Check Before You Invest : Sigma Solve Ltd

Q: Which industry/sub-sector does Sigma Solve Ltd belong to?

Sigma Solve Ltd belongs to the IT & ITES sector, operating specifically within the BPO/ITeS segment.

Q: Is Sigma Solve Ltd a good quality company?

Sigma Solve Ltd is a good quality company, based on a consistently good 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: Is Sigma Solve Ltd undervalued or overvalued?

Sigma Solve Ltd appears Somewhat Undervalued, as its key valuation ratios are lower 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. Price to Earnings, Current: 72.95, Historic Median: 176.62. Price to Book, Current: 18.17, Historic Median: 22.11. Price to Sales, Current: 12.45, Historic Median: 19.92. EV to EBITDA, Current: 45.92, Historic Median: 127.39

Q: Is Sigma Solve Ltd a good buy now?

Sigma Solve Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Sigma Solve Ltd?

Sigma Solve Ltd revenue growth is 15.5% for FY-2025, which is below its 5-year CAGR of 41.96%, indicating slower growth.

Q: Gross Profit margin of Sigma Solve Ltd?

Sigma Solve Ltd Gross profit margin which is the profit after deduction of direct costs, is 26% for FY-2025, which is above its 5-year median of 17.8%, indicating increasing margins.

Q: Operating Profit Margin of Sigma Solve Ltd?

Sigma Solve Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 25.72% for FY-2025, which is above its 5-year median of 14.58% indicating increasing margins.

Q: Net Profit Margin of Sigma Solve Ltd?

Sigma Solve Ltd Net Profit Margin is 17.45% for FY-2025, is above its 5-year median of 12.67%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 26, Historic Median: 17.8. Operating Profit Margin (%), Current: 25.72, Historic Median: 14.58. Net Profit Margin (%), Current: 17.45, Historic Median: 12.67

Q: Return on Asset of Sigma Solve Ltd?

Sigma Solve Ltd Return on Asset is 20.42%, which is above its 5-year historical median of 12.38%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Sigma Solve Ltd?

Sigma Solve Ltd Return on capital employed is 33.69% for FY-2025, which is above its 5-year historical median of 20.57%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Sigma Solve Ltd

BSE: 543917 NSE: SIGMA ISIN: INE0A0S01028

| Sector: IT & ITES | Industry: BPO/ITeS

Snapshot

Q.1 Which industry/sub-sector does Sigma Solve Ltd belong to?

Sigma Solve Ltd belongs to the IT & ITES sector, operating specifically within the BPO/ITeS segment.

Q.2 Is Sigma Solve Ltd a good quality company?

Sigma Solve Ltd is a good quality company, based on a consistently good 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 Sigma Solve Ltd undervalued or overvalued?

Sigma Solve Ltd appears Somewhat Undervalued, as its key valuation ratios are lower 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	72.95	176.62
Price to Book	18.17	22.11
Price to Sales	12.45	19.92
EV to EBITDA	45.92	127.39

Q.4 Is Sigma Solve Ltd a good buy now?

Sigma Solve Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Sigma Solve Ltd?

Sigma Solve Ltd revenue growth is 15.5% for FY-2025, which is below its 5-year CAGR of 41.96%, indicating slower growth.

Q.2 Gross Profit margin of Sigma Solve Ltd?

Sigma Solve Ltd Gross profit margin which is the profit after deduction of direct costs, is 26% for FY-2025, which is above its 5-year median of 17.8%, indicating increasing margins.

Q.3 Operating Profit Margin of Sigma Solve Ltd?

Sigma Solve Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 25.72% for FY-2025, which is above its 5-year median of 14.58% indicating increasing margins.

Q.4 Net Profit Margin of Sigma Solve Ltd?

Sigma Solve Ltd Net Profit Margin is 17.45% for FY-2025, is above its 5-year median of 12.67%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	26	17.8
Operating Profit Margin (%)	25.72	14.58
Net Profit Margin (%)	17.45	12.67

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Sigma Solve Ltd?

Sigma Solve Ltd Return on Asset is 20.42%, which is above its 5-year historical median of 12.38%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Sigma Solve Ltd?

Sigma Solve Ltd Return on capital employed is 33.69% for FY-2025, which is above its 5-year historical median of 20.57%. 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 Sigma Solve Ltd?

Sigma Solve Ltd Return on equity is 29.4% for FY-2025, which is above its 5-year historical median of 16.54%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Sigma Solve Ltd?

Sigma Solve Ltd Cash conversion cycle is 59 days, below its 5-year historical median of 74 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)	1.17	1.13
ROE (%)	29.4	16.54
ROCE (%)	33.69	20.57
Cash Conversion Cycle	59 days	74 days

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

Q.9 Debt to Equity ratio of Sigma Solve Ltd?

Sigma Solve Ltd Debt-to-Equity ratio is 0.17, which is above the industry average of 0.05, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Sigma Solve Ltd?

Sigma Solve Ltd Debt to cash flow from operations is 0.27, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Sigma Solve Ltd?

Q.1 Promoter shareholding and pledge status of Sigma Solve Ltd?

Promoters hold 73.22% of the Sigma Solve Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Sigma Solve Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Sigma Solve Ltd vs industry peers?

Sigma Solve Ltd revenue CAGR is 41.96%, compared to the industry median CAGR of 3.91%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	15.5	3.9
Gross Profit Growth (%)	33.3	10.8
Operating Profit Growth (%)	33.3	10.8
Net Profit Growth (%)	50	8.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.17	0.72
ROE (%)	29.4	10.43
ROCE (%)	33.69	15.4
Cash Conversion Cycle (days)	58.66	38

Valuation & price assessment

Q.1 Stock return of Sigma Solve Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of -0.04% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-0%	-42.7%	62.6%

Q.2 Valuation ratios of Sigma Solve Ltd vs historical?

The current P/E ratio of 72.95 is lower than its historical median of 176.62, indicating that the stock is trading below 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	72.95	176.62	29.72
Price to Book	18.17	22.11	2.75
Price to Sales	12.45	19.92	4.18
EV to EBITDA	45.92	127.39	15.58

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Check Before You Invest : Sigma Solve Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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