Softsol India Ltd - Stock Valuation and Financial Performance

BSE: 532344 | NSE: | IT - Software | Small Cap

Softsol India Share Price

268.30 5.20 1.98%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Softsol India

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Softsol India stock performance -

mw4me loader
P/E Ratio (SA):
44.93
Market Cap:
369.3 Cr.
52-wk low:
131.5
52-wk high:
343.8

Is Softsol India Ltd an attractive stock to invest in?

1. Is Softsol India Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Softsol India Ltd is a below average quality company.

2. Is Softsol India Ltd undervalued or overvalued?

The key valuation ratios of Softsol India Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Softsol India Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Softsol India Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Softsol India:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Softsol India Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 1%0.3%0%2.5%2%2.5%3.2%3.9%2.6%2.9%-
Value Creation
Index
-0.9-1.0-1.0-0.8-0.9-0.8-0.8-0.7-0.8-0.8-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 5.653.72.514.518.422.418.924.231.525
Sales YoY Gr.--11.7%-26.1%-32.1%479.2%26.9%22%-15.7%28.1%30.2%-
Adj EPS 1.10.3-0.12.11.41.82.53.32.32.75.6
YoY Gr.--69.1%-120.6%NA-36%35.6%36.6%32.4%-29.3%16.2%-
BVPS (₹) 108.3108.7107.870.47478.683.189.796.189.994.8
Adj Net
Profit
1.90.6-0.13.62.33.14.25.63.948
Cash Flow from Ops. 0.71.74.55.24.34.54.6-69.2-6.628.1-
Debt/CF from Ops. 0000000000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 21.1%16.8%12.1%30.2%
Adj EPS 10.6%15%2.9%16.2%
BVPS-2.1%4%2.6%-6.5%
Share Price 19.6% 51.9% 50.4% 81.2%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
10.3-0.12.41.92.43.13.82.52.76
Op. Profit
Mgn %
-81.9-81-164.1-183.73934.233.536.123.920.322
Net Profit
Mgn %
3311.4-3.3142.115.716.818.829.516.312.832.6
Debt to
Equity
0000000000-
Working Cap
Days
609675776960144111938271,3371,039225
Cash Conv.
Cycle
144284335288607967766262195

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 6.00%

Sales growth is growing at healthy rate in last 3 years 12.05%

Net Profit has been subdued in last 3 years 2.85%

Sales growth is not so good in last 4 quarters at -18.84%

Latest Financials - Softsol India Ltd.

Standalone Consolidated
TTM EPS (₹) 5.6 14.9
TTM Sales (₹ Cr.) 25.2 72.4
BVPS (₹.) 94.8 104.3
Reserves (₹ Cr.) 125 139
P/BV 2.64 2.40
PE 44.93 16.83
From the Market
52 Week Low / High (₹) 131.50 / 343.80
All Time Low / High (₹) 7.13 / 343.80
Market Cap (₹ Cr.) 369
Equity (₹ Cr.) 14.8
Face Value (₹) 10
Industry PE 33.7

Management X-Ray of Softsol India:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Softsol India

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales6543141822192432
Operating Expenses 10910791215121825
Manufacturing Costs2121122113
Material Costs2000000000
Employee Cost 3664681191519
Other Costs 2222222223
Operating Profit -5-4-6-5668766
Operating Profit Margin (%) -83.9%-81.0%-164.0%-185.0%39.0%34.2%33.5%36.1%23.9%20.3%
Other Income 11101116555837
Interest 0000000000
Depreciation 3533322222
Exceptional Items 0000000000
Profit Before Tax 3218891013712
Tax 2001223226
Profit After Tax 21185681146
PAT Margin (%) 31.6%24.3%25.7%302.8%37.8%34.5%34.5%57.4%17.9%19.2%
Adjusted EPS (₹)1.10.70.64.53.33.84.66.42.64.1
Dividend Payout Ratio (%)0%0%213%0%0%0%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 183183182119125133140151162133
Share Capital 17171717171717171715
Reserves 166166165102108115123134145118
Minority Interest0000000000
Debt0000000000
Long Term Debt0000000000
Short Term Debt0000000000
Trade Payables3000000001
Others Liabilities 444456661322
Total Liabilities 190188187123130139146157175156

