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Avance Technologies Ltd. Stock Analysis

Small Cap
Evaluated by 185 users | BSE: 512149 | NSE: |
IT - Software
Avance Technologies, previously known as VMC Software, is a software company incorporated in January 1985, it went public in 1991.The company started by providing global technology management services in Product Testing, Technical Communications, Management Consulting, IT Integrations &...

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 0.24%0.07%2.08%-0.08%-0.17%-0.06%-0.07%0.05%0.01%0.1%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 72.817615612888.610710289.929.23.4
Y-o-Y Gr. Rt.-142.4%-11.7%-17.9%-30.8%20.3%-4.6%-11.5%-67.5%-88.4%
Adjusted EPS (Rs.) 0.040.020.98-0.05-0.1-0.01-0.010.0100.03
Y-o-Y Gr. Rt.--50%4800%-105.1%NANANANA-100%NA
Book Value per Share (Rs.) 25.6725.6825.529.7929.2619.5519.519.5119.5119.54
Adjusted Net Profit 0.20.16.3-0.3-0.7-0.2-0.30.200.6
Net Op. Cash Flow (Rs. Cr.) -111107-224-122-0.515.727.720.2042.7
Debt to Cash Flow from Ops -0.020-0.04-0.02-427.5700051,739.453.42
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.
Avance Technologies Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -28.9%-47.9%-67.8%-88.4%
Adjusted EPS -3.2%NANANA
Book Value per Share -3-7.80.10.2
Share Price -27.5% -20% -31.9% 157.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 0.240.072.03-0.08-0.22-0.08-0.070.0500.14
Operating Profit Margin (%) 0.43-0.08-0.41-0.580.03-0.11-0.030.220.02-3.38
Net Profit Margin (%) 0.320.074.03-0.26-0.73-0.2-0.260.230.0116.39
Debt to Equity 0.0100.050.011.070000.390.38
Working Capital Days 5532785301,0321,4149588668613,48634,274
Cash Conversion Cycle 36910193-143-149-123-120-416-3,039
Entity Percentage Holding
Promoters 0.88%
Non-Institutions 99.12%
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 Avance Technology's performance infers:

Avance Technology earnings have grown by 0%, whereas share price has depreciated -20% 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 Avance Technology share prices over the last 10 years. Here is what we found out:

Avance Technology share price has depreciated -41.6% annually over the past ten years.

Avance Technologies, previously known as VMC Software, is a software company incorporated in January 1985, it went public in 1991.

The company started by providing global technology management services in Product Testing, Technical Communications, Management Consulting, IT Integrations & Implementations, IT Service Management, Help Desk, Technical Support, Outbound Sales and Marketing, and Channel Support.

Avance’s founders have more than 20 years experience in key aspects of

Avance Technologies, previously known as VMC Software, is a software company incorporated in January 1985, it went public in 1991.

The company started by providing global technology management services in Product Testing, Technical Communications, Management Consulting, IT Integrations & Implementations, IT Service Management, Help Desk, Technical Support, Outbound Sales and Marketing, and Channel Support.

Avance’s founders have more than 20 years experience in key aspects of development, implementation, and marketing of software solutions.Their professional experience include industry leaders such as LSI Logic, PeopleSoft (now Oracle), i2 Technologies.Their implementation experience include global leaders such as Northrop Grumman Corp., Hewlett-Packard, and Samsung. Avance Technology is building the next generation trading software that is scalable for performance and tolerant against system crashes.

Currently they have focused on connecting to Hong Kong Stock Exchange's AMS/3 system. There state-of-the-art clustering technology enables the company to sustain high availability and scalability while there proprietary multi-thread user interface technology enables them to build the most responsive user interface ever provided by a trading platform.

Products of the company include

Avance TradeServer - Avance TradeServer is a Broker Supplied System (BSS) compliant with HKEx's AMS/3 protocol. Its function is to route orders to HKEx's trading system. It has built in failover and clustering design such that multiple Open Gateways can be used for redundancy and real time failover.

Avance TradeStation - Avance TradeStation is a thick client designed for brokers and dealers to enter orders with credit management. Its state-of-the-art technologies are platform independent employing multi-thread design to enhance response time for the best user experience.

Avance TradePortal- Avance TradePortal is a thin client built with web 2.0 technologies for the best user interaction experience over the Internet. The targeted user are the Internet users who wants fast action to trade anywhere in the world over the Internet.

Avance Technologies, in 2008, set up its India development center in Hyderabad. The advantage of having a development center in India was that it can tap into the talent pools of India in the fields of Information Technology. The close proximity and small time difference of India from Hong Kong is also a factor in choosing Hyderabad as the location for this center.

The  members of the company in India are seasoned engineers with expertise in the technologies that Avance uses. Together with its team in Silicon Valley, California, this development center will help Avance Technologies accelerate product development cycles. The diversified teams can also help Avance remain at the forefront of technology by knowledge transfer.

Avance Technologies established it’s headquarters in Hong Kong. Given the enormous growth potential of China and Hong Kong’s leading position as a major financial center in Asia, the choice of Hong Kong as headquarter was an obvious one. After assessing the technology landscape of Hong Kong, the founders of Avance believed that there are opportunities and needs to introduce the latest generation of technologies into Hong Kong's information technology landscape.Since information technology is indispensible for the financial industry, it was hoped that by introducing the latest and greatest technologies that have been proven elsewhere into Hong Kong, Avance Technologies can help to sustain and solidify Hong Kong's position as one of the leading financial

Future plan

Avance Technologies is building the next generation trading software that is scalable for performance and tolerant against system crashes.

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

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