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Pentasoft Technologies Ltd Stock Analysis

Small Cap
Evaluated by 0 users | BSE: 531492 | NSE: PENTACOMMU |
IT - Software
Pentasoft Technologies was incorporated in the year 1995.It was formerly known as `Pentafour Communications'. It is a Chennai - based software solutions provider Pentsoft is a global provider of information technology services based in India. The company provide their clients with  a...

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'99Mar'00Mar'01Mar'02Mar'03Mar'04Mar'05Mar'06Mar'07Mar'08
Return on Capital Employed 33.51%16.28%11.99%5.42%1.46%1.32%0.35%0.19%0.19%0.26%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 69.940458337121810155.916.19.48.5
Y-o-Y Gr. Rt.-478.3%44.3%-36.4%-41.2%-53.8%-44.6%-71.1%-41.5%-10.4%
Adjusted EPS (Rs.) 14.5137.6254.313.321.440.510.150.040.040.04
Y-o-Y Gr. Rt.-159.3%44.3%-75.5%-89.2%-64.6%-70.6%-73.3%0%0%
Book Value per Share (Rs.) 74.28432.1485.82286.82181.8262.6214.0414.0814.4512.48
Adjusted Net Profit 14.181.711852.98.5102.90.70.70.9
Net Op. Cash Flow (Rs. Cr.) 16.7-122-5392-10-83.6-29.5-3.91128.2
Debt to Cash Flow from Ops 0.31-0.04-1.191.02-10.3-0.91-4.75-36.420.688.7
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.
Pentasoft Technologies Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -20.9%-47.8%-46.7%-10.4%
Adjusted EPS -48.1%-51.2%-35.6%0
Book Value per Share -18-41.5-3.9-13.6
Share Price - - - -
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'99Mar'00Mar'01Mar'02Mar'03Mar'04Mar'05Mar'06Mar'07Mar'08
Return on Equity (%) 32.9516.1711.834.820.770.870.390.270.260.33
Operating Profit Margin (%) 35.330.0930.2941.641.8229.613.3815.097.8621.37
Net Profit Margin (%) 20.1820.2120.2114.263.919.915.264.537.6910.22
Debt to Equity 0.070.010.060.080.10.060.510.510.270.29
Working Capital Days 99951592674351,2951,9614,0744,6021,864
Cash Conversion Cycle 6743481492856849111,4891,623810
Entity Percentage Holding
Promoters 2.07%
Institutions 1.92%
Non-Institutions 96.01%
Pledged *0.000.000.000.000.000.000.000.000.0099.99
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

Data is not available for this company.

Data is not available for this company

Pentasoft Technologies was incorporated in the year 1995.It was formerly known as `Pentafour Communications'. It is a Chennai - based software solutions provider Pentsoft is a global provider of information technology services based in India. The company provide their clients with  a broad range of services through the Enterprise and Education Divisions. The company is more than 10 years old and has its presence in India and Europe. 

The Enterprise Division of the company

Pentasoft Technologies was incorporated in the year 1995.It was formerly known as `Pentafour Communications'. It is a Chennai - based software solutions provider Pentsoft is a global provider of information technology services based in India. The company provide their clients with  a broad range of services through the Enterprise and Education Divisions. The company is more than 10 years old and has its presence in India and Europe. 

The Enterprise Division of the company includes Business Software Applications which offers a wide array of information technology services including application development, migration and maintenance, Internet and e-commerce services, both in the domestic and international markets. They  specialize in offering services to what they believe are high growth industries such as the financial services, insurance, manufacturing, logistics, telecommunications and health care sectors. They also sell exclusive library of reusable software components to small and medium enterprises desiring cost-effective services.

The Engineering Services division provides engineering software consulting services and product design in the areas of computer aided design (CAD), computer aided manufacturing (CAM), computer aided engineering (CAE), geographic information systems (GIS), electronic data management (EDM), architectural design services, interactive media and electronic and embedded systems. Its CAD/CAM/CAE services are primarily targeted towards the automotive, aerospace, and heavy engineering industries.

