Check Before You Invest : Seshaasai Technologies Ltd

BSE: 544533 NSE: STYL ISIN: INE04VU01023

| Sector: IT & ITES | Industry: Fintech

Snapshot

Q.1 Which industry/sub-sector does Seshaasai Technologies Ltd belong to?

Seshaasai Technologies Ltd belongs to the IT & ITES sector, operating specifically within the Fintech segment.

Q.2 Is Seshaasai Technologies Ltd a good quality company?

Seshaasai Technologies Ltd is a average quality company, based on a somewhat consistent 4-year financial track record.

Q.3 Is Seshaasai Technologies Ltd undervalued or overvalued?

Seshaasai Technologies Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Seshaasai Technologies Ltd a good buy now?

Seshaasai Technologies 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 Seshaasai Technologies Ltd?

Seshaasai Technologies Ltd revenue growth is -6.2% for FY-2025, which is below its 3-year CAGR of 29.55%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Seshaasai Technologies Ltd?

Seshaasai Technologies Ltd Return on capital employed is 37.7% for FY-2025, which is in line with its 3-year historical median of 37.7%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Seshaasai Technologies Ltd?

Seshaasai Technologies Ltd Return on Asset is 20.96%, which is above its 3-year historical median of 19.44%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Seshaasai Technologies Ltd?

Seshaasai Technologies Ltd Return on equity is 41.45% for FY-2025, which is below its 3-year historical median of 50.92%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Seshaasai Technologies Ltd?

Seshaasai Technologies Ltd Cash conversion cycle is 62 days, above its 3-year historical median of 50 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover	1.4	1.7
ROE	41.45	50.92
ROCE	37.7	37.7
Cash Conversion Cycle	62 days	50 days

Q.6 Gross Profit margin of Seshaasai Technologies Ltd?

Seshaasai Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 22.7% for FY-2025, which is above its 3-year median of 17.3%, indicating increasing margins.

Q.7 Operating Profit Margin of Seshaasai Technologies Ltd?

Seshaasai Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 24.71% for FY-2025, which is above its 3-year median of 18.72% indicating increasing margins.

Q.8 Net Profit Margin of Seshaasai Technologies Ltd?

Seshaasai Technologies Ltd Net Profit Margin is 15.2% for FY-2025, is above with its 3-year median of 10.87%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin	22.7	17.3
Operating Profit Margin	24.71	18.72
Net Profit Margin	15.2	10.87

Q.9 Debt to Equity ratio of Seshaasai Technologies Ltd?

Seshaasai Technologies Ltd Debt-to-Equity ratio is 0.55, which is above with the industry average of 0.23, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Seshaasai Technologies Ltd?

Seshaasai Technologies Ltd Debt to cash flow from operations is 2.12, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Seshaasai Technologies Ltd?

Promoters hold 81.80% of the Seshaasai Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Seshaasai Technologies Ltd vs industry peers?

Seshaasai Technologies Ltd revenue CAGR is 29.55%, compared to the industry median CAGR of 29.55%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	-6.2	29.6
Gross Profit Growth	24.9	44.7
Operating Profit Growth	23.3	40.1
Net Profit Growth	31.4	47.7

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	1.4	1.03
ROE	41.45	4.91
ROCE	37.7	12.66
Cash Conversion Cycle (days)	61.5	8

Valuation & price assessment

Q.1 Stock return of Seshaasai Technologies Ltd over the last decade?

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

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

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

Q.3 Valuation ratios of Seshaasai Technologies Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	17.63	19.64	62.87
Price to Book	2.91	3.40	4.20
Price to Sales	2.68	2.98	5.74
EV to EBITDA	9.84	11.05	19.33

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