Check Before You Invest : B2B Software Technologies Ltd

BSE: 531268 NSE: ISIN: INE151B01011

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

Snapshot

Q.1 Which industry/sub-sector does B2B Software Technologies Ltd belong to?

B2B Software Technologies Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is B2B Software Technologies Ltd a good quality company?

B2B Software Technologies Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is B2B Software Technologies Ltd undervalued or overvalued?

B2B Software Technologies Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is B2B Software Technologies Ltd a good buy now?

B2B Software Technologies 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 B2B Software Technologies Ltd?

B2B Software Technologies Ltd revenue growth is 8.8% for FY-2025, which is above its 5-year CAGR of 7.47%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of B2B Software Technologies Ltd?

B2B Software Technologies Ltd Return on capital employed is 14.93% for FY-2025, which is in line with its 5-year historical median of 15.69%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of B2B Software Technologies Ltd?

B2B Software Technologies Ltd Return on Asset is 10.39%, which is below its 5-year historical median of 12.45%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of B2B Software Technologies Ltd?

B2B Software Technologies Ltd Return on equity is 11.89% for FY-2025, which is below its 5-year historical median of 13.85%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of B2B Software Technologies Ltd?

B2B Software Technologies Ltd Cash conversion cycle is 41 days, above its 5-year historical median of 36 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	0.65	0.73
ROE	11.89	13.85
ROCE	14.93	15.69
Cash Conversion Cycle	41 days	36 days

Q.6 Gross Profit margin of B2B Software Technologies Ltd?

B2B Software Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.9% for FY-2025, which is in line with its 5-year median of 20.8%, indicating stable margins.

Q.7 Operating Profit Margin of B2B Software Technologies Ltd?

B2B Software Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.62% for FY-2025, which is below its 5-year median of 12.86% indicating decreasing margins.

Q.8 Net Profit Margin of B2B Software Technologies Ltd?

B2B Software Technologies Ltd Net Profit Margin is 15.89% for FY-2025, is in line with with its 5-year median of 16.13%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	20.9	20.8
Operating Profit Margin	11.62	12.86
Net Profit Margin	15.89	16.13

Q.9 Debt to Equity ratio of B2B Software Technologies Ltd?

B2B Software Technologies Ltd Debt-to-Equity ratio is 0.00, 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 B2B Software Technologies Ltd?

B2B Software Technologies Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of B2B Software Technologies Ltd?

Promoters hold 59.59% of the B2B Software Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of B2B Software Technologies Ltd vs industry peers?

B2B Software Technologies Ltd revenue CAGR is 7.47%, 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	8.8	10.9
Gross Profit Growth	29.5	18.3
Operating Profit Growth	51.8	NAN
Net Profit Growth	39.5	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.65	0.5
ROE	11.89	5.83
ROCE	14.93	6.79
Cash Conversion Cycle (days)	40.64	47

Valuation & price assessment

Q.1 Stock return of B2B Software Technologies Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 13% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	13%	8.3%	12.4%	32.1%

Q.3 Valuation ratios of B2B Software Technologies Ltd vs historical?

The current P/E is higher 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	19.57	16.85	47.37
Price to Book	1.55	2.06	2.63
Price to Sales	2.8	2.51	4.79
EV to EBITDA	11.54	11.56	16.48

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