The Education & Training Division oversees the education and computer software training courses that is  offered through their domestic and international network of owned and franchised ‘‘Pent soft Center of Excellence’’. They have launched a new brand in Education and Training namely “PENTA MAGIC”, which opens up more training syllabi in Animation, Multimedia and special effects.

Products & Services offered:-

  • PHMS which means Integrated Hospital Management System
  • ALM(Asset Liability Management) 2.0 
  • Anywhere Branch Banking 1.0
  • CMS 1.0
  • CodeTrax 3.0
  • CuHelp 1.0
  • Design for Manufacture and Assembly 9.0
  • E'Bank 1.0, E'Delivery 1.0 , E'Pass 1.0 , E'Payments 1.0 , E'Probe 1.0 , E'Remittance 1.0 , E'Shift 1.0 , E'Switch 1.0 , E'Trade 1.0
  • Electronic Clearing Office 1.0
  • FAMS(Fixed Assets Management System) 1.0
  •  HO Banking 1.0
  • Innsoft 1.0
  • Insupro (Indian Version) 5.0
  • LMS 1.0
  • NRI - Banking 1.0
  • OnCall 1.0
  • Penta Takaful General 1.0,etc.

Its subsidaries:-

  • Pentasoft Software(UK) ltd
  • Pentasoft Singapore Pte ltd
  • Pentafour Software Solutions,INC,USA
  • Esoftcom (Maritius) Ltd.

Milestones:

For the Year 1995:-

 The Company was incorporated on 5th April 1995 as a Public Limited Company.  The certificate dated 2nd May, for Commencement of Business was obtained.  Pentafour Communications Limited is promoted by Mr. V.Ramakrishnan and his associates and the Companies of Pentafour Group promoted by the same associates.

 For the year 1997:-

  - The company also has a tie-up with Divicom of the US for the Supply of satellite uplink equipment and set top boxes.  The company has a tie-up with John Brown Associates (JBA) to distribute its ERP Solution Systems 21 in India.  The company has a tie-up with Prodart, US, who supply the hardware.

-The Chennai-based company signed a agreement with Simoco International Group to offer Simoco products as a part of its solutions.

- To part finance the above activities, PCL came out with a public issue of 12.75 lakh shares of Rs. 10 each aggregating Rs. 1.27crores during December 15, 1995.

- PCL also develops communications software.  It has developed voicecommunication software for NEC Corporation of Japan, which enables voice communication between PCs, which are a part of a Local Area Network (LAN).

For the year 1998:-

Penta four Communications, engaged in the business of computereducation, hardware sales, services and software development including internet and communication related activities, has reported Impressive results in the 12 months ended 31st March.

- The company has a tie-up with Siemens for switching and video conferencing, Simoco for wireless equipment, Comsat Max for VSAT and AT& T for structured cabling.  On the education side, it has a tie-up with Pro Engineering and Auto Desk.

- PCI has entered into a business partnership agreement with GulfBusiness machines, Dubai and Saudi Business machines for software development and projects.  PCL has also teamed up with Jeraisy group,Saudi Arabia, and Hi-Tech, Beharin, for projects and consultancy.  It is opening an office in Detroit, USA, before September end for carrying out consultancy and projects in the country.

- The company has state of the art infrastructure - five mainframes (S/390) and several client servers and PCs to back up their training division.

- Pentafour Communication Limited (PCL) is traditionally a system integration company.  However there is refocusing of strategic business activities and though system integration will still play an important role, it is training and CAD/CAM/CAE which will see faster growth in the coming years.

- PCL has set up offices in Singapore and Malaysia and is expecting to open two more in the US- one in Atlanta for training on IBM Streamsand Process Controls and the other in Detroit for CAD/CAM/CAE and GIS.

 For the year 1999:-

-When Chennai-based Pentafour Communications Ltd (PCL) lost its bidfor basic telephony services for Tamil Nadu circle after having tied up with Alcatel and Deutsche Telecom it turned out be a blessing in disguise.

For the year 2000:-

-Pentafour Communications Ltd has changed its name to Pentasoft Technologies Ltd. According to the statement, the name change is to reflect the acquisition of the software division of erstwhile Pentafour Software & Exports Ltd. 

