Check Before You Invest : Fidel Softech Ltd

BSE: 0 NSE: FIDEL ISIN: INE0LQQ01019

| Sector: IT & ITES | Industry: IT - Software

Snapshot

Q.1 Which industry/sub-sector does Fidel Softech Ltd belong to?

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

Q.2 Is Fidel Softech Ltd a good quality company?

Fidel Softech Ltd is a good quality company, based on a consistently good 6-year financial track record.

Q.3 Is Fidel Softech Ltd undervalued or overvalued?

Fidel Softech Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Fidel Softech Ltd a good buy now?

Fidel Softech Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Fidel Softech Ltd?

Fidel Softech Ltd revenue growth is 36.7% for FY-2025, which is above its 5-year CAGR of 19.62%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Fidel Softech Ltd?

Fidel Softech Ltd Return on capital employed is 30.13% for FY-2025, which is in line with its 5-year historical median of 30.13%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Fidel Softech Ltd?

Fidel Softech Ltd Return on Asset is 19.35%, which is in line with its 5-year historical median of 19.35%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Fidel Softech Ltd?

Fidel Softech Ltd Return on equity is 22.39% for FY-2025, which is in line with its 5-year historical median of 22.78%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Fidel Softech Ltd?

Fidel Softech Ltd Cash conversion cycle is 76 days, above its 5-year historical median of 69 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	1.14	1.18
ROE	22.39	22.78
ROCE	30.13	30.13
Cash Conversion Cycle	76 days	69 days

Q.6 Gross Profit margin of Fidel Softech Ltd?

Fidel Softech Ltd Gross profit margin which is the profit after deduction of direct costs, is 22.9% for FY-2025, which is in line with its 5-year median of 22.2%, indicating stable margins.

Q.7 Operating Profit Margin of Fidel Softech Ltd?

Fidel Softech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.73% for FY-2025, which is above its 5-year median of 20.65% indicating increasing margins.

Q.8 Net Profit Margin of Fidel Softech Ltd?

Fidel Softech Ltd Net Profit Margin is 16.9% for FY-2025, is in line with with its 5-year median of 16.14%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	22.9	22.2
Operating Profit Margin	21.73	20.65
Net Profit Margin	16.9	16.14

Q.9 Debt to Equity ratio of Fidel Softech Ltd?

Fidel Softech Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.11, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Fidel Softech Ltd?

Fidel Softech Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Fidel Softech Ltd?

Promoters hold 73.06% of the Fidel Softech Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Fidel Softech Ltd vs industry peers?

Fidel Softech Ltd revenue CAGR is 19.62%, compared to the industry median CAGR of 10.86%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	36.7	10.9
Gross Profit Growth	62.5	19
Operating Profit Growth	71.4	NAN
Net Profit Growth	50	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.14	0.5
ROE	22.39	5.83
ROCE	30.13	6.79
Cash Conversion Cycle (days)	76.03	47

Valuation & price assessment

Q.1 Stock return of Fidel Softech Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 30.84% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	30.8%	25.6%

Q.3 Valuation ratios of Fidel Softech 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	26.09	22.92	47.37
Price to Book	4.68	4.03	2.63
Price to Sales	4.95	3.78	4.79
EV to EBITDA	18.41	16.26	16.48

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