Check Before You Invest : Saksoft Ltd

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

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

Q: Is Saksoft Ltd a good quality company?

Saksoft Ltd is a good quality company, based on a consistently good 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 Saksoft Ltd undervalued or overvalued?

Saksoft 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: 25.37, Historic Median: 53.43. Price to Book, Current: 4.77, Historic Median: 8.72. Price to Sales, Current: 3.74, Historic Median: 7.79. EV to EBITDA, Current: 15.6, Historic Median: 33.62

Q: Is Saksoft Ltd a good buy now?

Saksoft 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

Q: Revenue growth of Saksoft Ltd?

Saksoft Ltd revenue growth is 91.8% for FY-2025, which is above its 5-year CAGR of 30.09%, indicating faster growth.

Q: Gross Profit margin of Saksoft Ltd?

Saksoft Ltd Gross profit margin which is the profit after deduction of direct costs, is 21.4% for FY-2025, which is in line with its 5-year median of 21.4%, indicating stable margins.

Q: Operating Profit Margin of Saksoft Ltd?

Saksoft Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.45% for FY-2025, which is above its 5-year median of 17.56% indicating increasing margins.

Q: Net Profit Margin of Saksoft Ltd?

Saksoft Ltd Net Profit Margin is 14.24% for FY-2025, is in line with its 5-year median of 14.24%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 21.4, Historic Median: 21.4. Operating Profit Margin (%), Current: 19.45, Historic Median: 17.56. Net Profit Margin (%), Current: 14.24, Historic Median: 14.24

Q: Return on Asset of Saksoft Ltd?

Saksoft Ltd Return on Asset is 16.43%, which is above its 5-year historical median of 14.73%, indicating improved asset utilization efficiency.

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

Saksoft Ltd Return on capital employed is 31.38% for FY-2025, which is above its 5-year historical median of 21.7%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Saksoft Ltd

BSE: 590051 NSE: SAKSOFT ISIN: INE667G01023

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

Snapshot

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

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

Q.2 Is Saksoft Ltd a good quality company?

Saksoft Ltd is a good quality company, based on a consistently good 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 Saksoft Ltd undervalued or overvalued?

Saksoft 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	25.37	53.43
Price to Book	4.77	8.72
Price to Sales	3.74	7.79
EV to EBITDA	15.6	33.62

Q.4 Is Saksoft Ltd a good buy now?

Saksoft 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

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 Saksoft Ltd?

Saksoft Ltd revenue growth is 91.8% for FY-2025, which is above its 5-year CAGR of 30.09%, indicating faster growth.

Q.2 Gross Profit margin of Saksoft Ltd?

Saksoft Ltd Gross profit margin which is the profit after deduction of direct costs, is 21.4% for FY-2025, which is in line with its 5-year median of 21.4%, indicating stable margins.

Q.3 Operating Profit Margin of Saksoft Ltd?

Saksoft Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.45% for FY-2025, which is above its 5-year median of 17.56% indicating increasing margins.

Q.4 Net Profit Margin of Saksoft Ltd?

Saksoft Ltd Net Profit Margin is 14.24% for FY-2025, is in line with its 5-year median of 14.24%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	21.4	21.4
Operating Profit Margin (%)	19.45	17.56
Net Profit Margin (%)	14.24	14.24

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Saksoft Ltd?

Saksoft Ltd Return on Asset is 16.43%, which is above its 5-year historical median of 14.73%, indicating improved asset utilization efficiency.

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

Saksoft Ltd Return on capital employed is 31.38% for FY-2025, which is above its 5-year historical median of 21.7%. 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 Saksoft Ltd?

Saksoft Ltd Return on equity is 23.55% for FY-2025, which is above its 5-year historical median of 17.38%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Saksoft Ltd?

Saksoft Ltd Cash conversion cycle is 51 days, above its 5-year historical median of 37 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 (x)	1.15	1.03
ROE (%)	23.55	17.38
ROCE (%)	31.38	21.7
Cash Conversion Cycle	51 days	37 days

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

Q.9 Debt to Equity ratio of Saksoft Ltd?

Saksoft Ltd Debt-to-Equity ratio is 0.06, 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 Saksoft Ltd?

Saksoft Ltd Debt to cash flow from operations is 0.39, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Saksoft Ltd?

Q.1 Promoter shareholding and pledge status of Saksoft Ltd?

Promoters hold 66.68% of the Saksoft Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Saksoft Ltd vs industry peers?

Saksoft Ltd revenue CAGR is 30.09%, compared to the industry median CAGR of 2.48%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	91.8	2.5
Gross Profit Growth (%)	109.1	18.3
Operating Profit Growth (%)	140	18
Net Profit Growth (%)	96.8	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.15	0.46
ROE (%)	23.55	3.97
ROCE (%)	31.38	6.41
Cash Conversion Cycle (days)	51.27	36

Valuation & price assessment

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

Over the last 9 year(s), the stock has delivered a CAGR of 23.3% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	23.3%	28.7%	-6.2%	-18.6%

Q.2 Valuation ratios of Saksoft Ltd vs historical?

The current P/E ratio of 25.37 is lower than its historical median of 53.43, 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	25.37	53.43	47.38
Price to Book	4.77	8.72	2.64
Price to Sales	3.74	7.79	4.79
EV to EBITDA	15.6	33.62	16.75

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Check Before You Invest : Saksoft Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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