SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Hypersoft Technologies Ltd

BSE: 539724 NSE: ISIN: INE039D01014
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does Hypersoft Technologies Ltd belong to?
Hypersoft Technologies Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is Hypersoft Technologies Ltd a good quality company?
Hypersoft Technologies 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 Hypersoft Technologies Ltd undervalued or overvalued?
Hypersoft Technologies Ltd appears Overvalued, as its key valuation ratios are higher than 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 388.73 -
Price to Book 5.38 2.36
Price to Sales 38.72 5.09
EV to EBITDA 287.78 -6.90
Q.4 Is Hypersoft Technologies Ltd a good buy now?
Hypersoft 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

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 Hypersoft Technologies Ltd?
Hypersoft Technologies Ltd revenue growth is 869.9% for FY-2025, which is above its 5-year CAGR of 59.49%, indicating faster growth.

Q.2 Gross Profit margin of Hypersoft Technologies Ltd?
Hypersoft Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 6% for FY-2025, which is in line with its 5-year median of 6%, indicating stable margins.

Q.3 Operating Profit Margin of Hypersoft Technologies Ltd?
Hypersoft Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.73% for FY-2025, which is above its 5-year median of -5.59% indicating increasing margins.

Q.4 Net Profit Margin of Hypersoft Technologies Ltd?
Hypersoft Technologies Ltd Net Profit Margin is 2.56% for FY-2025, is above its 5-year median of 1.03%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 6 6
Operating Profit Margin (%) 5.73 -5.59
Net Profit Margin (%) 2.56 1.03

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Hypersoft Technologies Ltd?
Hypersoft Technologies Ltd Return on Asset is 7.06%, which is above its 5-year historical median of 0.26%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Hypersoft Technologies Ltd?
Hypersoft Technologies Ltd Return on capital employed is 20.58% for FY-2025, which is above its 5-year historical median of 2.49%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Hypersoft Technologies Ltd?
Hypersoft Technologies Ltd Return on equity is 9.93% for FY-2025, which is above its 5-year historical median of 0.45%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Hypersoft Technologies Ltd?
Hypersoft Technologies Ltd Cash conversion cycle is 14 days, below its 5-year historical median of 175 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 2.75 0.26
ROE (%) 9.93 0.45
ROCE (%) 20.58 2.49
Cash Conversion Cycle 14 days 175 days

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

Q.9 Debt to Equity ratio of Hypersoft Technologies Ltd?
Hypersoft Technologies Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.01, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Hypersoft Technologies Ltd?
Hypersoft Technologies Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Hypersoft Technologies Ltd?

Q.1 Promoter shareholding and pledge status of Hypersoft Technologies Ltd?
Promoters hold 59.24% of the Hypersoft Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Hypersoft Technologies Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Hypersoft Technologies Ltd vs industry peers?
Hypersoft Technologies Ltd revenue CAGR is 59.49%, 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 (%) 869.9 3.2
Gross Profit Growth (%) 0 18.4
Operating Profit Growth (%) 0 18.8
Net Profit Growth (%) 0 21.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 2.75 0.46
ROE (%) 9.93 4.22
ROCE (%) 20.58 6.49
Cash Conversion Cycle (days) 13.97 36

Valuation & price assessment

Q.1 Stock return of Hypersoft Technologies Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 30.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
30.5% 101% 136.3% 575.5%
Q.2 Valuation ratios of Hypersoft Technologies Ltd vs historical?
The current P/E ratio of 388.73 is higher than its historical median of , indicating that the stock is trading above 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 388.73 - 47.38
Price to Book 5.38 2.36 2.64
Price to Sales 38.72 5.09 4.79
EV to EBITDA 287.78 -6.90 16.75

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×