Nucleus Software : (Rs.74.55 on 26 Oct 2012)
Market Capitalization : 241 Crores
Total Revenue in 2011 - 2012 FY : 282 Crores
Total Revenue in 2012-2013 (Q1 & Q2) : 145 Crores
Net Profit in Year Ended 2012 : 35 Crores
Net Profit in Q1 & Q2 2012 - 2013 : 22 Crores
Earning Per Share (EPS) in 2012 : Rs.10.9
Earnings Per Share (EPS) in Q1 & Q2 2012 - 2013 : Rs.6.91
PE Ratio based on 2012 EPS : 74.5/10.9 = 6.8 times
Balance Sheet Information
Equity & Liabilities
Consolidated Reserves and Surplus : 340 Crores
Liabilities (Including Short Term and Long Term) : 58 Crores
So Total Equities and Liabilities : 410 Crores
Non Current Assets : 76 Crores
Current Assets : 334 Crores
Total Assets : 410 Crores
Lets see the break up of Current Assets.
Current Investments (Mutual Funds or other liquid investments) : 116 Crore
Cash and Cash equivalents : 118 Crores
Trade Receivable : 59 Crores
Short Term Advances : 10 Crores
Other Current Assets : 28 Crores
Why I think this is Undervalued?
I don't know if you got it already. If you have not, here are the reasons.
- It is very rare for a service providing company trading less than the book value. But this company is trading less than the book value ( Rs. 74 Against the Book Value of Rs.96).
- Considering the trade receivable of Rs. 59 crore, the debt is almost zero / negligible.
- But more importantly Cash and liquid investment is Rs.234 Crores ( Rs. 73 per share). In other words a company which has Rs.234 crore cash on hand is trading at a Market Capitalization of Rs.241 Crores.