Check Before You Invest : Sagarsoft (India) Ltd

Snapshot

Q.1 Which industry/sub-sector does Sagarsoft (India) Ltd belong to?

Sagarsoft (India) Ltd belongs to the Miscellaneous sector, operating specifically within the Professional Services segment.

Q.2 Is Sagarsoft (India) Ltd a good quality company?

Sagarsoft (India) Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Sagarsoft (India) Ltd undervalued or overvalued?

Sagarsoft (India) Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Sagarsoft (India) Ltd a good buy now?

Sagarsoft (India) 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 Sagarsoft (India) Ltd?

Sagarsoft (India) Ltd revenue growth is 2.9% for FY-2025, which is below its 5-year CAGR of 9.08%, indicating slower growth.

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

Sagarsoft (India) Ltd Return on capital employed is 9.9% for FY-2025, which is below its 5-year historical median of 10.72%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Sagarsoft (India) Ltd?

Sagarsoft (India) Ltd Return on Asset is 5.38%, which is in line with its 5-year historical median of 5.64%, indicating stable asset utilization efficiency.

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

Sagarsoft (India) Ltd Return on equity is 6.63% for FY-2025, which is below its 5-year historical median of 7.06%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Sagarsoft (India) Ltd?

Sagarsoft (India) Ltd Cash conversion cycle is 97 days, in line with its 5-year historical median of 97 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	0.84	0.84
ROE	6.63	7.06
ROCE	9.9	10.72
Cash Conversion Cycle	97 days	97 days

Q.6 Gross Profit margin of Sagarsoft (India) Ltd?

Sagarsoft (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.9% for FY-2025, which is in line with its 5-year median of 12.5%, indicating stable margins.

Q.7 Operating Profit Margin of Sagarsoft (India) Ltd?

Sagarsoft (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.24% for FY-2025, which is below its 5-year median of 8.74% indicating decreasing margins.

Q.8 Net Profit Margin of Sagarsoft (India) Ltd?

Sagarsoft (India) Ltd Net Profit Margin is 6.43% for FY-2025, is in line with with its 5-year median of 6.74%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	11.9	12.5
Operating Profit Margin	8.24	8.74
Net Profit Margin	6.43	6.74

Q.9 Debt to Equity ratio of Sagarsoft (India) Ltd?

Sagarsoft (India) Ltd Debt-to-Equity ratio is 0.01, which is lower with the industry average of 0.21, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Sagarsoft (India) Ltd?

Sagarsoft (India) Ltd Debt to cash flow from operations is 0.09, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sagarsoft (India) Ltd?

Promoters hold 51.36% of the Sagarsoft (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sagarsoft (India) Ltd vs industry peers?

Sagarsoft (India) Ltd revenue CAGR is 9.08%, compared to the industry median CAGR of 12.21%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	2.9	12.2
Gross Profit Growth	-2	14.9
Operating Profit Growth	-3.1	9.1
Net Profit Growth	-1.9	14.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.84	1.39
ROE	6.63	13.01
ROCE	9.9	12.98
Cash Conversion Cycle (days)	96.79	61

Valuation & price assessment

Q.1 Stock return of Sagarsoft (India) Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of -3.68% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-3.7%	-20.8%	-52.8%

Q.3 Valuation ratios of Sagarsoft (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	14.87	26.55	29.19
Price to Book	0.82	1.94	2.44
Price to Sales	0.92	1.95	1.70
EV to EBITDA	5.83	12.44	15.37

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