Analysis on Inventurus Knowledge Solutions

Most Important thing to look for in Financial Statements
Income Statement	IKS		Balance Sheet	IKS
Sales Growth	76% Y-o-Y,		Debt/Equity	0.67X
OPM	28%		Capex	No, Aquisition made
NPM	20-25%		WC	6 -20days
Depriciation	Going Up		Sales/Fixed Assets	1.0
Int/Ebitda	0.11X		Cash+Investment	271 Cr
Earnings Growth Last 3 Yeas	31%%		Debt Burden	33.5%
			B/S Stronger Over Time	Tripled

 

Dupont ROE
IKS	Mar-21	Mar-22	Mar-23	Mar-24
DU Pont ROE	36.11%	36.01%	36.79%	31.95%
Net Profit Margin	29.84%	30.50%	29.58%	20.35%
Sales/Total assets	0.94	0.97	1.04	0.63
Financial Leverage	1.28	1.22	1.19	2.49

Management Analysis
1. Was there any fraud, financial irregualrities , Sebi related issues in the co?
Recently faced allegations from minority shareholders concerning corporate governance practices and statutory violations
2. Change in Promoter Holding
No
3. Related Party Transaction
Not Material
4. Cash Flow GEneration- Cum PATv/s Cum CFO
Cum PAT 1212 cr V/s Cum CFO 1069 cr
5. Community Insights
Not much info in Valuepickr Forum
6. Financial Discipline CFO/PAT>80%
88.20%

	Fundamental Checklist
1	Profitability
-	ROE & ROCE>15 %, If not , can they go above 15%				40%
-	Margins- Fluctuating or Expanding Consistently?				Consistent
2	OperatingDynamics
-	Operating Leverage				Yes, Bcoz of Aquisition
-	Company V/s Peers
-	Is the base favourable for next 2-3 Quarters				Yes
3	Cash Flow & Debt
-	Converting Profits into Cash				Yes
-	D/E Ratio				0.67X
4	Growth Potential
-	Industry Headwinds/Tailwinds?		11-12% CAGR		Tailwinds
-	What is Variant Perception
	Deleveraging	New Orders	Acquisition
	Margin Expansion	Cost Cutting	Govt. Incentives
	Better Product Mix	Demerger	Higher VAP
	Volume Growth	Capex Live