Check Before You Invest : Micropro Software Solutions Ltd

Snapshot

Q.1 Which industry/sub-sector does Micropro Software Solutions Ltd belong to?

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

Q.2 Is Micropro Software Solutions Ltd a good quality company?

Micropro Software Solutions Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Micropro Software Solutions Ltd undervalued or overvalued?

Micropro Software Solutions Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Micropro Software Solutions Ltd a good buy now?

Micropro Software Solutions 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 Micropro Software Solutions Ltd?

Micropro Software Solutions Ltd revenue growth is -5.4% for FY-2025, which is below its 5-year CAGR of 10.86%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Micropro Software Solutions Ltd?

Micropro Software Solutions Ltd Return on capital employed is -1.79% for FY-2025, which is below its 5-year historical median of 18.31%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Micropro Software Solutions Ltd?

Micropro Software Solutions Ltd Return on Asset is -1.95%, which is below its 5-year historical median of 9.82%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Micropro Software Solutions Ltd?

Micropro Software Solutions Ltd Return on equity is -2.23% for FY-2025, which is below its 5-year historical median of 18.59%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Micropro Software Solutions Ltd?

Micropro Software Solutions Ltd Cash conversion cycle is 217 days, above its 5-year historical median of 118 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	0.38	0.93
ROE	-2.23	18.59
ROCE	-1.79	18.31
Cash Conversion Cycle	217 days	118 days

Q.6 Gross Profit margin of Micropro Software Solutions Ltd?

Micropro Software Solutions Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.3% for FY-2025, which is below its 5-year median of 23%, indicating decreasing margins.

Q.7 Operating Profit Margin of Micropro Software Solutions Ltd?

Micropro Software Solutions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -2.91% for FY-2025, which is below its 5-year median of 23.96% indicating decreasing margins.

Q.8 Net Profit Margin of Micropro Software Solutions Ltd?

Micropro Software Solutions Ltd Net Profit Margin is -5.15% for FY-2025, is below with its 5-year median of 14.47%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	4.3	23
Operating Profit Margin	-2.91	23.96
Net Profit Margin	-5.15	14.47

Q.9 Debt to Equity ratio of Micropro Software Solutions Ltd?

Micropro Software Solutions 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 Micropro Software Solutions Ltd?

Micropro Software Solutions 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 Micropro Software Solutions Ltd?

Promoters hold 46.63% of the Micropro Software Solutions Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Micropro Software Solutions Ltd vs industry peers?

Micropro Software Solutions Ltd revenue CAGR is 10.86%, compared to the industry median CAGR of 10.86%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-5.4	10.9
Gross Profit Growth	-83.7	19
Operating Profit Growth	-111.2	NAN
Net Profit Growth	-133.8	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.38	0.5
ROE	-2.23	5.83
ROCE	-1.79	6.79
Cash Conversion Cycle (days)	217.06	47

Valuation & price assessment

Q.1 Stock return of Micropro Software Solutions Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -21.88% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-21.9%

Q.3 Valuation ratios of Micropro Software Solutions 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	-	14.09	47.37
Price to Book	0.58	0.97	2.63
Price to Sales	1.32	2.14	4.79
EV to EBITDA	11.75	9.77	16.48

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