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DRC Systems India Limited (DRCSYSTEMS) Fair Value & Analysis

Technology · IN · Market cap ₹2.1B

DS DRC Systems India Limited DRCSYSTEMS · NSE
Price₹12.81
Fair Value₹25.59
Upside+99.8%
Quality63/100
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Healthy Growth
Highly profitable · 20.2% net margin
Low debt · generates free cash flow
Ranks above peers (12/13)
Wide moat 73/100
Evidence: High Range ₹19.24 – ₹31.94 Share as image

Fair value as of: Aug 2, 2026

From 24 valuation models · updated 11 days ago

Fair value updated Aug 2, 2026, revised from ₹30.23 to ₹25.59 (−15.3%) since Jun 29, 2026. Share price −7.2% over the past month.

A solid business, screening 100% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (₹19.24). The market is more pessimistic than our downside scenario.
  • Solid quality (63/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

₹34.50 ₹6.17 Fair Value ₹25.59 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.

How to read this chart

60‑month range ₹6.17 – ₹34.50 · fair‑value band ₹19.24 – ₹31.94 · the ₹12.81 price screens below the ₹25.59 fair value. Dashed = 300-day average. As of Aug 2, 2026.

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Analysis

DRC Systems India Limited (DRCSYSTEMS) currently trades at ₹12.81, while our model-based Fair Value estimate is ₹25.59, implying the stock looks roughly 99.8% undervalued today. The Quality Score stands at 63/100 (solid quality), in the Technology sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, DRC Systems India Limited generated revenue of ₹955M at a net margin of 20.2%. Revenue grew 60.7% year over year. It earns a return on equity of 21.8%. The balance sheet holds a net cash position of ₹27.1M. Fundamentals as of Aug 2, 2026

Our scenario range runs from ₹19.24 (bear case) to ₹31.94 (bull case); at ₹12.81, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 46% below its 52-week high and 11% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -6% fair-value upside, at 100%, DRCSYSTEMS screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ₹49.67 ₹94.35 ₹166.33 80
Rev-Margin DCF ₹26.62 ₹41.80 ₹73.17 74
ROIC Compounder ₹16.39 ₹24.26 ₹29.66 72
All 24 models by family
DCF Models
FCF DCF ₹52.88 ₹81.30 ₹169.91 38
Owner Earnings ₹26.96 ₹59.48 ₹125.24 31
5Y Revenue Exit ₹24.45 ₹36.49 ₹61.23 39
5Y EBITDA Exit ₹29.34 ₹46.37 ₹79.58 41
5Y P/E Exit ₹30.08 ₹58.82 ₹96.59 38
10Y Revenue Exit ₹32.88 ₹58.77 ₹71.17 36
10Y EBITDA Exit ₹36.87 ₹69.06 ₹121.10 37
10Y P/E Exit ₹37.40 ₹70.62 ₹122.01 35
Earnings-Based
Graham-Dodd ₹9.09 ₹63.40 ₹88.97 54
Lynch FV ₹32.76 ₹46.79 ₹60.83 50
PEG = 1.0 ₹32.76 ₹46.79 ₹60.83 46
EPV ₹12.34 ₹14.25 ₹15.90 59
Multiples
P/E Multiple ₹20.05 ₹26.74 ₹33.42 63
P/S Multiple ₹12.43 ₹16.57 ₹20.71 58
P/B Multiple ₹17.05 ₹22.73 ₹28.41 55
EV/EBIT ₹20.22 ₹26.88 ₹33.55 53
EV/EBITDA ₹19.27 ₹25.62 ₹31.97 54
EV/Revenue ₹11.82 ₹16.79 ₹21.76 43
Asset-Based
NCAV (Graham) ₹3.91 ₹5.23 ₹7.81 50
Growth DCF
Growth DCF ₹49.67 ₹94.35 ₹166.33 80
Rev-Margin DCF ₹26.62 ₹41.80 ₹73.17 74
Economic Profit
Residual Income ₹8.53 ₹11.33 ₹37.06 61
ROIC Compounder ₹16.39 ₹24.26 ₹29.66 72
Growth Earnings
Growth-Adj P/E ₹42.21 ₹60.30 ₹78.39 68

Widest divergence: Growth Earnings (₹60.30) versus Asset-Based (₹5.23). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) ₹955M
Revenue growth (YoY) +60.7%
Net margin 20.2%
Return on equity 21.8%
Free cash flow ₹477M FY2026
P/E ratio 9.2
More key figures
Operating margin 23.1%
EPS (TTM) ₹1.40
EPS growth (YoY) +27.9%
Net cash ₹27.1M FY2026

Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 63/100

Of which business quality 65 · Market factors (momentum, volatility) 31

Profitability 59
Margins and returns on capital today
Quality Growth 39
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 81
Balance sheet, leverage, solvency risk
Investment 33
Disciplined investing over empire-building
Low Volatility 69
Calm price path (market factor)
Momentum 19
Price trend over the last 3–12 months (market factor)
52W Momentum 7
Distance to the 52-week high (market factor)
Net Issuance 47
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

DRC Systems India Limited, a software development company, engages in the provision of information technology (IT) services, consulting, and business solutions in India, the United Arab Emirates, and internationally.

