Check Before You Invest : Softrak Venture Investment Ltd

BSE: 531529 NSE: ISIN: INE562E01021

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does Softrak Venture Investment Ltd belong to?

Softrak Venture Investment Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is Softrak Venture Investment Ltd a good quality company?

Softrak Venture Investment Ltd is a quality company, based on a 7-year financial track record.

Q.3 Is Softrak Venture Investment Ltd undervalued or overvalued?

Softrak Venture Investment Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Softrak Venture Investment Ltd a good buy now?

Softrak Venture Investment 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 Total Income growth of Softrak Venture Investment Ltd?

Softrak Venture Investment Ltd Operating Income growth is 4333.33% for FY-2025, which is above its 5-year CAGR of 205.48%, indicating faster growth.

Q.2 Return on Assets of Softrak Venture Investment Ltd?

Softrak Venture Investment Ltd Return on Asset is 0.8%, which is above its 5-year historical median of 0.2%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	13.47	13.47
PPOP%	-78.79	-78.79
RoA%	0.8	0.2

Q.3 Return on Equity (ROE) of Softrak Venture Investment Ltd?

Softrak Venture Investment Ltd Return on Equity is 0.8% for FY-2025, which is above its 5-year historical median of 0.2%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Softrak Venture Investment Ltd?

Softrak Venture Investment Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -78.79% for FY-2025, which is in line with its 5-year median(-78.79%), indicating stable margins.

Q.5 Net Profit Margin of Softrak Venture Investment Ltd?

Softrak Venture Investment Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 13.47% for FY-2025, which is in line with its 5-year median( 13.47%), indicating stable margins.

Q.6 Total Asset growth of Softrak Venture Investment Ltd?

Softrak Venture Investment Ltd Total Asset growth is 2.69% for FY-2025, which is above its 5-year CAGR of 1.77%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Softrak Venture Investment Ltd?

Promoters hold 0.00% of the Softrak Venture Investment Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Softrak Venture Investment Ltd vs Industry Peers?

Softrak Venture Investment Ltd AUM CAGR is 1.77%, compared to the 5-year industry median CAGR of 9.45%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Softrak Venture Investment Ltd vs industry peers

Softrak Venture Investment Ltd profit metrics are in line with the industry median level of -0.88%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	13.47	9.95
PPOP%	-78.79	-13.4
RoA%	0.8	0.8

Q.3 Operating efficiency of Softrak Venture Investment Ltd vs industry peers?

Softrak Venture Investment Ltd ROCE (0.2) is below the industry median of (1.9); while the current ROE (0.2) are below than the 5-year average Industry ROE (1.2). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	13.47	9.95
PPOP%	-78.79	-13.4
RoA%	0.8	0.8
ROCE%	1.3	1.9
ROE%	0.8	1.2

Valuation & price assessment

Q.1 Stock return of Softrak Venture Investment Ltd over the last decade?

Over the last 3 years, the stock has delivered a CAGR of 38.4% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	38.4%	-42%

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	210.2	71.05	33.72
Price to Book	1.63	1.61	0.94
Price to Sales	28.3	51.72	12.44
EV to EBITDA	128.29	61.79	9.97

Q.4 Valuation ratios of Softrak Venture Investment Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 1.63% is higher than its historical median of 1.61%, indicating that at the current price the stock is overvalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Softrak Venture Investment Ltd return on invested capital (ROIC) is 0.79% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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