Cigniti Technologies Ltd Stock Analysis

BSE: 534758 | NSE: CIGNITITEC | IT - Software | Small Cap

BSE Share Price Jan 20, 18:01
558.55 0.55 (0.10%)

DeciZen - Make an Informed Decision on Cigniti Technologies

Overall Rating

1. Quality

2. Valuation

Fair
P/E P/S EV/EBITDA

3. Price Trend

Semi Strong

FAQ's

1. Is Cigniti Technologies Ltd a good quality company?

Data is not available for this company.

2. Is Cigniti Technologies Ltd undervalued or overvalued?

The key valuation ratios of Cigniti Technologies Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Cigniti Technologies Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Cigniti Technologies Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Cigniti Technologies:

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
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 2%2.8%10.9%2.3%11.8%-19.7%14.4%24.1%22.2%16.4%-
Value Creation Index -0.9-0.8-0.2-0.8-0.2-2.40.00.70.60.2-

Growth Parameters

Growth Parameters Colour Code Guide
Sales 10.223.655.5114204275244261300311373
YoY Gr. Rt. %-130.2%135.6%105.9%78.9%34.5%-11.4%7%15.1%3.6%-
Adj EPS 0.20.63.81.312.6-20.49.220.121.118.715.2
YoY Gr. Rt. %-210%517.7%-65%839.6%-261.8%NA118.8%5%-11.4%-
BVPS (₹) 22.127.242.581.5104.635.85683103.6124.6128.9
Adj Net Profit 0.31.283.332.1-5425.155.758.852.542
Cash Flow from Ops. 0.5-7.310.4-20.4112-29.413.799.59361.5-
Debt/CF from Ops. 4.9-0.10.3-0.60.2-2.14.30.10.10.3-

CAGR

CAGR Colour Code Guide
9 Years 5 Years 3 Years 1 Years
Sales 46.1%8.8%8.5%3.6%
Adj EPS 65.6%8.3%26.7%-11.4%
BVPS 21.23.630.520.3
Share Price 27.7% 3.7% 14.9% 33.2%

Key Financial Parameters

Performance Ratio Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 1.32.611.1212.1-25.116.627.122.116.312
Op. Profit Mgn % 16.913.724.57.925.58.214.816.919.719.513.5
Net Profit Mgn % 3.3514.32.915.7-19.610.321.419.616.911.4
Debt to Equity 0.1000.10.10.70.40.10.10.10
Working Cap Days 304251217252312262269249181165264
Cash Conv. Cycle 8988887511611741609377213

Recent Performance Summary

Net Profit is growing at healthy rate in last 3 years 26.72%

Sales growth is good in last 4 quarters at 24.11%

Return on Equity has declined versus last 3 years average to 12.00%

Sales growth has been subdued in last 3 years 8.47%

Latest Financials - Cigniti Technologies Ltd.

Standalone Consolidated
TTM EPS (₹) 15.2 33.4
TTM Sales (₹ Cr.) 373 1,029
BVPS (₹.) 128.9 146.3
Reserves (₹ Cr.) 334 382
P/BV 4.33 3.82
PE 36.87 16.74
From the Market
52 Week Low / High (₹) 310.60 / 677.00
All Time Low / High (₹) 4.47 / 677.00
Market Cap (₹ Cr.) 1,567
Equity (₹ Cr.) 28.1
Face Value (₹) 10
Industry PE 39.5

Management X-Ray of Cigniti Technologies :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.0012.9412.8518.55
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About Cigniti Technologies Ltd

Chakkilam Infotech, co-founded by Subramanyam in 1999, is based in Hyderabad with subsidiaries in the US and UK, it offers mature testing processes and methodologies that help ISVs and Enterprise IT organizations to achieve predictable, improved product quality levels, while reducing the time and cost associated with testing.

Chakkilam Infotech is a recognized pioneer in medical transcription in Hyderabad and the HIPAA compliance product developed by Chakkilam was a pioneering effort to build software products in India. The company went public in 2004.

The delivery presence of the company spans Hyderabad, Bangalore and UK. It has more than 16,000 square feet of modern facilities. The main delivery center in Hyderabad is located in the central business district of Hyderabad to offer easy access to all our employees.

It offers a secure and easily configurable development and testing environment that we can customize for a client with specific needs to create a dedicated center. If you need to build a team separated from others with special access control, network control and themes that reflect the principal's office, we can setup a dedicated center within our facilities for teams starting from 10 to 50 resources.

Their people, process and technology show the deep understanding of software testing and its complementary role to development. Their extended Distributed Delivery (XDD) leverages tier-2 cities in India to deliver superior cost savings without sacrificing quality.

Chakkilam also offers teams of experienced test engineers, domain experts, and custom-built tools and frameworks to meet industry-specific testing requirements.

Their testers work collaboratively and yet independently to check, escalate and verify quality. Even as they work 'with' your teams, they will challenge the developers to build better quality. Their testers are technically and mentally trained to deliver.

They can design, develop and execute Functional Tests, Regression Tests, Test Automation, Performance Testing, Usability Testing (especially for compliance), Browser Compatibility Tests and Acceptance Tests.

They have competency in HP Quick Test Professional , Silk, LoadRunner, Quality Center and Open Source tools like Selenium, QATrack, OpenSTA, etc.

Services offered by the company:

  • eXtended Distributed Delivery- Its  XDD (eXtended Distributed Delivery) is a key differentiator to help the clients get to the next level of cost reduction and predictability.
  • Engagement Process- The engagement manager works onsite or offshore in a consultative mode to help the teams to get the best out of the engagement. Chakkilam engages with clients using different models.
  • Agile Processes- Chakkilam understands the need for aligning testing and development processes for fast changing user needs and requirements.
  • They have built a strong independent software quality management, quality assurance and testing services company. Their cTEST methodology combined with XDD delivery network cuts testing costs by 60% while improving testing effectiveness.
  • Chakkilam has worked with enterprises in the healthcare domain to offer transcription and billing solutions for hospitals and doctors.
  • Chakkilam has delivered engineering services in CAD (Computer Aided Design) and GIS (Geographical Information Systems) to enterprises.

Recent development

On June1, 2009 Chakkilam Infotech announced the start of its European operations led by Mark Ferguson based in Glasgow, Scotland.

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