Everything You Need to Know About DC Infotech and Communication Ltd.(NSE: DCI)

Stock Data :

Ticker (NSE) : DCI

Exchange : BSE & NSE

Industry : Information Technology Solutions

Price Performance :

Last 5 Days = +1.0%

*As per 11th Jan 2023

Company Description:

DC Infotech and Communication Limited (NSE: DCI) is an IT Solutions Distributor in India who started his business with the resale and redistribution of his IT hardware products such as cabinets, motherboards. The company has a distribution business and partners with many network and security brands for domestic distribution. The company’s business is a broad distribution model based on multiple products and a multi-brand strategy.

The company operates through a dealer network of around 1600 dealers and through sales representatives. The company follows a B2B and B2C business model to provide complete information technology solutions and support to its channel partners. The focus is to capture a considerable market share in each of the product categories.

Quantitative analysis:

DC Infotech is a company with a market capitalization of ₹ 163 Cr. Its current stock price is ₹ 132 (as on 11th January 2023). The stock has a high of ₹ 183 and a low of 36.0 in the recent trading period. The Price to Earnings (P/E) ratio of the stock is 40.6 and its book value is ₹ 21.4 and the Return on Capital Employed (ROCE) is 18.4%. The Return on Equity (ROE) is 19.6%.

The financial results for the quarter ending September 2022 for DC Infotech show that the company had a total income of ₹ 89.35 crore which is a decrease of 0.99% compared to the previous quarter. The company’s total expenses were ₹ 86.08 crore, which is a decrease of 2.10% compared to the previous quarter. The company had an Earnings Before Interest and Taxes (EBIT) of ₹ 3.27 crore , which is an increase of 41.49% compared to the previous quarter.

The company’s profit after tax (PAT) was ₹ 1.89 crore , which is an increase of 40.30% compared to the previous quarter. The EBIT margin for the quarter was 3.66%, and the net profit margin was 2.11%. The Basic Earnings Per Share (EPS) for the quarter was ₹ 1.58. Overall the company has faced a decrease in total income and total expenses but the company’s profitability has increased which can be seen through the growth in EBIT, PAT and EPS.

Overall, DC Infotech’s financial performance over the past quarter has been positive, demonstrating steady revenue and margin growth. The company’s business appears to be well-run, efficient, and cost-controlled. This is a positive sign for investors. Additionally, the company has not declared any dividends to its shareholders.

The company posted strong revenue growth but relatively low operating margins, suggesting it may face challenges managing spending. Interest and depreciation remain constant over the years. However, the company’s net income has increased steadily over this period, as have its earnings per share.

Analytical Insights:

A quick look at a company’s price/earnings ratio (P/E) can give you an idea of ​​how much the company is worth. The company’s P/E ratio is 40.6, indicating that the company is trading at a premium compared to its peers. This may be due to the company’s strong revenue growth during this period. DC Infotech and Communication Limited has reported strong revenue growth over the last three years, which bodes well for the company. However, the company’s relatively low operating margins are cause for concern.

Additionally, the company has not declared any dividends to its shareholders. The company reports steady increases in net income and EPS, which are positive signs. Overall, DC Infotech and Communications Limited is a company that has demonstrated strong revenue growth, but also faces challenges in managing expenses with limited operating margins.