DRC Systems India Limited (DRCSYSTEMS) AI Stock Analysis

• Market Cap: ₹2.53B
• Dividend Yield: N/A
• Average Volume (3M): 17.86K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 1.28
• Revenue Growth: 22.13%
• EPS Growth: 7.44%
• Country: IN
• Employees: 175
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.33
• Shares Outstanding: 134,081,330
• 10 Day Avg. Volume: 4,679
• 30 Day Avg. Volume: 17,860
• PEG Ratio: 0.78
• Price to Book (P/B): 5.68
• Price to Sales (P/S): 5.61
• P/FCF Ratio: 38.62
• 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: ₹23.00
• Price Target Upside: 21.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ₹23.00 ▲(21.82% Upside)

DRC Systems India Limited scores well due to its strong financial performance, characterized by robust profitability and efficient cash flow management. The technical analysis presents mixed signals, with some support levels but neutral momentum indicators. The valuation is reasonable, with a P/E ratio suggesting fair pricing. The absence of earnings call data and corporate events means these factors do not influence the score.

DRC Systems India Limited Business Overview & Revenue Model

Company Description

DRC Systems India Limited, a software development company, provides IT business solutions worldwide. It offers Z-ERP, a smart web-based ERP solution primarily for B2B business that enables services, such as financial accounting, sales and distribution, procurement, inventory management, payroll, project management, compliance management, system administration, and quality control. The company also provides consultancy and discovery workshop services, and dedicated developers; UI/UX, wireframe, and frontend design services; web development, mobile application development, content management system, digital commerce/e-commerce, and eLearning services; blockchain, big data, engineering, and IOT services; and cyber security, manual testing, automation testing, and performance testing services. In addition, it offers DevOps and cloud, salesforce, and support and maintenance services; data analytics, and AI and automation services; and enterprise resource planning, enterprise, digital marketing, digital process automation, and hub spot solutions. It serves health care, financial Services, retail, education, transportation, hospitality, and public sector. The company was formerly known as DRC Systems India Private Limited. The company was incorporated in 2012 and is headquartered in Gandhinagar, India.

How the Company Makes Money

DRC Systems India Limited generates revenue through a multi-faceted business model that includes project-based consulting services, software licensing, and subscription fees for cloud-based solutions. Key revenue streams consist of custom software development contracts with enterprises, ongoing maintenance and support services, and recurring revenue from software as a service (SaaS) offerings. The company has established significant partnerships with technology firms and industry leaders, enabling it to enhance its service offerings and expand its market reach. Additionally, DRCSYSTEMS benefits from strategic alliances that facilitate access to new clients and projects, contributing to its overall earnings.

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, positioning it well for future growth.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	683.13M	653.77M	476.83M	256.25M	195.01M	205.95M
Gross Profit	247.48M	214.73M	175.29M	87.44M	40.02M	30.25M
EBITDA	224.17M	210.81M	149.79M	94.80M	25.34M	16.52M
Net Income	155.71M	150.75M	116.54M	66.94M	7.03M	-4.79M
Balance Sheet
Total Assets	0.00	995.07M	785.64M	392.41M	249.55M	144.32M
Cash, Cash Equivalents and Short-Term Investments	20.61M	175.61M	41.42M	23.73M	5.09M	17.09M
Total Debt	0.00	5.10M	7.51M	6.05M	158.37M	0.00
Total Liabilities	-645.91M	349.16M	307.34M	47.84M	181.74M	87.30M
Stockholders Equity	645.91M	645.91M	478.30M	342.75M	67.81M	57.02M
Cash Flow
Free Cash Flow	0.00	94.98M	33.15M	-10.11M	-18.86M	8.18M
Operating Cash Flow	0.00	329.00M	277.97M	26.34M	-10.71M	8.30M
Investing Cash Flow	0.00	-349.62M	-258.72M	-50.25M	-152.09M	14.00K
Financing Cash Flow	0.00	-140.00K	-1.56M	41.72M	150.80M	-518.00K

DRC Systems India Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 18.88 is below the 20-day moving average (MA) of 20.25, below the 50-day MA of 19.62, and below the 200-day MA of 21.71, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 39.29 is Neutral, neither overbought nor oversold. The STOCH value of 9.98 is Positive, 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
DRCSYSTEMS	72 Outperform	₹2.53B	16.15	―	―	22.13%	7.44%
INTENTECH	66 Neutral	₹3.07B	36.01	―	0.76%	-10.39%	-52.44%
DEVIT	62 Neutral	₹2.15B	15.97	―	0.52%	28.58%	21.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IVP	61 Neutral	₹1.63B	17.94	―	0.64%	-1.08%	-37.53%
RSSOFTWARE	61 Neutral	₹1.84B	330.27	―	0.36%	-31.06%	-97.39%
TRIGYN	59 Neutral	₹2.37B	21.11	―	―	-26.70%	-102.94%