Patni Computer Systems Ltd Stock Analysis

BSE: 532517 | NSE: PATNI | IT - Software | Mid Cap

BSE Share Price
Not Listed

DeciZen - Make an Informed Decision on Patni Computer Sys.

Overall Rating

2. Valuation

Undervalued
P/E P/S EV/EBITDA

3. Price Trend

10 Year X-Ray:

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

Value Creation Index Colour Code Guide
Dec'02Dec'03Dec'04Dec'05Dec'06Dec'07Dec'08Dec'09Dec'10Dec'11TTM
ROCE % 23.4%20.6%21.5%11.8%9.7%13%16.8%19.1%17.9%14.3%-

Growth Parameters

Growth Parameters Colour Code Guide
Sales 4485377028769981,1721,5411,7351,8912,1522,175
YoY Gr. Rt. %-19.8%30.7%24.7%14%17.4%31.5%12.6%9%13.8%-
Adj EPS 14.514.318.914.414.52232.942.141.933.535.2
YoY Gr. Rt. %--1.7%32.1%-24%0.8%52%49.7%27.8%-0.4%-20.1%-
BVPS (₹) 62.575.9107.3148.1159.7184196.8247.2223.9250.3259.1
Adj Net Profit 162159236198200306422543551451477
Cash Flow from Ops. 20311665.3331243420478617554265-
Debt/CF from Ops. 0000000000-

CAGR

CAGR Colour Code Guide
9 Years 5 Years 3 Years 1 Years
Sales 19%16.6%11.8%13.8%
Adj EPS 9.7%18.3%0.6%-20.1%
BVPS 16.79.48.311.8
Share Price - - - -

Key Financial Parameters

Performance Ratio Colour Code Guide
Dec'02Dec'03Dec'04Dec'05Dec'06Dec'07Dec'08Dec'09Dec'10Dec'11TTM
Return on Equity % 23.320.621.611.79.412.816.61917.914.213.8
Op. Profit Mgn % 48.640.241.933.73430.131.635.231.625.927.3
Net Profit Mgn % 36.229.733.622.620.126.127.431.329.120.922
Debt to Equity 0000000000-
Working Cap Days 02282662562482452011781842020
Cash Conv. Cycle 01802071851661471128764670

Recent Performance Summary

No data to display

Return on Equity has declined versus last 3 years average to %

Sales growth has been subdued in last 3 years %

Net Profit has been subdued in last 3 years %

Sales growth is not so good in last 4 quarters at %

Latest Financials - Patni Computer Systems Ltd.

Standalone Consolidated
TTM EPS (₹) 35.2 29.6
TTM Sales (₹ Cr.) 2,175 3,568
BVPS (₹.) 259.1 271.6
Reserves (₹ Cr.) 3,492 3,662
P/BV 1.99 1.90
PE 14.67 17.45
From the Market
52 Week Low / High (₹) 514.10 / 518.00
All Time Low / High (₹) 94.00 / 624.00
Market Cap (₹ Cr.) 7,005
Equity (₹ Cr.) 27.2
Face Value (₹) 2
Industry PE 41.6

Management X-Ray:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About Patni Computer Systems Ltd

Established in February 10,1978, Patni Computer Systems is one of the leading global providers of information technology services and business solutions in the country. The IT major has serviced more than 400 Fortune 1,000 companies for over two decades. It has more than 14,500 professional service clients across diverse industries, from 27 sales offices across the Americas, Europe and Asia-Pacific, and 22 Global Delivery Centers in strategic locations across the world.

The company, having various offshore development centers, was the first to develop Follow the Sun development and support frameworks. It also announced the portfolio of Enablement Services to help independent software vendors (ISVs) make the transition to Software as a Service (SaaS) platform.

In 2004, it came out with Initial Public Offering (IPO) of 18,724,000 equity shares in the price of Rs 230 per share for a face value of Rs 2 each.

Patni has people-centric policies to establish a friendly and caring working environment and provides its employees with the opportunity to carve their career path. It has a well-defined award and recognition ceremony in place to appreciate the efforts taken by its employees.

Besides it also offers group medi claim policy, personal accident insurance and life cover insurance and also conducts regular health check-ups for all employees above the age of 35.

It is also an ISO 9001:2000 certified organization; assessed enterprise-wide at SEI-CMMI Level 5 (V1.2), SEI-CMM Level 5 and P-CMM Level 3. It has also integrated the Six Sigma techniques to focus on continuous, measurable process improvement, with powerful analytical tools and sophisticated review processes.

Services offered:

Patni offers end-to-end, high-quality, cost-effective and business-focused Product Engineering Services for industry domains like:

  • Automotive
  • Consumer Electronics
  • Industrial Automation
  • Storage, Networks and Computing
  • Medical Electronics
  • Mobile and Wireless
  • Office Automation
  • Semiconductors

Group Company:

In 1981, the company promoted PCS Data Products (PCSDP) for the sale and marketing of computer equipment and hardware maintenance as the company’s original activities included time rental, resale of imported computer hardware, and software exports.

In 1987, the company promoted PCS Data General India (PCSDG), a joint venture with The Data General Corporation, USA, for the manufacture and maintenance of computer hardware.

In 1994, PCSDP’s name was changed to PCS Industries (PCSIL) and PCSDG was merged into PCSIL. Since then, the company has been entirely focusing on software exports.

However in 1999, the shares of PCSIL held by the company and other non-operating assets were de-merged into other group companies and the company emerged as a focused IT services company

Now Patni Computer Systems is a separate entity from PCS Industries, which is a group company.

Milestones Achieved:

2004 - Assessed at Level 5 of the Capability Maturity Model Integration (CMMI SE/SW version 1.1) for all its development centers in Mumbai and Navi Mumbai after a rigorous month-long SCAMPI assessment by KPMG, India

Also, inks memorandum of understanding (MoU) with the Birla Institute of Technology and Science [BITS], Pilani to offer educational programs to Patni employees through the 'BITS off-campus Distance Learning and Collaborative Program' scheme.

2005 - Wins awards for excellence in corporate performance.

      - appoints Loek Van Den Boog as director

      - launches Defined BPO Service for Insurance Carriers

      - launches Life New Business STP solution.

Awards/ Recognitions:

  • Patni’s iCAP Solution for Life Sciences certified as powered by SAP NetWeaver,
  • Ranked as the No.1 Green Innovative IT Vendor by Black Book of Outsourcing,
  • Ranked among Top 10 best performers in IT Services and IT Infrastructure Services,
  • Achieves Global Certification by SAP for Application Management Services,
  • Conferred the Golden Peacock National Training Award-2007 by the Institute of Directors,
  • Patni Named Weyerhaeuser’s 2009 ‘IT Supplier of the Year’.
  • In 2009 Patni Computer Systems receives 'IT supplier of the year' award
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