DigiSpice Technologies Analysis

dividend

Pros

• DiGiSPICE Technologies's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• DiGiSPICE Technologies's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

• DiGiSPICE Technologies has only been paying a dividend for 9 years, and since then dividends per share have fallen.
• Dividends paid are not well covered by earnings (0.4x coverage).
• DiGiSPICE Technologies has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

health

Pros

• DiGiSPICE Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• DiGiSPICE Technologies is profitable, therefore cash runway is not a concern.
• DiGiSPICE Technologies is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 5.1x debt.
• DiGiSPICE Technologies's cash and other short term assets cover its long term commitments.
• DiGiSPICE Technologies's level of debt (18.5%) compared to net worth is satisfactory (less than 40%).
• Low level of unsold assets.

Cons

• Operating cash flow is negative therefore debt is not well covered.
• The level of debt compared to net worth has increased over the past 5 years (3.1% vs 18.5% today).

management

Pros

• The tenure for the DiGiSPICE Technologies board of directors is about average.

Cons

• The average tenure for the DiGiSPICE Technologies management team is less than 2 years, this suggests a new team.

misc

Pros

Cons

• DiGiSPICE Technologies is not covered by any analysts.
• DiGiSPICE Technologies has significant price volatility in the past 3 months.

past

Pros

• DiGiSPICE Technologies has delivered over 20% year on year earnings growth in the past 5 years.

Cons

• DiGiSPICE Technologies has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
• It is difficult to establish if DiGiSPICE Technologies has efficiently used its assets last year compared to the IN Software industry average (Return on Assets) as it is loss-making.
• It is difficult to establish if DiGiSPICE Technologies improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
• DiGiSPICE Technologies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• DiGiSPICE Technologies has become profitable in the last year making it difficult to compare the IN Software industry average.

value

Pros

• DiGiSPICE Technologies is good value based on assets compared to the IN Software industry average.
• 517214 outperformed the Software industry which returned -27.7% over the past year.
• 517214 outperformed the Market in India which returned -14.5% over the past year.
• BSE:517214 is up 58.3% outperforming the Software industry which returned 11.5% over the past month.
• BSE:517214 is up 58.3% outperforming the market in India which returned 8% over the past month.

Cons

• DiGiSPICE Technologies's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• DiGiSPICE Technologies's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• DiGiSPICE Technologies is overvalued based on earnings compared to the IN Software industry average.
• DiGiSPICE Technologies is overvalued based on earnings compared to the India market.