DRC Systems India Limited (IN:DRCSYSTEMS)
:DRCSYSTEMS
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DRC Systems India Limited
(DRCSYSTEMS)
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Rating:76Outperform
Price Target:
₹17.00
▼(-3.74% Downside)
Action:Upgraded
Date:05/22/26
The score is driven primarily by strong financial performance (rapid growth, solid profitability, deleveraged balance sheet, and improved FY2026 cash-flow conversion). This is tempered by a mixed technical picture with weak longer-term trend signals, while valuation appears supportive due to the relatively low P/E.
Positive Factors
Multi-year revenue growth
Sustained revenue scale-up (FY2026 +27% YoY) indicates expanding client wins and service demand. For a time-and-materials / project-driven IT services firm this growth reflects durable commercial traction, broader addressable market penetration and improving operational scale.
Negative Factors
Margin compression
Margins have declined versus prior years even as revenue grew, suggesting pricing pressure, mix shift to lower-margin work, or rising delivery costs. If structural, this could erode the company’s ability to convert growth into durable profits and weaken long-term cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year revenue growth
Sustained revenue scale-up (FY2026 +27% YoY) indicates expanding client wins and service demand. For a time-and-materials / project-driven IT services firm this growth reflects durable commercial traction, broader addressable market penetration and improving operational scale.
Read all positive factors
DRC Systems India Limited (DRCSYSTEMS) vs. iShares MSCI India ETF (INDA)
Market Cap
₹2.15B
Dividend YieldN/A
Average Volume (3M)17.86K
Price to Earnings (P/E)9.5
Beta (1Y)1.56
Revenue Growth46.09%
EPS Growth27.31%
CountryIN
Employees175
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.26
Shares Outstanding144,081,330
10 Day Avg. Volume4,679
30 Day Avg. Volume17,860
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)1.77
Price to Sales (P/S)2.08
P/FCF Ratio4.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 distribu...
How the Company Makes Money
DRC Systems primarily makes money by delivering IT services on a contract basis to clients. Key revenue streams typically include (1) custom software and application development fees (building or modernizing web, mobile, and enterprise application...
DRC Systems India Limited Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
93
Very Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 750.04M | 955.05M | 653.77M | 476.83M | 256.25M | 195.01M |
| Gross Profit | 248.84M | 283.03M | 214.73M | 175.29M | 87.44M | 40.02M |
| EBITDA | 243.65M | 281.50M | 210.81M | 149.79M | 94.80M | 25.34M |
| Net Income | 166.02M | 192.63M | 150.75M | 116.54M | 66.94M | 7.03M |
Balance Sheet | ||||||
| Total Assets | 1.18B | 1.54B | 995.07M | 785.64M | 392.41M | 249.55M |
| Cash, Cash Equivalents and Short-Term Investments | 57.28M | 48.98M | 175.61M | 41.42M | 23.73M | 5.09M |
| Total Debt | 32.91M | 4.17M | 5.10M | 7.51M | 6.05M | 158.37M |
| Total Liabilities | 406.32M | 414.53M | 349.16M | 307.34M | 47.84M | 181.74M |
| Stockholders Equity | 757.08M | 1.13B | 645.91M | 478.30M | 342.75M | 67.81M |
Cash Flow | ||||||
| Free Cash Flow | 96.12M | 477.06M | 94.98M | 33.15M | -10.11M | -18.86M |
| Operating Cash Flow | 96.93M | 478.27M | 329.00M | 277.97M | 26.34M | -10.71M |
| Investing Cash Flow | -46.52M | -716.53M | -349.62M | -258.72M | -50.25M | -152.09M |
| Financing Cash Flow | -15.34M | 248.87M | -140.00K | -1.56M | 41.72M | 150.80M |
DRC Systems India Limited Technical Analysis
Negative
17.66
Price Trends
15.04
Negative
15.50
Negative
17.23
Negative
Market Momentum
-0.07
Positive
45.23
Neutral
27.04
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 17.66 is above the 20-day moving average (MA) of 15.19, above the 50-day MA of 15.04, and above the 200-day MA of 17.23, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 45.23 is Neutral, neither overbought nor oversold. The STOCH value of 27.04 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ₹2.15B | 9.53 | ― | ― | 46.09% | 27.31% | |
70 Outperform | ₹1.80B | 9.23 | ― | 0.68% | 10.31% | 65.16% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | ₹1.58B | 2.19 | ― | 0.49% | 11.04% | 407.75% | |
55 Neutral | ₹2.27B | -14.06 | ― | 0.84% | -21.33% | -207.13% | |
47 Neutral | ₹1.79B | 85.17 | ― | ― | 8.73% | -83.00% | |
44 Neutral | ₹821.43M | -3.16 | ― | 0.46% | -56.14% | -419.18% |
* Technology Sector Average
IN:DRCSYSTEMS
DRC Systems India Limited
15.00
-3.48
-18.83%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.