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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 10 year financial track record.
Q.3 Is Sahana System Ltd undervalued or overvalued?
Sahana System Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
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

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 76.8% , 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 with its 5 year median of 15.93%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 24 24
Operating Profit Margin 22.57 25.43
Net Profit Margin 15.93 15.93
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 Equity (ROE) of Sahana System Ltd?
Sahana System Ltd Return on equity is 17.5% for FY-2025 , which is below its historical median of 60.14%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Sahana System Ltd?
Sahana System Ltd Return on capital employed is 23.97% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Sahana System Ltd?
Sahana System Ltd Cash conversion cycle is 80 days, below its historical median of 178 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.83 0.95
ROE 17.5 60.14
ROCE 23.97 31.4
Cash Conversion Cycle 80 days 178 days
Q.9 Debt to Equity ratio of Sahana System Ltd?
Sahana System 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 Sahana System Ltd?
Sahana System Ltd Debt to cash flow from operations is -0.22 , 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 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)

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 2.48% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 108.4 23.6
Gross Profit 25.9 1.9
Operating Profit 24 1.2
Net Profit 17 0.8
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.83 0.45
ROE 17.5 4.09
ROCE 23.97 6.4
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 -37.35% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - - -37.4%
Q.3 Valuation ratios of Sahana System Ltd vs historical?
The current P/E is lower 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 44.56 57.08 22.96
Price to Book 5.34 16.95 2.61
Price to Sales 7.1 30.56 4.40
EV to EBITDA 28.7 76.73 17.20

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