DRC Systems India Limited (DRCSYSTEMS) AI Stock Analysis

• Market Cap: ₹2.30B
• Dividend Yield: N/A
• Average Volume (3M): 11.34K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 1.15
• Revenue Growth: 22.13%
• EPS Growth: 7.44%
• Country: IN
• Employees: 175
• Sector: Technology
• Sector Strength: 97
• Industry: Information Technology Services
• EPS (TTM): 0.33
• Shares Outstanding: 133,694,340
• 10 Day Avg. Volume: 13,776
• 30 Day Avg. Volume: 11,340
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹20.50
• Price Target Upside: 20.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ₹20.50 ▲(20.02% Upside)

DRC Systems India Limited's strong financial performance is the primary driver of the stock score, supported by effective cash flow management and profitability. However, weak technical indicators and lack of dividend yield limit the overall attractiveness.

DRC Systems India Limited Business Overview & Revenue Model

Company Description

DRC Systems India Limited (DRCSYSTEMS) is a technology company specializing in providing comprehensive IT solutions and services. The company operates in sectors such as software development, digital transformation, enterprise solutions, and IT consulting. Its core offerings include custom software development, mobile application development, and web solutions tailored to meet the specific needs of businesses across various industries.

How the Company Makes Money

DRC Systems India Limited generates revenue primarily through the development and delivery of bespoke software solutions and IT consulting services. The company charges clients for software development projects based on project scope, complexity, and timelines, often employing a combination of fixed-price and time-and-materials billing models. Additionally, DRCSYSTEMS earns income from ongoing maintenance and support contracts, which provide steady, recurring revenue streams. The company may also form strategic partnerships with technology providers to enhance its service offerings and extend its market reach, contributing further to its revenue generation.

DRC Systems India Limited Financial Statement Overview

Summary

DRC Systems India Limited demonstrates strong financial health with significant revenue growth, robust profitability, and efficient cash flow management. The company maintains a solid balance sheet with low leverage and effective equity utilization.

Income Statement

DRC Systems India Limited has shown robust revenue growth, with a significant increase from the previous year. The gross profit margin has improved, reflecting efficient cost management. The net profit margin has also increased, indicating strong profitability. The company’s EBIT and EBITDA margins are healthy, showcasing operational efficiency and effective cost control.

Balance Sheet

The balance sheet is strong, with a favorable equity ratio indicating significant equity financing. The debt-to-equity ratio is low, suggesting low financial leverage and reduced financial risk. The return on equity is impressive, demonstrating effective utilization of shareholder funds to generate profits.

Cash Flow

DRC Systems India Limited exhibits strong cash flow management. There's a notable increase in free cash flow, reflecting efficient capital expenditure and strong cash generation from operations. The operating cash flow to net income ratio indicates solid cash conversion, underscoring the company's ability to fund operations and growth without excessive reliance on external financing.

Breakdown	Mar 2025	Mar 2023	Mar 2024	Mar 2022	Mar 2021
Income Statement
Total Revenue	653.77M	218.18M	476.83M	195.01M	205.95M
Gross Profit	214.73M	60.59M	175.29M	40.02M	30.25M
EBITDA	210.81M	94.80M	149.79M	25.34M	16.52M
Net Income	150.75M	42.01M	116.54M	7.03M	-4.79M
Balance Sheet
Total Assets	995.07M	392.41M	785.64M	249.55M	144.32M
Cash, Cash Equivalents and Short-Term Investments	20.61M	70.33M	41.42M	5.09M	17.09M
Total Debt	5.10M	6.05M	7.51M	158.37M	0.00
Total Liabilities	349.16M	47.84M	307.34M	181.74M	87.30M
Stockholders Equity	645.91M	344.57M	478.30M	67.81M	57.02M
Cash Flow
Free Cash Flow	94.98M	-10.11M	33.15M	-18.86M	8.18M
Operating Cash Flow	329.00M	26.34M	277.97M	-10.71M	8.30M
Investing Cash Flow	-349.62M	-50.25M	-258.72M	-152.09M	14.00K
Financing Cash Flow	-140.00K	42.54M	-1.56M	150.80M	-518.00K

DRC Systems India Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DRCSYSTEMS, the sentiment is Negative. The current price of 17.08 is below the 20-day moving average (MA) of 18.20, below the 50-day MA of 18.67, and below the 200-day MA of 23.33, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 38.00 is Neutral, neither overbought nor oversold. The STOCH value of 47.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DRCSYSTEMS.

DRC Systems India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INTENTECH	73 Outperform	₹1.98B	12.00		1.21%	30.84%	5.11%
DRCSYSTEMS	70 Outperform	₹2.30B	14.61		―	22.13%	7.44%
DEVIT	67 Neutral	₹2.47B	18.33		0.46%	28.66%	20.93%
TRIGYN	66 Neutral	₹2.36B	21.11		―	-29.82%	-40.91%
IVP	61 Neutral	₹1.80B	19.81		0.59%	-1.08%	-37.53%
RSSOFTWARE	61 Neutral	₹1.90B	342.25		0.37%	-31.06%	-97.39%
Sector *	50 Neutral	C$3.52B	0.80	-5.03%	7.64%	16.88%	-2.22%