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 10-year financial track record.

Q.3 Is Saksoft Ltd undervalued or overvalued?

Saksoft Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

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

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 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.3 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.4 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.5 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	1.15	1.03
ROE	23.55	17.38
ROCE	31.38	21.7
Cash Conversion Cycle	51 days	37 days

Q.6 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.7 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.8 Net Profit Margin of Saksoft Ltd?

Saksoft Ltd Net Profit Margin is 14.24% for FY-2025, is in line with 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

Q.9 Debt to Equity ratio of Saksoft Ltd?

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

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

Ownership & governance

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)

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

Saksoft Ltd revenue CAGR is 30.09%, 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	91.8	10.9
Gross Profit Growth	109.1	19
Operating Profit Growth	140	NAN
Net Profit Growth	96.8	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.15	0.5
ROE	23.55	5.83
ROCE	31.38	6.79
Cash Conversion Cycle (days)	51.27	47

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 23.2% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	23.2%	29.8%	-2.9%	-8.2%

Q.3 Valuation ratios of Saksoft Ltd vs historical?

The current P/E is lower 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	53.43	47.37
Price to Book	4.89	8.72	2.63
Price to Sales	3.83	7.79	4.79
EV to EBITDA	15.99	33.62	16.48

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