Covance Softsol

Why is Covance Softsol Ltd falling/rising?

As of 16-Aug, Covance Softsol Ltd's stock price is at 230.00, down 1.05%. The stock has seen significant volatility, with a recent trend reversal and decreased investor participation, despite impressive long-term gains.

As of 16-Aug, Covance Softsol Ltd's stock price is currently at 230.00, reflecting a decrease of 2.45 (-1.05%). The stock has underperformed its sector by 0.73% today and has experienced a trend reversal after four consecutive days of gains. Although it opened with a gain of 4.45% and reached an intraday high of Rs 242.8, it subsequently fell to a low of Rs 220.85, indicating significant volatility within the trading day.<BR><BR>The stock's performance over the past week shows a notable increase of 14.63%, contrasting with a slight decline in the benchmark Sensex by 0.62%. However, over the past month, Covance Softsol Ltd has seen a decline of 14.81%, while the Sensex has increased by 1.24%. Year-to-date, the stock has performed exceptionally well with a rise of 150.46%, despite the Sensex declining by 8.46%. Over the past year, the stock has skyrocketed by 814.88%, significantly outpacing the Sensex's decline of 3.21%.<BR><BR>Despite these impressive long-term gains, the current drop in price can be attributed to falling investor participation, as evidenced by a 33.21% decrease in delivery volume compared to the five-day average. Additionally, while the stock is trading above its 5-day, 50-day, 100-day, and 200-day moving averages, it is below its 20-day moving average, suggesting a potential shift in momentum. The weighted average price indicates that more volume was traded closer to the low price of the day, further supporting the downward movement. Overall, the combination of a trend reversal, decreased investor participation, and intraday volatility has contributed to the current decline in Covance Softsol Ltd's stock price.

Should I buy, sell or hold Covance Softsol Ltd?

Which are the latest news on Covance Softsol?

What does Covance Softsol do?

Covance Softsol Ltd, a Micro Cap company in the Computers - Software & Consulting industry, was incorporated in August 2023 and reported net sales of 43 Cr and a net profit of 6 Cr for the quarter ending March 2026. Key metrics include a P/E of 15.00, a market cap of INR 509 Cr, and a return on equity of 20.38%.

Overview:<BR>Covance Softsol Ltd operates in the Computers - Software & Consulting industry and is classified as a Micro Cap company.<BR><BR>History:<BR>Covance Softsol Limited was incorporated as a Public Limited Company on August 11, 2023, in the State of Telangana. The latest quarterly results reported net sales and net profit for the period ending March 2026.<BR><BR>Financial Snapshot:<BR>Net Sales: 43 Cr (Quarterly Results - Mar 2026) <BR>Net Profit: 6 Cr (Quarterly Results - Mar 2026) <BR>Market Cap: INR 509 Cr (Micro Cap)<BR><BR>Key Metrics:<BR>P/E: 15.00 <BR>Industry P/E: 22 <BR>Dividend Yield: 0.00% <BR>Debt Equity: -1.27 <BR>Return on Equity: 20.38% <BR>Price to Book: 2.91 <BR><BR>Contact Details:<BR>Registrar Address: Not available. <BR>Phone: N/A <BR>Email: N/A <BR>Website: N/A

Who are the peers of the Covance Softsol?

Covance Softsol's peers include Mindteck (India), Softtech Enginee, 3i Infotech, Mold-Tek Technol, Sigma Solve, Tera Software, XT Global Infot., and TechD Cybersec. Covance Softsol shows excellent growth and management risk compared to its peers, with the highest 1-year return at 843.00%.

Peers: The peers of Covance Softsol are Mindteck (India), Softtech Enginee, 3i Infotech, Mold-Tek Technol, Sigma Solve, Tera Software, XT Global Infot., and TechD Cybersec.<BR><BR>Quality Snapshot: Excellent management risk is observed at Mindteck (India), Mold-Tek Technol, and TechD Cybersec, while Average management risk is found at Covance Softsol, 3i Infotech, Sigma Solve, and the rest. Below Average management risk is present at Softtech Enginee and XT Global Infot. In terms of Growth, Excellent growth is noted at Covance Softsol, Tera Software, and TechD Cybersec, while Below Average growth is seen at Mindteck (India), Softtech Enginee, 3i Infotech, Mold-Tek Technol, Sigma Solve, and the rest. Good capital structure is found at Softtech Enginee, 3i Infotech, Covance Softsol, Tera Software, and XT Global Infot., while Excellent capital structure is observed at Mindteck (India), Mold-Tek Technol, and Sigma Solve.<BR><BR>Return Snapshot: Covance Softsol has the highest 1-year return at 843.00%, while XT Global Infot. has the lowest at -4.03%, indicating a significant difference in performance. Covance Softsol's return is substantially higher than all peers. Additionally, peers with negative six-month returns include Mindteck (India), Tera Software, and XT Global Infot.

How big is Covance Softsol?

As of 14th August, Covance Softsol Ltd has a market capitalization of 519.00 Cr, with recent net sales of 145.97 Cr and a net profit of 34.37 Cr.

