &  many more which enables the  company to deliver end-to end services.

Satyam financial performance has been performing consistently, even in the global turmoil it has given its good financial results. It is delivering an average revenue of 8 % and  profit of 9 % quarterly.

Recent developments

Satyam has acquired S & V management consultants, Bridge strategy group LLC & Caterpillar this year, this acquisition is expected to add value to companies'  existing services and in the creation of  new client base in future.

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

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