Check Before You Invest : KSolves India Ltd

BSE: 543599 NSE: KSOLVES ISIN: INE0D6I01023

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

Snapshot

Q.1 Which industry/sub-sector does KSolves India Ltd belong to?

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

Q.2 Is KSolves India Ltd a good quality company?

KSolves India Ltd is a good quality company, based on a consistently good 8-year financial track record.

Q.3 Is KSolves India Ltd undervalued or overvalued?

KSolves India Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is KSolves India Ltd a good buy now?

KSolves India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of KSolves India Ltd?

KSolves India Ltd revenue growth is 27% for FY-2025, which is below its 5-year CAGR of 75.94%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of KSolves India Ltd?

KSolves India Ltd Return on capital employed is 171.63% for FY-2025, which is in line with its 5-year historical median of 170.37%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of KSolves India Ltd?

KSolves India Ltd Return on Asset is 73.06%, which is below its 5-year historical median of 88.03%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of KSolves India Ltd?

KSolves India Ltd Return on equity is 153.12% for FY-2025, which is above its 5-year historical median of 128.29%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of KSolves India Ltd?

KSolves India Ltd Cash conversion cycle is 48 days, in line with its 5-year historical median of 48 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	2.88	2.76
ROE	153.12	128.29
ROCE	171.63	170.37
Cash Conversion Cycle	48 days	48 days

Q.6 Gross Profit margin of KSolves India Ltd?

KSolves India Ltd Gross profit margin which is the profit after deduction of direct costs, is 35.3% for FY-2025, which is below its 5-year median of 43.3%, indicating decreasing margins.

Q.7 Operating Profit Margin of KSolves India Ltd?

KSolves India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 35.58% for FY-2025, which is below its 5-year median of 43.05% indicating decreasing margins.

Q.8 Net Profit Margin of KSolves India Ltd?

KSolves India Ltd Net Profit Margin is 25.34% for FY-2025, is below with its 5-year median of 32.25%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	35.3	43.3
Operating Profit Margin	35.58	43.05
Net Profit Margin	25.34	32.25

Q.9 Debt to Equity ratio of KSolves India Ltd?

KSolves India Ltd Debt-to-Equity ratio is 0.42, which is above with the industry average of 0.11, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of KSolves India Ltd?

KSolves India Ltd Debt to cash flow from operations is 0.26, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of KSolves India Ltd?

Promoters hold 58.92% of the KSolves India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of KSolves India Ltd vs industry peers?

KSolves India Ltd revenue CAGR is 75.94%, compared to the industry median CAGR of 10.86%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	27	10.9
Gross Profit Growth	2.1	18.3
Operating Profit Growth	4.4	NAN
Net Profit Growth	2.9	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	2.88	0.5
ROE	153.12	5.83
ROCE	171.63	6.79
Cash Conversion Cycle (days)	47.61	47

Valuation & price assessment

Q.1 Stock return of KSolves India Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of -22.04% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-22%	-4.8%	-12.8%

Q.3 Valuation ratios of KSolves India Ltd vs historical?

The current P/E is lower 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	21.03	29.56	47.37
Price to Book	24.06	28.68	2.63
Price to Sales	4.33	9.49	4.79
EV to EBITDA	14.43	21.53	16.48

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