Check Before You Invest : GSS Infotech Ltd

Q: Which industry/sub-sector does GSS Infotech Ltd belong to?

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

Q: Is GSS Infotech Ltd a good quality company?

GSS Infotech Ltd is a quality company, based on a multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is GSS Infotech Ltd undervalued or overvalued?

GSS Infotech Ltd appears Fair, as its key valuation ratios are in line with their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 30.36, Historic Median: 122.95. Price to Book, Current: 0.15, Historic Median: 1.46. Price to Sales, Current: 4.05, Historic Median: 17.00. EV to EBITDA, Current: 133.96, Historic Median: 133.94

Q: Is GSS Infotech Ltd a good buy now?

GSS Infotech 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

Q: Revenue growth of GSS Infotech Ltd?

GSS Infotech Ltd revenue growth is -19.4% for FY-2025, which is in line with its 5-year CAGR of -19.94%, indicating stable growth.

Q: Gross Profit margin of GSS Infotech Ltd?

GSS Infotech Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.9% for FY-2025, which is above its 5-year median of 14.1%, indicating increasing margins.

Q: Operating Profit Margin of GSS Infotech Ltd?

GSS Infotech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.52% for FY-2025, which is above its 5-year median of 15.15% indicating increasing margins.

Q: Net Profit Margin of GSS Infotech Ltd?

GSS Infotech Ltd Net Profit Margin is 12.39% for FY-2025, is above its 5-year median of 3.93%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 16.9, Historic Median: 14.1. Operating Profit Margin (%), Current: 16.52, Historic Median: 15.15. Net Profit Margin (%), Current: 12.39, Historic Median: 3.93

Q: Return on Asset of GSS Infotech Ltd?

GSS Infotech Ltd Return on Asset is 0.26%, which is in line with its 5-year historical median of 0.26%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of GSS Infotech Ltd?

GSS Infotech Ltd Return on capital employed is 0.46% for FY-2025, which is below its 5-year historical median of 0.8%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : GSS Infotech Ltd

BSE: 532951 NSE: GSS ISIN: INE871H01011

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

Snapshot

Q.1 Which industry/sub-sector does GSS Infotech Ltd belong to?

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

Q.2 Is GSS Infotech Ltd a good quality company?

GSS Infotech Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is GSS Infotech Ltd undervalued or overvalued?

GSS Infotech Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	30.36	122.95
Price to Book	0.15	1.46
Price to Sales	4.05	17.00
EV to EBITDA	133.96	133.94

Q.4 Is GSS Infotech Ltd a good buy now?

GSS Infotech 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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of GSS Infotech Ltd?

GSS Infotech Ltd revenue growth is -19.4% for FY-2025, which is in line with its 5-year CAGR of -19.94%, indicating stable growth.

Q.2 Gross Profit margin of GSS Infotech Ltd?

GSS Infotech Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.9% for FY-2025, which is above its 5-year median of 14.1%, indicating increasing margins.

Q.3 Operating Profit Margin of GSS Infotech Ltd?

GSS Infotech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.52% for FY-2025, which is above its 5-year median of 15.15% indicating increasing margins.

Q.4 Net Profit Margin of GSS Infotech Ltd?

GSS Infotech Ltd Net Profit Margin is 12.39% for FY-2025, is above its 5-year median of 3.93%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	16.9	14.1
Operating Profit Margin (%)	16.52	15.15
Net Profit Margin (%)	12.39	3.93

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of GSS Infotech Ltd?

GSS Infotech Ltd Return on Asset is 0.26%, which is in line with its 5-year historical median of 0.26%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of GSS Infotech Ltd?

GSS Infotech Ltd Return on capital employed is 0.46% for FY-2025, which is below its 5-year historical median of 0.8%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of GSS Infotech Ltd?

GSS Infotech Ltd Return on equity is 0.46% for FY-2025, which is in line with its 5-year historical median of 0.46%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of GSS Infotech Ltd?

GSS Infotech Ltd Cash conversion cycle is -107 days, below its 5-year historical median of -1 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.02	0.13
ROE (%)	0.46	0.46
ROCE (%)	0.46	0.8
Cash Conversion Cycle	-107 days	-1 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of GSS Infotech Ltd?

GSS Infotech Ltd Debt-to-Equity ratio is 0.68, which is above the industry average of 0.01, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of GSS Infotech Ltd?

GSS Infotech Ltd Debt to cash flow from operations is -90.51, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of GSS Infotech Ltd?

Q.1 Promoter shareholding and pledge status of GSS Infotech Ltd?

Promoters hold 12.71% of the GSS Infotech Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does GSS Infotech Ltd performance compare with that of its Peers?

Q.1 Revenue growth of GSS Infotech Ltd vs industry peers?

GSS Infotech Ltd revenue CAGR is -19.94%, compared to the industry median CAGR of 2.48%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-19.4	2.5
Gross Profit Growth (%)	-3.2	18.3
Operating Profit Growth (%)	-23.7	18
Net Profit Growth (%)	254.8	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.02	0.46
ROE (%)	0.46	3.97
ROCE (%)	0.46	6.41
Cash Conversion Cycle (days)	-107.25	36

Valuation & price assessment

Q.1 Stock return of GSS Infotech Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -5.1% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-5.1%	-27.2%	-58.3%	-60.4%

Q.2 Valuation ratios of GSS Infotech Ltd vs historical?

The current P/E ratio of 30.36 is lower than its historical median of 122.95, indicating that the stock is trading below its historical average valuation.

Q.3 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	30.36	122.95	47.38
Price to Book	0.15	1.46	2.64
Price to Sales	4.05	17.00	4.79
EV to EBITDA	133.96	133.94	16.75

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Check Before You Invest : GSS Infotech Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

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