As of 14th August, Covance Softsol Ltd has a market capitalization of 519.00 Cr, categorized as a Micro Cap.<BR><BR>In the latest four quarters, Covance Softsol reported Net Sales of 145.97 Cr and a Net Profit of 34.37 Cr.<BR><BR>The latest annual period for the balance sheet is March 2025, with Shareholder's Funds amounting to 91.23 Cr and Total Assets valued at 194.28 Cr.

Are Covance Softsol Ltd latest results good or bad?

Covance Softsol Ltd's latest results show strong revenue growth of 76.48% year-on-year, but a concerning 50.04% decline in net profit and a significant drop in profit margins indicate profitability challenges that investors should monitor closely.

Covance Softsol Ltd's latest results present a mixed picture, indicating both strong revenue growth and significant profitability challenges. In Q4 FY26, the company reported a net profit of ₹6.30 crores, which is a concerning 50.04% decline compared to the previous quarter. This sharp drop in profit occurred despite a robust year-on-year revenue growth of 76.48%, with net sales reaching ₹42.69 crores, marking a sequential increase of 15.91%.<BR><BR>However, the profitability metrics are troubling. The PAT margin fell dramatically from 34.24% in Q3 FY26 to just 14.76% in Q4 FY26, reflecting rising operational costs, particularly in employee expenses, which surged by 30.95% quarter-on-quarter. Additionally, interest costs increased significantly, contributing to the overall decline in profitability.<BR><BR>While the revenue growth is impressive and indicates strong market demand, the substantial decline in net profit and margins raises questions about the sustainability of this growth and the company's operational efficiency. Investors should be cautious and closely monitor future performance to assess whether these profitability issues can be addressed.

When is the next results date for Covance Softsol Ltd?

The next results date for Covance Softsol Ltd is 14 February 2026.

The next results date for Covance Softsol Ltd is scheduled for 14 February 2026.

Is Covance Softsol overvalued or undervalued?

As of October 28, 2025, Covance Softsol is considered very attractive with a PE Ratio of 12.06 and significant undervaluation compared to peers like TCS and Infosys, alongside a strong recent stock performance of 48.33% over one month.

As of 28 October 2025, Covance Softsol has moved from a fair to a very attractive valuation grade. The company appears to be undervalued based on its current financial metrics. Key ratios include a PE Ratio of 12.06, a Price to Book Value of 0.10, and an EV to EBIT of -164.28, indicating significant undervaluation relative to its earnings potential.<BR><BR>In comparison to its peers, Covance Softsol's PE Ratio is notably lower than TCS at 21.99 and Infosys at 22.17, both of which are considered attractive. Additionally, while Wipro is also rated very attractive with a PE of 18.82, Covance's valuation metrics suggest it is positioned favorably for growth. The company's recent stock performance has outpaced the Sensex, with a 1-month return of 48.33% compared to the Sensex's 5.22%, reinforcing the notion that it is currently undervalued.

How has been the historical performance of Covance Softsol?

Covance Softsol experienced significant growth from March 2024 to March 2025, with net sales increasing to 101.70 Cr from 61.17 Cr, and profit after tax rising to 12.12 Cr from 1.25 Cr. Key metrics such as operating profit margin and earnings per share also improved markedly during this period.

Answer:<BR>The historical performance of Covance Softsol shows significant growth from March 2024 to March 2025.<BR><BR>Breakdown:<BR>In the fiscal year ending March 2025, Covance Softsol reported net sales of 101.70 Cr, a substantial increase from 61.17 Cr in the previous year. Total operating income mirrored this growth, reaching 101.70 Cr compared to 61.17 Cr in March 2024. The company's total expenditure also rose to 89.73 Cr from 60.24 Cr, primarily driven by an increase in employee costs and other expenses. Operating profit (PBDIT) surged to 22.65 Cr from 8.56 Cr, with profit before tax climbing to 16.44 Cr from 2.42 Cr. Consequently, profit after tax saw a remarkable rise to 12.12 Cr, up from 1.25 Cr, resulting in an earnings per share (EPS) of 6.17 compared to 0.85 the previous year. The operating profit margin improved significantly to 11.77% from 1.52%, while the profit after tax margin increased to 11.92% from 2.04%. On the balance sheet, total assets grew to 194.28 Cr from 162.50 Cr, with total liabilities also increasing to 194.28 Cr from 162.50 Cr. Cash flow from operating activities turned positive at 18.00 Cr, compared to a negative 10.00 Cr in the prior year, indicating improved operational efficiency. Overall, Covance Softsol demonstrated strong financial performance and growth in key metrics over the year.

Who are the top shareholders of the Covance Softsol?

The top shareholders of Covance Softsol include Durga V L K Madala with 64.74%, followed by public shareholder Talluri Samatha at 22.52%. Individual investors hold about 2.76%, with no mutual funds or foreign institutional investors currently involved.

The top shareholders of Covance Softsol are primarily the promoters, with Durga V L K Madala holding the largest share at 64.74%. The highest public shareholder is Talluri Samatha, who owns 22.52%. Additionally, individual investors hold about 2.76% of the company's shares. There are currently no holdings from mutual funds or foreign institutional investors.

Has Covance Softsol declared dividend?

No Dividend History Available