WEP Solutions Ltd Stock Analysis

BSE: 532373 | NSE: | IT - Software | Small Cap

BSE Share Price Jan 17, 18:01
33.50 1.55 (4.85%)

DeciZen - Make an Informed Decision on WEP Solutions

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity

1. Quality

2. Valuation

Somewhat overvalued
P/E P/S EV/EBITDA

3. Price Trend

Semi Strong

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
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 2%12.8%10.9%7.5%6.3%4.4%4.2%1.3%1.9%1.3%-
Value Creation Index -0.9-0.1-0.2-0.5-0.6-0.7-0.7-0.9-0.9-0.9-

Growth Parameters

Growth Parameters Colour Code Guide
Sales 37.215211610488.977.679.273.965.762.285
YoY Gr. Rt. %-308.6%-23.6%-10.3%-14.7%-12.7%2.1%-6.7%-11.2%-5.2%-
Adj EPS -0.41.61.10.70.50.40.5-00.1-0.10.8
YoY Gr. Rt. %-NA-30%-37.5%-27.1%-25.5%26.3%-102.1%NA-242.9%-
BVPS (₹) 12.713.511.110.811.21414.415.615.718.616.8
Adj Net Profit -0.52.23.11.91.41.11.400.2-0.33
Cash Flow from Ops. 2.714.617.310.11114.39.49.19.68.8-
Debt/CF from Ops. 40.70.71.11.10.30.811.21.5-

CAGR

CAGR Colour Code Guide
9 Years 5 Years 3 Years 1 Years
Sales 5.9%-6.9%-7.7%-5.2%
Adj EPS NA-172.2%-159.3%-242.9%
BVPS 4.310.68.818.2
Share Price 11.4% -3.4% 16.8% 67.8%

Key Financial Parameters

Performance Ratio Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % -2.79.210.26.44.73.13.3-0.10.5-0.54.4
Op. Profit Mgn % 20.4910.81010.812.514.714.820.418.616.6
Net Profit Mgn % -1.31.42.71.91.61.51.8-0.10.4-0.43.3
Debt to Equity 0.70.60.40.40.40.10.20.20.20.30.1
Working Cap Days 233107170155177169144151182214154
Cash Conv. Cycle 1244673737062608310912095

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 4.30%

Sales growth is good in last 4 quarters at 69.71%

Sales growth has been subdued in last 3 years -7.74%

Net Profit has been subdued in last 3 years -159.28%

Latest Financials - WEP Solutions Ltd.

Standalone Consolidated
TTM EPS (₹) 0.8 0.7
TTM Sales (₹ Cr.) 84.8 87.1
BVPS (₹.) 16.8 14.2
Reserves (₹ Cr.) 25 15
P/BV 1.99 2.36
PE 43.65 50.03
From the Market
52 Week Low / High (₹) 14.00 / 35.15
All Time Low / High (₹) 1.29 / 53.36
Market Cap (₹ Cr.) 121
Equity (₹ Cr.) 36.2
Face Value (₹) 10
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 WEP Solutions Ltd

Datanet Systems incepted in 1995 has committed itself to product innovation right from its inception. In fact R&D based state of art product design & development has been an uncompromising passion for Datanet. Datanet specialises in the design and development of Workflow/BPM Software, Multi-application Smart Cards, Smart Card based ATMs and Banking Application. Datanet has been doing intensive & continuing R&D in core areas of

  • Workflow automation platform for complex business processes and
  • Multi application smart card solutions with special focus on financial applications.

As a result, Datanet has developed & deployed a wide range of solutions, particularly in the banking sector. Datanet products are installed in about 8000 sites distributed across the length & breadth of India.

In developing these complete solutions, Datanet has also acquired expertise in the design, deployment & usage of many related platforms & technologies such as Microsoft platforms, banking business processes, WANs, Smart card terminals, Internet based applications, PKI security, Web Services, automated teller machines, ASP model managed services, turn-key project handling, etc.

Products and services offered by the company:

Product:

  • WorkFlow Based
  • Cash Management System
  • Electronic Funds Transfer
  • Any Branch Banking
  • Telebanking
  • BankFlow
  • Sanchaya

Smart card Based

  • e-Smart Card
  • e-Smart Combo

Services

  • Internet & Mobile Banking
  • Strong Web Authentication
  • e-Cash Download & Settlement

Milestone

  • 1995:  Company started
  • 1996  Signed up with M/s Federal Bank for joint development of TBA software using BPRO.
  • 1997:  Obtained first order from Department of Posts for supply of software for banking transactions; Order from NIC for wireless MAN;
  • 1998:  Order from M/s Vysya Bank for development of a customized ABB system
  • 1999:  Order from Bank Of Baroda for CMS system and ABB, Telebanking and PC Banking; Telebanker for Syndicate bank; Repeat order from DOP; Order from Sir. M. Visvesvaraya Co-op bank for computersing all branches with TBA.
  • 2000:  Datanet becomes a listed company; Repeat order from DOP; Repeat order from BOB for expansion of CMS and ABB, Telebanking & PC Banking.
  • 2001:  DeSL, a subsidiary of Datanet is started; Repeat order from DOP; Repeat order from BOB for expansion of CMS and ABB, Tele & PC Banking; Order for development of EFT software; Order for enhancing the BOB network with VSAT connection; Order from Dhanalakshmi Bank for supply of CMS, ABB, Tele & Internet banking software; Order from BASIX for development of smart card & workflow based micro-finance transactions system.
  • 2002:  Repeat order from DOP;
  • 2003:  Order for ASP model Internet & mobile banking from BOB; Installation & commissioning of EFT for BOB; Installation & commissioning of CashierAssist, a version of e-ATM at Karad Urban Co-op Bank; Order for 'Know Your PAN' service over Telephone or Internet from Income Tax department, Bangalore.
  • 2004:  Installation & commissioning of smart card & Windows PC based e-ATM at Sir M. Visvesvaraya Co-op Bank, Bangalore; Repeat order from BOB for expansion of Internet & mobile banking; Continuation Order from Dhanalakshmi Bank for expansion of CMS;
  • 2003-05:  Re-engineering the company towards building globally applicable core technology products.
  • 2005:  Pilot project from Sanghamithra, for developing a smart card & Simputer based solution for microfinance. Pilot project for building a secure & instant immigrants' money transfer system for export using Smart Card & Simputer. Enhancement of Bank Of Baroda's CMS & EFT software.
  • 2006:  Development of a Simputer & smart card solution for handling auctions at APMC yards.
  • 2007:  Repeat orders from DOP;
  • 2008:  (i) Repeat orders from DOP             (ii) Pilot Order for Customised iRemitHome from TCC, Ghana.  
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