Check Before You Invest : Lee & Nee Softwares (Exports) Ltd

BSE: 517415 NSE: ISIN: INE791B01014

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

Snapshot

Q.1 Which industry/sub-sector does Lee & Nee Softwares (Exports) Ltd belong to?

Lee & Nee Softwares (Exports) Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Lee & Nee Softwares (Exports) Ltd a good quality company?

Lee & Nee Softwares (Exports) Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Lee & Nee Softwares (Exports) Ltd undervalued or overvalued?

Lee & Nee Softwares (Exports) Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Lee & Nee Softwares (Exports) Ltd a good buy now?

Lee & Nee Softwares (Exports) 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 Lee & Nee Softwares (Exports) Ltd?

Lee & Nee Softwares (Exports) Ltd revenue growth is 27.6% for FY-2025, which is above its 5-year CAGR of 19.75%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Lee & Nee Softwares (Exports) Ltd?

Lee & Nee Softwares (Exports) Ltd Return on capital employed is 1.04% for FY-2025, which is above its 5-year historical median of 0.48%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Lee & Nee Softwares (Exports) Ltd?

Lee & Nee Softwares (Exports) Ltd Return on Asset is 0.68%, which is above its 5-year historical median of 0.33%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Lee & Nee Softwares (Exports) Ltd?

Lee & Nee Softwares (Exports) Ltd Return on equity is 0.7% for FY-2025, which is above its 5-year historical median of 0.34%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Lee & Nee Softwares (Exports) Ltd?

Lee & Nee Softwares (Exports) Ltd Cash conversion cycle is -18 days, above its 5-year historical median of -22 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	0.18	0.11
ROE	0.7	0.34
ROCE	1.04	0.48
Cash Conversion Cycle	-18 days	-22 days

Q.6 Gross Profit margin of Lee & Nee Softwares (Exports) Ltd?

Lee & Nee Softwares (Exports) Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.8% for FY-2025, which is above its 5-year median of 5.1%, indicating increasing margins.

Q.7 Operating Profit Margin of Lee & Nee Softwares (Exports) Ltd?

Lee & Nee Softwares (Exports) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -4.11% for FY-2025, which is above its 5-year median of -6.49% indicating increasing margins.

Q.8 Net Profit Margin of Lee & Nee Softwares (Exports) Ltd?

Lee & Nee Softwares (Exports) Ltd Net Profit Margin is 3.75% for FY-2025, is above with its 5-year median of 3.36%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	6.8	5.1
Operating Profit Margin	-4.11	-6.49
Net Profit Margin	3.75	3.36

Q.9 Debt to Equity ratio of Lee & Nee Softwares (Exports) Ltd?

Lee & Nee Softwares (Exports) 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 Lee & Nee Softwares (Exports) Ltd?

Lee & Nee Softwares (Exports) Ltd Debt to cash flow from operations is -0.01, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Lee & Nee Softwares (Exports) Ltd?

Promoters hold 69.78% of the Lee & Nee Softwares (Exports) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Lee & Nee Softwares (Exports) Ltd vs industry peers?

Lee & Nee Softwares (Exports) Ltd revenue CAGR is 19.75%, 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	27.6	10.9
Gross Profit Growth	25.5	19
Operating Profit Growth	0	NAN
Net Profit Growth	14.7	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.18	0.5
ROE	0.7	5.83
ROCE	1.04	6.79
Cash Conversion Cycle (days)	-17.56	47

Valuation & price assessment

Q.1 Stock return of Lee & Nee Softwares (Exports) Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 15.9% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	15.9%	26.6%	5.2%	-7.9%

Q.3 Valuation ratios of Lee & Nee Softwares (Exports) 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	120.84	190.48	47.37
Price to Book	0.81	0.98	2.63
Price to Sales	4.39	7.07	4.79
EV to EBITDA	64.2	119.32	16.48

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