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Check Before You Invest : California Software Company Ltd

BSE: 532386 NSE: CALSOFT ISIN: INE526B01014
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does California Software Company Ltd belong to?
California Software Company Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is California Software Company Ltd a good quality company?
California Software Company Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is California Software Company Ltd undervalued or overvalued?
California Software Company Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is California Software Company Ltd a good buy now?
California Software Company Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of California Software Company Ltd?
California Software Company Ltd revenue growth is 27.3% for FY-2025 , which is below its 5 year CAGR of 35.8% , indicating slower growth.
Q.2 Gross Profit margin of California Software Company Ltd?
California Software Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 28.7% for FY-2025 , which is below its 5 year median of 38.4% , indicating decreasing margins.
Q.3 Operating Profit Margin of California Software Company Ltd?
California Software Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 28.85% for FY-2025 , which is below its 5 year median of 43.28% indicating decreasing margins.
Q.4 Net Profit Margin of California Software Company Ltd?
California Software Company Ltd Net Profit Margin is 13.21% for FY-2025 , is below with its 5 year median of 13.36%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 28.7 38.4
Operating Profit Margin 28.85 43.28
Net Profit Margin 13.21 13.36
Q.5 Return on Asset of California Software Company Ltd?
California Software Company Ltd Return on Asset is 2.6(x), which is above its 5 year historical median of 2.36(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of California Software Company Ltd?
California Software Company Ltd Return on equity is 3.42% for FY-2025 , which is in line with its historical median of 3.42%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of California Software Company Ltd?
California Software Company Ltd Return on capital employed is 3.86% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of California Software Company Ltd?
California Software Company Ltd Cash conversion cycle is 1054 , below its historical median of 1054 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.2 0.16
ROE 3.42 3.42
ROCE 3.86 3.8
Cash Conversion Cycle 1054 1054
Q.9 Debt to Equity ratio of California Software Company Ltd?
California Software Company Ltd Debt-to-Equity ratio is 0.03 , which is above with the industry average of 0.01 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of California Software Company Ltd?
California Software Company Ltd Debt to cash flow from operations is -0.39 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of California Software Company Ltd?
Promoters hold 62.26% of the California Software Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of California Software Company Ltd vs industry peers?
California Software Company Ltd revenue CAGR is 35.80% , compared to the industry median CAGR of 2.48% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 5.5 23.6
Gross Profit 1.6 1.9
Operating Profit 1.6 1.2
Net Profit 0.7 0.8
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.2 0.45
ROE 3.42 4.09
ROCE 3.86 6.4
Cash Conversion Cycle 1054.19 36

Valuation & price assessment

Q.1 Stock return of California Software Company Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 9.3% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 9.3% 17.7% 14.6% 4.8%
Q.3 Valuation ratios of California Software Company Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 42.19 0.00 22.96
Price to Book 1.14 0.42 2.61
Price to Sales 9.55 12.93 4.40
EV to EBITDA 25.41 0.00 17.20

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