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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 quality company, based on a 10 year financial track record.
Q.3 Is Sigma Solve Ltd undervalued or overvalued?
Sigma Solve Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Sigma Solve Ltd a good buy now?
Sigma Solve 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 Sigma Solve Ltd?
Sigma Solve Ltd revenue growth is 15.5% for FY-2025 , which is below its 5 year CAGR of 42% , 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 with its 5 year median of 12.67%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 26 17.8
Operating Profit Margin 25.72 14.58
Net Profit Margin 17.45 12.67
Q.5 Return on Asset of Sigma Solve Ltd?
Sigma Solve Ltd Return on Asset is 20.42(x), which is above its 5 year historical median of 12.38(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Sigma Solve Ltd?
Sigma Solve Ltd Return on equity is 29.4% for FY-2025 , which is above its historical median of 16.54%, indicating the business is making better use of its shareholders capital.
Q.7 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 estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Sigma Solve Ltd?
Sigma Solve Ltd Cash conversion cycle is 59 , below its historical median of 74 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.17 1.13
ROE 29.4 16.54
ROCE 33.69 20.57
Cash Conversion Cycle 59 74
Q.9 Debt to Equity ratio of Sigma Solve Ltd?
Sigma Solve Ltd Debt-to-Equity ratio is 0.17 , which is above with the industry average of 0.06 , 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, indicating the business is able to service its debt comfortably.

Ownership & governance

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)

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 4.16% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 31.9 35.5
Gross Profit 8.3 4.4
Operating Profit 8 4.4
Net Profit 6 2
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.17 0.73
ROE 29.4 11.15
ROCE 33.69 15.65
Cash Conversion Cycle 58.66 40

Valuation & price assessment

Q.1 Stock return of Sigma Solve Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 0% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 1.1% -37.6% 77.8%
Q.3 Valuation ratios of Sigma Solve Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 70.13 245.79 19.99
Price to Book 17.47 17.15 2.65
Price to Sales 11.97 26.39 3.59
EV to EBITDA 44.15 158.66 16.03

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