Check Before You Invest : Sahana System Ltd

Q: Which industry/sub-sector does Sahana System Ltd belong to?

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

Q: Is Sahana System Ltd a good quality company?

Sahana System Ltd is a average quality company, based on a somewhat consistent 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 Sahana System Ltd undervalued or overvalued?

Sahana System Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than 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: 41.95, Historic Median: 64.28. Price to Book, Current: 5.02, Historic Median: 9.37. Price to Sales, Current: 6.68, Historic Median: 11.48. EV to EBITDA, Current: 26.98, Historic Median: 43.38

Q: Is Sahana System Ltd a good buy now?

Sahana System 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 Sahana System Ltd?

Sahana System Ltd revenue growth is 102% for FY-2025, which is above its 5-year CAGR of 76.78%, indicating faster growth.

Q: Gross Profit margin of Sahana System Ltd?

Sahana System Ltd Gross profit margin which is the profit after deduction of direct costs, is 24% for FY-2025, which is in line with its 5-year median of 24%, indicating stable margins.

Q: Operating Profit Margin of Sahana System Ltd?

Sahana System Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 22.57% for FY-2025, which is below its 5-year median of 25.43% indicating decreasing margins.

Q: Net Profit Margin of Sahana System Ltd?

Sahana System Ltd Net Profit Margin is 15.93% for FY-2025, is in line with its 5-year median of 15.93%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 24, Historic Median: 24. Operating Profit Margin (%), Current: 22.57, Historic Median: 25.43. Net Profit Margin (%), Current: 15.93, Historic Median: 15.93

Q: Return on Asset of Sahana System Ltd?

Sahana System Ltd Return on Asset is 13.17%, which is in line with its 5-year historical median of 13.17%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Sahana System Ltd?

Sahana System Ltd Return on capital employed is 23.97% for FY-2025, which is below its 5-year historical median of 31.4%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Sahana System Ltd

BSE: 0 NSE: SAHANA ISIN: INE0LEX01011

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

Snapshot

Q.1 Which industry/sub-sector does Sahana System Ltd belong to?

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

Q.2 Is Sahana System Ltd a good quality company?

Sahana System Ltd is a average quality company, based on a somewhat consistent 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 Sahana System Ltd undervalued or overvalued?

Sahana System Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than 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	41.95	64.28
Price to Book	5.02	9.37
Price to Sales	6.68	11.48
EV to EBITDA	26.98	43.38

Q.4 Is Sahana System Ltd a good buy now?

Sahana System 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 Sahana System Ltd?

Sahana System Ltd revenue growth is 102% for FY-2025, which is above its 5-year CAGR of 76.78%, indicating faster growth.

Q.2 Gross Profit margin of Sahana System Ltd?

Sahana System Ltd Gross profit margin which is the profit after deduction of direct costs, is 24% for FY-2025, which is in line with its 5-year median of 24%, indicating stable margins.

Q.3 Operating Profit Margin of Sahana System Ltd?

Sahana System Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 22.57% for FY-2025, which is below its 5-year median of 25.43% indicating decreasing margins.

Q.4 Net Profit Margin of Sahana System Ltd?

Sahana System Ltd Net Profit Margin is 15.93% for FY-2025, is in line with its 5-year median of 15.93%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	24	24
Operating Profit Margin (%)	22.57	25.43
Net Profit Margin (%)	15.93	15.93

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Sahana System Ltd?

Sahana System Ltd Return on Asset is 13.17%, which is in line with its 5-year historical median of 13.17%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Sahana System Ltd?

Sahana System Ltd Return on capital employed is 23.97% for FY-2025, which is below its 5-year historical median of 31.4%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Sahana System Ltd?

Sahana System Ltd Return on equity is 17.5% for FY-2025, which is below its 5-year historical median of 60.14%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Sahana System Ltd?

Sahana System Ltd Cash conversion cycle is 80 days, below its 5-year historical median of 178 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)	0.83	0.95
ROE (%)	17.5	60.14
ROCE (%)	23.97	31.4
Cash Conversion Cycle	80 days	178 days

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

Q.9 Debt to Equity ratio of Sahana System Ltd?

Sahana System Ltd Debt-to-Equity ratio is 0.03, 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 Sahana System Ltd?

Sahana System Ltd Debt to cash flow from operations is -0.22, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Sahana System Ltd?

Q.1 Promoter shareholding and pledge status of Sahana System Ltd?

Promoters hold 57.31% of the Sahana System Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Sahana System Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Sahana System Ltd vs industry peers?

Sahana System Ltd revenue CAGR is 76.78%, compared to the industry median CAGR of 3.17%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	102	3.2
Gross Profit Growth (%)	36.8	18.4
Operating Profit Growth (%)	26.3	18.8
Net Profit Growth (%)	13.3	21.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.83	0.46
ROE (%)	17.5	4.22
ROCE (%)	23.97	6.49
Cash Conversion Cycle (days)	80.45	36

Valuation & price assessment

Q.1 Stock return of Sahana System Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -40.95% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-41%

Q.2 Valuation ratios of Sahana System Ltd vs historical?

The current P/E ratio of 41.95 is lower than its historical median of 64.28, 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	41.95	64.28	47.38
Price to Book	5.02	9.37	2.64
Price to Sales	6.68	11.48	4.79
EV to EBITDA	26.98	43.38	16.75

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Check Before You Invest : Sahana System Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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