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INVESTMENT INSIGHTS

Check Before You Invest : ERP Soft Systems Ltd

BSE: 530909 NSE: ISIN: INE308B01017
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does ERP Soft Systems Ltd belong to?
ERP Soft Systems Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is ERP Soft Systems Ltd a good quality company?
ERP Soft Systems Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is ERP Soft Systems Ltd undervalued or overvalued?
ERP Soft Systems Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is ERP Soft Systems Ltd a good buy now?
ERP Soft Systems 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 ERP Soft Systems Ltd?
ERP Soft Systems Ltd revenue growth is -27.2% for FY-2025 , which is below its 5 year CAGR of 9.8% , indicating slower growth.
Q.2 Gross Profit margin of ERP Soft Systems Ltd?
ERP Soft Systems Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.3% for FY-2025 , which is above its 5 year median of 8.2% , indicating increasing margins.
Q.3 Operating Profit Margin of ERP Soft Systems Ltd?
ERP Soft Systems Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.32% for FY-2025 , which is above its 5 year median of 8.66% indicating increasing margins.
Q.4 Net Profit Margin of ERP Soft Systems Ltd?
ERP Soft Systems Ltd Net Profit Margin is 6.29% for FY-2025 , is above with its 5 year median of 4.42%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 13.3 8.2
Operating Profit Margin 9.32 8.66
Net Profit Margin 6.29 4.42
Q.5 Return on Asset of ERP Soft Systems Ltd?
ERP Soft Systems Ltd Return on Asset is 1.3%, which is above its 5 year historical median of 1.27%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of ERP Soft Systems Ltd?
ERP Soft Systems Ltd Return on equity is 1.32% for FY-2025 , which is above its historical median of 1.29%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of ERP Soft Systems Ltd?
ERP Soft Systems Ltd Return on capital employed is 2.82% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of ERP Soft Systems Ltd?
ERP Soft Systems Ltd Cash conversion cycle is 97 days, above its historical median of 68 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.21 0.29
ROE 1.32 1.29
ROCE 2.82 2.04
Cash Conversion Cycle 97 days 68 days
Q.9 Debt to Equity ratio of ERP Soft Systems Ltd?
ERP Soft Systems Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.01 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of ERP Soft Systems Ltd?
ERP Soft Systems 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 ERP Soft Systems Ltd?
Promoters hold 55.76% of the ERP Soft Systems Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of ERP Soft Systems Ltd vs industry peers?
ERP Soft Systems Ltd revenue CAGR is 9.83% , compared to the industry median CAGR of 2.87% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 1.6 23.3
Gross Profit 0.2 1.8
Operating Profit 0.1 1
Net Profit 0.1 0.8
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.21 0.44
ROE 1.32 3.97
ROCE 2.82 6.41
Cash Conversion Cycle (days) 97.03 36

Valuation & price assessment

Q.1 Stock return of ERP Soft Systems Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -1.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price -1.8% 5.3% -10.6% -53.1%
Q.3 Valuation ratios of ERP Soft Systems Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 207.9 180.03 22.96
Price to Book 3.09 3.88 2.61
Price to Sales 23.15 10.32 4.40
EV to EBITDA 120.46 111.00 17.20

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8. Nazara Technologies
9. Intellect Design
10. Sonata Software
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