Check Before You Invest : California Software Company Ltd

Q: Which industry/sub-sector does California Software Company Ltd belong to?

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

Q: Is California Software Company Ltd a good quality company?

California Software Company Ltd is a weak quality company, based on a inconsistent 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 California Software Company Ltd undervalued or overvalued?

California Software Company Ltd appears Fair, as its key valuation ratios are in line with 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: 13.85, Historic Median: 42.19. Price to Book, Current: 2.01, Historic Median: 1.76. Price to Sales, Current: 7.49, Historic Median: 7.88. EV to EBITDA, Current: 9.59, Historic Median: 25.94

Q: Is California Software Company Ltd a good buy now?

California Software Company Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of California Software Company Ltd?

California Software Company Ltd revenue growth is 27.3% for FY-2025, which is below its 5-year CAGR of 35.8%, indicating slower growth.

Q: Gross Profit margin of California Software Company Ltd?

California Software Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 28.7% for FY-2025, which is below its 5-year median of 38.4%, indicating decreasing margins.

Q: Operating Profit Margin of California Software Company Ltd?

California Software Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 28.85% for FY-2025, which is below its 5-year median of 43.28% indicating decreasing margins.

Q: Net Profit Margin of California Software Company Ltd?

California Software Company Ltd Net Profit Margin is 13.21% for FY-2025, is in line with its 5-year median of 13.36%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 28.7, Historic Median: 38.4. Operating Profit Margin (%), Current: 28.85, Historic Median: 43.28. Net Profit Margin (%), Current: 13.21, Historic Median: 13.36

Q: Return on Asset of California Software Company Ltd?

California Software Company Ltd Return on Asset is 2.6%, which is above its 5-year historical median of 2.36%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of California Software Company Ltd?

California Software Company Ltd Return on capital employed is 3.86% for FY-2025, which is in line with its 5-year historical median of 3.8%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : California Software Company Ltd

BSE: 532386 NSE: CALSOFT ISIN: INE526B01014

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

Snapshot

Q.1 Which industry/sub-sector does California Software Company Ltd belong to?

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

Q.2 Is California Software Company Ltd a good quality company?

California Software Company Ltd is a weak quality company, based on a inconsistent 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 California Software Company Ltd undervalued or overvalued?

California Software Company Ltd appears Fair, as its key valuation ratios are in line with 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	13.85	42.19
Price to Book	2.01	1.76
Price to Sales	7.49	7.88
EV to EBITDA	9.59	25.94

Q.4 Is California Software Company Ltd a good buy now?

California Software Company Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 California Software Company Ltd?

California Software Company Ltd revenue growth is 27.3% for FY-2025, which is below its 5-year CAGR of 35.8%, indicating slower growth.

Q.2 Gross Profit margin of California Software Company Ltd?

California Software Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 28.7% for FY-2025, which is below its 5-year median of 38.4%, indicating decreasing margins.

Q.3 Operating Profit Margin of California Software Company Ltd?

California Software Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 28.85% for FY-2025, which is below its 5-year median of 43.28% indicating decreasing margins.

Q.4 Net Profit Margin of California Software Company Ltd?

California Software Company Ltd Net Profit Margin is 13.21% for FY-2025, is in line with its 5-year median of 13.36%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	28.7	38.4
Operating Profit Margin (%)	28.85	43.28
Net Profit Margin (%)	13.21	13.36

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of California Software Company Ltd?

California Software Company Ltd Return on Asset is 2.6%, which is above its 5-year historical median of 2.36%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of California Software Company Ltd?

California Software Company Ltd Return on capital employed is 3.86% for FY-2025, which is in line with its 5-year historical median of 3.8%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of California Software Company Ltd?

California Software Company Ltd Return on equity is 3.42% for FY-2025, which is in line with its 5-year historical median of 3.42%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of California Software Company Ltd?

California Software Company Ltd Cash conversion cycle is 1054 days, in line with its 5-year historical median of 1054 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.2	0.16
ROE (%)	3.42	3.42
ROCE (%)	3.86	3.8
Cash Conversion Cycle	1054 days	1054 days

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

Q.9 Debt to Equity ratio of California Software Company Ltd?

California Software Company Ltd Debt-to-Equity ratio is 0.03, 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 California Software Company Ltd?

California Software Company Ltd Debt to cash flow from operations is -0.39, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of California Software Company Ltd?

Q.1 Promoter shareholding and pledge status of California Software Company Ltd?

Promoters hold 62.26% of the California Software Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does California Software Company Ltd performance compare with that of its Peers?

Q.1 Revenue growth of California Software Company Ltd vs industry peers?

California Software Company Ltd revenue CAGR is 35.80%, compared to the industry median CAGR of 3.17%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	27.3	3.2
Gross Profit Growth (%)	-	18.4
Operating Profit Growth (%)	-	18.8
Net Profit Growth (%)	-	21.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.2	0.46
ROE (%)	3.42	4.22
ROCE (%)	3.86	6.49
Cash Conversion Cycle (days)	1054.19	36

Valuation & price assessment

Q.1 Stock return of California Software Company Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 16.5% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	16.5%	35.4%	39%	125.3%

Q.2 Valuation ratios of California Software Company Ltd vs historical?

The current P/E ratio of 13.85 is lower than its historical median of 42.19, 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	13.85	42.19	47.38
Price to Book	2.01	1.76	2.64
Price to Sales	7.49	7.88	4.79
EV to EBITDA	9.59	25.94	16.75

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Check Before You Invest : California Software Company Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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