 - The company has formed a joint venture with Acumen of Botswana tomeet demands of the African continent.  The venture is particularly looking at projects in governments. 

 - It has also signed a software provider agreement with Hewlett.

  - India's Pentasoft Technologies Ltd (PTL) has tied up with Israeli company, Smart Solutions Inc, for marketing and implementing its Product Data Management (PDM) solution SmarTeam in India.  

- It has also tied up with the Export Promotion Zone Development Authority (EPZDA), Mauritius, to provide IT solutions to existing clients of the authority.

  - 3CRC Technologies, the engineering and interactive software divisionof Pentasoft Technologies Ltd., has launched a training programme in the area of computer aided design, computer aided manufacturing,computer aided engineering.

  - Pentasoft Technologies Ltd. launched its integrated hospital management software, `Care+Cure', in Kerala. 

 - The Company has launched a joint venture firm, 3B Soft, fordeveloping and marketing Internet-based enterprise solutions products.  

- Chennai-based Pentasoft Technologies Ltd. has floated a jointventure with the Abu Dhabi based Alpha Data, one of UAE's largest computer &communication companies and part of the diversified Bin Hamoodah Group.  - 3CRC, the Engineering and Interactive Division of the company, has opened a development and marketing office in Bangalore.

  - Pentasoft Technologies has been awarded SEI - CMM Level 4 Certification by KPMC Consultancy, pentasoft is one of the 30 companies in India to be assessed for Level 4. 

 - The Company has opened two new educational centres at Gandhipuram and Pelamedu in Coimbatore.  - The Company entered into a strategic alliance with M/s. ComputerAssociates Inc. USA on a joint venture basis and floated a new company namely M/s. Simply soft Technologies Pvt. Limited with its Headquartersat Bangalore. 

 - The Company has entered into a partnership agreement with Nettur Technical Training Foundation, Bangalore to provide a high-end  technical services programme in tool design/mould design areas. 

 - The Company has entered into a partnership agreement with Nettur  Technical Training Foundation, Bangalore to provide a high-end technical services programme in tool design/mould design areas.

  - Pentasoft, which has a computer training centre in Guwahati  launched its new Web management course.  It also offers IBM e-business,e-commerce, computer programming and short term modular courses.  - Chennai-based Pentasoft Technologies has launched its productsthrough application service provider model for clients to access across the globe. 

 - Chennai-based Pentasoft Technologies has entered into an agreement with ECnet, Singapore for providing supply chain management solutions. 

 - Pentasoft Technologies Limited has entered into an agreement toprovide ERP solutions for the Jaipuria Group, one of the largest franchisees of Pepsi and one of the major soft drink manufacturers and distributors in India. 

 - The Company has tied-up with Mt.Sierra College, SouthernCalifornia  for offering the Distance Learning, Foreign recruitment and Structured Wiring and other courses through the net.  Pentasoft has formed the International Learning Services (ILS) division to focus on theInternational market, currently operational from Singapore,Malaysia, Bangladesh and Srilanka.

For the year 2001:-

- The Company has entered into an agreement with Lotus Development International Corporation to offer Lotus authorised courses.    

 - Pentasoft Technologies Ltd has signed an agreement with the MacauUniversity of Science and Technology, China, to provide IT training tomainstream students in and around Taiwan, Hong Kong and Mainland China and to undertake projects related to research and development in information technology.

  - Pentamedia Technologies has entered into an agreement with the MacauUniversity of Science and Technology, China with a two-pronged objective of providing IT training to mainstream students in and Around Taiwan, Hong Kong, Korea and Mainland China and undertaking projects related to Research and Development in Information Technology, according to the BSSE India website. 

 - The Company has entered into an agreement Credence analytics, anInvestment Technology solution provider to provide i-Deal a fullyintegrated front, middle and Back office Treasury Management system.

  - Software services and training firm Pentasoft Technologies said itwas restructuring operations by cutting low-productivity jobs and switching most employees to a variable wage to beat the slowdown.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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