Why is Southern Infosys Ltd ?
1
Weak Long Term Fundamental Strength with a -5.67% CAGR growth in Net Sales over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -0.07
- The company has been able to generate a Return on Equity (avg) of 2.76% signifying low profitability per unit of shareholders funds
2
With ROE of 5.2, it has a Expensive valuation with a 2.2 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 47.69%, its profits have risen by 36% ; the PEG ratio of the company is 0
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Software )
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Southern Infosys for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Southern Infosys
47.69%
0.75
63.89%
SENSEX
0.45%
0.03
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
-5.67%
EBIT Growth (5y)
8.30%
EBIT to Interest (avg)
-0.07
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
2.93
Tax Ratio
38.89%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.78%
ROCE (avg)
-2.43%
ROE (avg)
2.76%
Valuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
26
Price to Book Value
2.17
EV to EBIT
12.26
EV to EBITDA
12.26
EV to Capital Employed
2.23
EV to Sales
0.74
PEG Ratio
0.01
Dividend Yield
NA
ROCE (Latest)
1.46%
ROE (Latest)
5.19%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Bullish
Technical Movement
8What is working for the Company
NET SALES(Q)
At Rs 6.10 cr has Grown at 189.4 %
ROCE(HY)
Highest at 5.54 %
PBDIT(Q)
Highest at Rs 0.21 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 3.44%
PBT LESS OI(Q)
Highest at Rs 0.18 cr.
-2What is not working for the Company
NET SALES(9M)
At Rs 8.04 cr has Grown at -20.63 %
Loading Valuation Snapshot...
Here's what is working for Southern Infosys
Net Sales - Quarterly
At Rs 6.10 cr has Grown at 189.4 %
over average Net Sales of the previous four quarters of Rs 2.11 CrMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 0.21 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 3.44%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 0.18 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)