Detailed Analysis On CG-VAK Software & Exports Ltd

 

Market Cap : 183 Cr

Current Price (20-05-2024) : 363

Sector : IT - Software

BSE  : CGVAK

Website : cgvakindia.com

About :

CG-VAK Software and Exports Ltd was established as a Public Limited Company in December, 1994, with wide experience in the business of Information Technology. CG-VAK is a multi million-dollar public limited organization, with over two decades of time-tested experience for clients across the globe. It provides customized software solutions, pre-programmed application packages, re-engineering, consultancy professional services, multimedia and training. As a global software provider headquartered in India, the Company employs over 525+ professionals across the globe.

Financial Metrics :

(source : screener.in)

  • Market Cap : 183 Cr
  • Current Price : 363.00
  • High / Low : 715 / 320
  • Book Value : 117.00
  • EPS : 19.90
  • Promoter Holding : 53.87 %
  • Pledged Percentage : 0.00 %
  • P/E Ratio : 18.20 (Industry PE : 36.00)
  • PEG Ratio : 0.34
  • Operating Profit Margin : 18 %
  • Return on capital employed (ROCE) : 31.60 %
  • Return on equity (ROE) : 25.10 %
  • Return on assets (ROA) : 20.70 %
  • Sales Growth 5Yr : 20.70 %
  • Profit Growth 5Yr : 53.20 %
  • Dividend Last Year : 1.00
  • Dividend Yield : 0.28 %
  • Debt : 3.59 Cr
  • Debt to Equity : 0.06
  • Debtor Days FY23 : 51
  • Current Assets : 27.20 Cr
  • Current Liabilities : 3.94 Cr
  • Free Cash Flow : 10.40 Cr
  • Net Cash Flow : -3.84 Cr

Please refer to this article for detailed explanation on above mentioned financial metrics

Earnings :

(source : screener.in)

Quarterly


Yearly 

Good sales growth 
  • Over the last 5 years sales has grown at a yearly rate of  21 %
  • Over the last 3 years sales has grown at a yearly rate of  25 %
Good net profit growth
  • Over the last 5 years net profit has grown at a yearly rate of  53 %
  • Over the last 3 years net profit has grown at a yearly rate of  45 %
 Good return on equity
  • ROE last year  25 %
  • Over the last 5 years ROE has grown at a yearly rate of  23 %
  • Over the last 3 years ROE has grown at a yearly rate of  25 %
Good return on capital employed
  • ROCE last year  31.60 %
  • Over the last 5 years ROCE has grown at a yearly rate of  28.30 %
  • Over the last 3 years ROCE has grown at a yearly rate of  30.80 %
Good Operating profit margin
  • Last Year OPM  23 %
  • 2022 OPM  24 %
  • 2021 OPM  22 %
Services :

1) Outsourcing : 
  • Offshore Software Development
  • Outsourced Product Development
2) Nearshore Software Development

3) Custom Software Development

4) Web Application Development 

5) Web Content Management System :
  • Ecommerce
  • BigCommerce development company
  • Drupal Development
  • Shopify development company
  • OpenCart development
  • WooCommerce Development
  • PHP
  • Custom ERP
6) Mobile Development Services :
  • Mobile App Development
  • Mobile compatible websites
  • Mobile UI development
7) Design Services :
  • Web design services
  • Website Re-Engineering services
8) Testing Services :
  • Penetration Testing services
9) Online Marketing Service :
  • Search Engine Marketing
  • Social Media Marketing
  • Search Engine Optimization
  • Social Media Optimization
  • Mobile SEO
10) Rich Internet Applications :
  • Microsoft Silverlight
  • HTML5 and CSS3
11) Infrastructure Management Services

12) Legacy application modernization Services

13) Artificial Intelligence and Machine learning Solutions

Solutions Provided :

1) Product Innovation :
  • Product Realization
  • Product Modernization
  • Product Mobile
  • Product Testing
2) Digital Innovation :
  • Digital Marketing
  • Portals/E-Commerce
  • Creative UI/UX
  • Social
3) Technology Innovation :
  • Big Data
  • Cloud
  • Microsoft
  • Mobility
  • Open Source
Clients :

Company work with both product companies as well as other software companies that provide custom software solutions for their end clients. CG-VAK has expertise on working with clients’ requirements ranging from web-based to the client-server platform. they have developed tools and components for there product partners, as well as custom software solutions for the manufacturing, financial, accounting, banking, health-care, e-commerce, hospitality, government agencies, automobile, chemical, food & beverage, sales, and service industries among others.

Office :



The company has its offices located in Coimbatore, Tamil Nadu and California, USA.

Company's majority business is from US and Canada. they also have presence in UK, Australia, Ireland, New Zealand, Europe.

Company's order book as on December 2023 is 37 cr.

2500+ large scale successful projects, 1100+ satisfied clients, 525+ experienced professionals, 27+ years of experience.

PROS :
  1. Company with low debit.
  2. Company with good promoter holding and zero promoter pledge.
  3. Company has delivered good profit growth of 53.20 % CAGR over last 5 years.
  4. Generating good ROCE, ROE, ROA.
  5. Company is regularly maintaining its dividend payout.
  6. Stock PE is less than industry PE
  7. Positive Free Cash Flow.
CONS :
  1. Operating Profit Margin declined in last 2 quarters
  2. Negative Net Cash Flow.
This is not a buy/sell advice I am not SEBI registered, just providing basic details regarding this company from various sources available online, please do your own research or consult a SEBI registered investment advisor before taking any investment decision.

Thank You for reading this article if you liked this one please visit next week again for analysis on another new stock.

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