Full company description

DRC Systems India Limited, a software development company, engages in the provision of information technology (IT) services, consulting, and business solutions in India, the United Arab Emirates, and internationally. The company offers web development, mobile application development, digital learning / e-learning, digital commerce / e-commerce, content management system, and software testing digital services; digital transformation services, such as application modernization, digital process automation, enterprise resource planning, product and platform engineering, agile consulting, and resource augmentation services; cloud strategy and consulting, cloud migration, cloud orchestration, and cloud infrastructure management services. It also provides artificial intelligence and machine learning, blockchain development; analytics and insights, and AI-powered chatbot and virtual assistants development services, as well as project management tools and blockchain-powered document issuing platform. In addition, the company offers Economic Zone Management System, a cloud & SaaS-based solution with single integrated system providing real-time insights on customer service, compliance, operation, and management for free zone, business parks, logistics, and economic zone. It serves education, retail, manufacturing, healthcare, public sector, and BFSI sectors. The company was formerly known as DRC Systems India Private Limited. DRC Systems India Limited was incorporated in 2012 and is headquartered in Gandhinagar, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

DRC Systems India Limited reported revenue of ₹955M in FY2026 versus ₹195M in FY2022, a compound +48.8%/yr. Reported net income was ₹193M in FY2026, compounding +128.8%/yr from FY2022.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹955M
Latest YoY
+46.1%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+55.0%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+35.9%
Avg. growth/yr (8Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+34.5%
Revenue +48.8%/yr
FY22 ₹195M
FY23 ₹256M
FY24 ₹477M
FY25 ₹654M
FY26 ₹955M
Net income +128.8%/yr
FY22 ₹7.0M
FY23 ₹66.9M
FY24 ₹117M
FY25 ₹151M
FY26 ₹193M

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Cite: Fair Value Calculator (2026). "DRC Systems India Limited Fair Value". https://www.fairvalue-calculator.com/stock/DRCSYSTEMS

Peer Group

Information Technology Services · 481 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 63 · Above median
Fair Value upside +100% · Top 25%
Return on equity (TTM) 22% · Top 25%
Return on assets 11% · Top 25%
Net margin (TTM) 20% · Top 25%
Operating margin (TTM) 23% · Top 25%
Revenue growth 61% · Top 25%

Valuation Multiples vs Information Technology Services median · lower = cheaper

P/E (TTM) 9.2× · Cheaper than 75% of peers
P/B 1.83× · Cheaper than median
P/S (TTM) 2.16× · Pricier than 75% of peers
P/FCF 0.0× · Cheaper than 75% of peers
EV/EBITDA 7.2× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 24
FUTURE 100 · sector 30
PAST 87 · sector 35
HEALTH 100 · sector 97
DIVIDEND 0 · sector 37

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Aug 2, 2026).

Stock Price Fair Value vs Fair Value
International Business Machines Corporation IBM $235.92 $143.90 -39%
Accenture plc ACNN 2,460 MXN 300.07 MXN -88%
Infosys Limited INFY ₹1,156 ₹1,457 +26%
HCL Technologies Limited HCLTECH ₹1,204 ₹1,230 +2%
Wipro Limited WIPRO ₹178.43 ₹226.81 +27%
Tech Mahindra Limited TECHM ₹1,625 ₹1,521 -6%
Samsung SDS Co 018260 199,300 KRW 196,390 KRW -1%
Persistent Systems Limited PERSISTENT ₹5,059 ₹2,364 -53%
Hyundai Autoever Corporation 307950 393,000 KRW 133,088 KRW -66%
Coforge Limited COFORGE ₹1,541 ₹702.84 -54%

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Frequently asked questions

Is DRC Systems India Limited (DRCSYSTEMS) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of ₹25.59 versus a price of ₹12.81, about +100% (undervalued).
What is the fair value of DRCSYSTEMS?
Our model-based fair value for DRC Systems India Limited is ₹25.59 (as of Aug 2, 2026), built from audited fundamentals. The current price is ₹12.81.
What is the quality score of DRCSYSTEMS?
DRC Systems India Limited has a Quality Score of 63/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of DRC Systems India Limited (DRCSYSTEMS)?
DRC Systems India Limited reported trailing-twelve-month revenue of about ₹955M (latest available figure, as of Aug 2, 2026).
What is the net profit margin of DRCSYSTEMS?
The net profit margin of DRC Systems India Limited is about 20.2%, meaning it keeps roughly 20.2% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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