Fixed Assets

Gross Block59646433343435202020
Accumulated Depreciation253033358108910
Net Fixed Assets34343130282625121110
CWIP 5000001040
Investments 1151441478694106114504637
Inventories0000000000
Trade Receivables5522454547
Cash Equivalents 25221211126
Others Assets54542129010796
Total Assets 190188187123130139146157175156

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 1245455-69-728
PBT 3218891013712
Adjustment -132-3-2-2-3-6-1-5
Changes in Working Capital -0-220-011-74-1124
Tax Paid -20-10-1-3-4-2-2-3
Cash Flow From Investing Activity -17-25-5-6-4-6-469811
Capex -200-2-10-1-3-4-3
Net Investments -20-28-3-4-3-5-3711111
Others 53-10000014
Cash Flow From Financing Activity 000000000-35
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 0000000000
Interest Paid 0000000000
Dividend Paid 0000000000
Others 000000000-35
Net Cash Flow -16-24001-11-114
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)0.980.660.525.054.514.935.677.462.774.11
ROCE (%)1.810.910.745.676.516.957.888.854.248.26
Asset Turnover Ratio0.030.030.020.020.110.140.160.120.150.19
PAT to CFO Conversion(x)0.5240.630.80.830.63-6.27-1.754.67
Working Capital Days
Receivable Days192331344300698472856968
Inventory Days0000000000
Payable Days225000000000

Softsol India Ltd Stock News

Softsol India Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Softsol India on 28-Mar-2024 16:01 is ₹268.3.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of Softsol India stood at ₹369.3.
The latest P/E ratio of Softsol India as of 28-Mar-2024 16:01 is 44.93.
The latest P/B ratio of Softsol India as of 28-Mar-2024 16:01 is 2.64.
The 52-week high of Softsol India is ₹343.8 and the 52-week low is ₹131.5.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Softsol India is ₹25.20 ( Cr.) .

About Softsol India Ltd

SoftSol was founded in 1993 and since inception, it has always been profitable, debt-free, and financially stable company.

SoftSol India (and its U.S. subsidiary SoftSol Resources, Inc.) and SoftSol Technologies, Inc. (and its German subsidiary Napier, Gmbh) are affiliated by virtue of common ownership and management. The term SoftSol represents the combined capabilities of the above-referenced companies.   

SoftSol specializes in Enterprise Technology Modernization solutions. It develops custom software in both .NET and J2EE environments, modernizes legacy systems, integrates ERP systems and helps its clients in technologies such as Service Oriented Architecture (SOA) to implement real world solutions for both industry and government clients.

SoftSol's Enterprise Technology Modernization solutions rely on a unique combination of highly efficient automated tools, proven methodologies, best practices and scalable professional resources. SoftSol teams further enhance the value proposition by complying with customer's unique requirements such as fixed bid, off-shore, U.S. security clearance etc.

SoftSol has more than 600 highly qualified IT professionals and 150,000 square feet of state-of-the-art technology development centers located both domestically and abroad. SoftSol delivers world-class services through a combination of geographic presence and specialized technology practices.  

Services offered by the company:

It provides software solutions and services with a total focus on assisting companies to streamline business processes and improve ROI.  It has managed several multi-million dollar projects for giants in both the private and public sector, including the US Department of Defense, HBO, Superior Court of California, and Arcelor-Mittal. 

  • Enterprise Technology Modernization
  • Application Development and Support
  • Data Quality and Business Intelligence
  • Service Oriented Architecture
  • Consulting

Clients:

  • HBO (Home Box Office)
  • ArcelorMittal
  • CalPERS
  • Infoscore Software Service GmbH
  • Superior Court of California
  • SSA Global
  • Telekurs Financials
  • Invision

Achievements/ recognition:

  • SoftSol Awarded $11 Million Contract with US Department of Defense
  • SoftSol Joins Microsoft's Mainframe Migration Alliance
  • German Financial Software Products and Services Company uses SoftSol.
  • CalPERS Fund Deploys Java Enterprise Application Built by SoftSol Resources 
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