Check Before You Invest : Compucom Software Ltd

Snapshot

Q.1 Which industry/sub-sector does Compucom Software Ltd belong to?

Compucom Software Ltd belongs to the IT & ITES sector, operating specifically within the IT - Education segment.

Q.2 Is Compucom Software Ltd a good quality company?

Compucom Software Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Compucom Software Ltd undervalued or overvalued?

Compucom Software Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Compucom Software Ltd a good buy now?

Compucom Software Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Compucom Software Ltd?

Compucom Software Ltd revenue growth is -54.2% for FY-2025, which is below its 5-year CAGR of 15.66%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Compucom Software Ltd?

Compucom Software Ltd Return on capital employed is 4.06% for FY-2025, which is below its 5-year historical median of 5.47%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Compucom Software Ltd?

Compucom Software Ltd Return on Asset is 1.19%, which is below its 5-year historical median of 2.6%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Compucom Software Ltd?

Compucom Software Ltd Return on equity is 1.63% for FY-2025, which is below its 5-year historical median of 3.38%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Compucom Software Ltd?

Compucom Software Ltd Cash conversion cycle is 664 days, above its 5-year historical median of 409 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.15	0.18
ROE	1.63	3.38
ROCE	4.06	5.47
Cash Conversion Cycle	664 days	409 days

Q.6 Gross Profit margin of Compucom Software Ltd?

Compucom Software Ltd Gross profit margin which is the profit after deduction of direct costs, is 31.5% for FY-2025, which is in line with its 5-year median of 31.5%, indicating stable margins.

Q.7 Operating Profit Margin of Compucom Software Ltd?

Compucom Software Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 26.59% for FY-2025, which is above its 5-year median of 17.71% indicating increasing margins.

Q.8 Net Profit Margin of Compucom Software Ltd?

Compucom Software Ltd Net Profit Margin is 7.84% for FY-2025, is below with its 5-year median of 9.09%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	31.5	31.5
Operating Profit Margin	26.59	17.71
Net Profit Margin	7.84	9.09

Q.9 Debt to Equity ratio of Compucom Software Ltd?

Compucom Software Ltd Debt-to-Equity ratio is 0.21, which is above with the industry average of 0.05, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Compucom Software Ltd?

Compucom Software Ltd Debt to cash flow from operations is 0.76, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Compucom Software Ltd?

Promoters hold 71.49% of the Compucom Software Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Compucom Software Ltd vs industry peers?

Compucom Software Ltd revenue CAGR is 15.66%, compared to the industry median CAGR of -0.85%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-54.2	-0.9
Gross Profit Growth	-30.8	1.1
Operating Profit Growth	-27.3	NAN
Net Profit Growth	-60	-18.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.15	0.12
ROE	1.63	0.21
ROCE	4.06	0.55
Cash Conversion Cycle (days)	664.41	28

Valuation & price assessment

Q.1 Stock return of Compucom Software Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 4.2% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	4.2%	12.1%	-5.6%	-23.5%

Q.3 Valuation ratios of Compucom Software Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	43.76	35.43	31.71
Price to Book	0.8	1.25	1.07
Price to Sales	3.59	4.68	6.47
EV to EBITDA	8.96	9.27	9.26

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