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Archana Software Ltd Stock Analysis

Small Cap
Evaluated by 28 users | BSE: 530565 | NSE: SSLFINANCE |
IT - Software
Archana Software, incorporated in the year 1994 is a software development company. The registered office of the company is located at No 64, Shankaran Avenue, Valachery Main Road, Chennai. The company provides comprehensive and cost-effective solutions for e-Commerce, ERP and supply chain...

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'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 6.65%26.76%24.96%-0.24%0.72%0.93%-3.99%0.47%1.99%0.52%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 0.43.24.65.25.55.51.95.4330.9
Y-o-Y Gr. Rt.-734.2%45.7%12.6%5.2%0.4%-65%179.7%514.3%-97.4%
Adjusted EPS (Rs.) 0.160.780.95-0.010.030.04-0.170.020.080.02
Y-o-Y Gr. Rt.-387.5%21.8%-101.1%NA33.3%-525%NA300%-75%
Book Value per Share (Rs.) 2.553.344.294.284.314.354.184.24.294.31
Adjusted Net Profit 0.10.50.6000-0.100.10
Net Op. Cash Flow (Rs. Cr.) 00.100.1-0.100000
Debt to Cash Flow from Ops 0000000000
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.
Archana Software Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 9.6%-30.8%-23.2%-97.4%
Adjusted EPS -20.6%-7.8%NA-75%
Book Value per Share 6010.5
Share Price -1.9% -2.6% 1.3% 31.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 6.5126.6824.95-0.30.720.93-3.990.471.990.52
Operating Profit Margin (%) 31.915.8512.990.370.641.78-5.190.260.161.73
Net Profit Margin (%) 25.4915.0112.45-0.150.340.44-5.350.220.151.56
Debt to Equity 0000000000
Working Capital Days 1,709327442559704519570201521,982
Cash Conversion Cycle 828-11510413713012939615327986
Entity Percentage Holding
Promoters 21.61%
Non-Institutions 78.39%
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 Archana Software Ltd's performance infers:

Archana Software Ltd earnings have declined by -7.8%, whereas share price has depreciated -2.6% 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.

Data is not available for this company

Archana Software, incorporated in the year 1994 is a software development company. The registered office of the company is located at No 64, Shankaran Avenue, Valachery Main Road, Chennai. The company provides comprehensive and cost-effective solutions for e-Commerce, ERP and supply chain management. It has a well managed infrastructure and the latest equipments to match international standards and requirements. It uses technology like C, Java, ASP, COM, Perl, DCOM, Corba, XML, EJB, and

Archana Software, incorporated in the year 1994 is a software development company. The registered office of the company is located at No 64, Shankaran Avenue, Valachery Main Road, Chennai. The company provides comprehensive and cost-effective solutions for e-Commerce, ERP and supply chain management. It has a well managed infrastructure and the latest equipments to match international standards and requirements. It uses technology like C, Java, ASP, COM, Perl, DCOM, Corba, XML, EJB, and PL/SQL. The company also markets software packages and solutions and has exported products to Sri Lanka.

Service offering:

The company provides various software based IT enabled services to its clients:

  • Consultancy Services
  • Turnkey Projects
  • Joint Product Development
  • System Integration
  • Custom Software Development
  • Website Design & Development
  • Dedicated Offshore Team
  • Project Rescue

The Company is developing the software in the following areas;

  • Accounting with Inventory Management
  • Hotel Management
  • Pay Roll Management

Accounting With Inventory Management:

The Company shall focus in its inherent creative capabilities to build excellent quality ERP software for the Domestic Market. The horizons of the Indian ERP Software sector space is fast expanding and the use of Hi-end technology has brought new synergies to overall businesses perspective in the software arena.Nowadays ERP Software for accounting with inventory management are helpful because by making a single entry, both records for accounting and inventory are updated simultaneously. Thereby it's becoming more popular among retail and medium scale business peoples as it serves as an effective tool for cost control and cost reduction.The Company has identified the potential of the domestic market and intends to target the retail and medium scale business organization by explaining the features of the software. The company intends to use this huge demand.

Hotel Management:

In the service sector, the Company shall be developing high quality content for International Clients. India becoming one of most tourists' spots in the world and many foreigners are visiting India as tourist for knowing the different cultures, for visiting the heritage places in India and for taking better medical treatment considering cost and quality thereof. Hotel Industry in India is grasping this good opportunities and expanding their existing facilities including increasing the number of rooms and identifying and building new construction with international standard. The company has identified this and has been developing the software for hotel management in the area of billing, room booking, cancellation and various report for management purposes.

Pay Roll Management:

India is identified by the world as a good place for commencing the new business considering availability of man power at low cost and other, available resources in India. Further, Indian Government opens the market for FDI and Fll for developing the infrastructures facilities in India. They are commencing their business activities by forming either subsidiary Indian company or employing various Indian contractors for executing the work. In India, various labour laws have to be complied with while employing the labourers in India. In order to comply with the said laws and considering the number of labourers employed in the various industries, it is required to maintain the details of employees and labourers with their statutory and other deduction, for this they need payroll management.

In the Pay Roll Management arena, the company would be focusing on development of ERPsoftware for fulfilling their needs and other statutory compliances in India for labourersand employees,

Archana Software Knowledge center plans to provide training in the field of ERP softwareprogramming and development thereof. Archana with its creative pool of talent shall impartproduction-oriented training with the blend of the latest technology.

NASSCOM report mentions that the ERP Industry has the potential to generate approximately 20,000 jobs by 2010. However it also mentions that the number of professionals joining the industry will be lower than this figure. This scenario, they feel will be due to many factors such as lack of proper training institutes, lack ofproper trainers , awareness about the industry, accredited courses etc.

The inherent characteristic of this industry is the lack of skilled talent. Archana intends to bridge its resource gap by imparting high quality education in this field.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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