Check Before You Invest : Springform Technology Ltd

BSE: 501479 NSE: ISIN: INE02ZA01012

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

Snapshot

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

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

Q.2 Is Springform Technology Ltd a good quality company?

Springform Technology Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Springform Technology Ltd undervalued or overvalued?

Springform Technology Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Springform Technology Ltd a good buy now?

Springform Technology 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 Springform Technology Ltd?

Springform Technology Ltd revenue growth is -75.4% for FY-2025, which is below its 5-year CAGR of -27.52%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Springform Technology Ltd?

Springform Technology Ltd Return on capital employed is -188.36% for FY-2025, which is below its 5-year historical median of 15.36%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Springform Technology Ltd?

Springform Technology Ltd Return on Asset is -155.49%, which is below its 5-year historical median of 6.19%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Springform Technology Ltd?

Springform Technology Ltd Return on equity is -208.85% for FY-2025, which is below its 5-year historical median of 11.35%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Springform Technology Ltd?

Springform Technology Ltd Cash conversion cycle is 534 days, above its 5-year historical median of 160 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	0.22	0.63
ROE	-208.85	11.35
ROCE	-188.36	15.36
Cash Conversion Cycle	534 days	160 days

Q.6 Gross Profit margin of Springform Technology Ltd?

Springform Technology Ltd Gross profit margin which is the profit after deduction of direct costs, is -698.4% for FY-2025, which is below its 5-year median of 29%, indicating decreasing margins.

Q.7 Operating Profit Margin of Springform Technology Ltd?

Springform Technology Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -668.72% for FY-2025, which is below its 5-year median of 29.04% indicating decreasing margins.

Q.8 Net Profit Margin of Springform Technology Ltd?

Springform Technology Ltd Net Profit Margin is -707.15% for FY-2025, is below with its 5-year median of 9.88%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-698.4	29
Operating Profit Margin	-668.72	29.04
Net Profit Margin	-707.15	9.88

Q.9 Debt to Equity ratio of Springform Technology Ltd?

Springform Technology Ltd Debt-to-Equity ratio is -4.70, 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 Springform Technology Ltd?

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

Ownership & governance

Q.1 Promoter shareholding and pledge status of Springform Technology Ltd?

Promoters hold 74.71% of the Springform Technology Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Springform Technology Ltd vs industry peers?

Springform Technology Ltd revenue CAGR is -27.52%, compared to the industry median CAGR of 10.86%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-75.4	10.9
Gross Profit Growth	-2,080	19
Operating Profit Growth	-1,090	NAN
Net Profit Growth	0	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.22	0.5
ROE	-208.85	5.83
ROCE	-188.36	6.79
Cash Conversion Cycle (days)	534.04	47

Valuation & price assessment

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

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

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

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

Q.3 Valuation ratios of Springform Technology Ltd vs historical?

The current P/E is similar 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	-	-	47.37
Price to Book	2.05	2.05	2.63
Price to Sales	0.12	0.12	4.79
EV to EBITDA	0.61	0.61	16.48

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