ERP Soft Systems Faces Financial Challenges Amid Shift in Market Sentiment
ERP Soft Systems has recently experienced a change in its evaluation, reflecting a shift in market sentiment. The company faces significant challenges, including a decline in net sales and low liquidity. Long-term performance metrics indicate fundamental weaknesses, with low profitability and a premium stock valuation compared to peers.
ERP Soft Systems, operating in the diversified commercial services sector, has recently undergone an adjustment in its evaluation. This revision reflects a shift in the technical indicators that assess the stock's performance. The technical landscape has transitioned from a mildly bullish stance to a mildly bearish outlook, indicating a change in market sentiment.Key financial metrics reveal a challenging environment for ERP Soft Systems. The company reported a net sales figure of Rs 6.80 crore for the first nine months, reflecting a decline of 27.97%. Additionally, the cash and cash equivalents have reached a low of Rs 0.30 crore, raising concerns about liquidity. The debtors turnover ratio stands at 0.77 times, suggesting potential issues with receivables management.
Over the past five years, the company has experienced a compound annual growth rate (CAGR) of -1.80% in operating profits, highlighting long-term fundamental weaknesses. The return on equity (ROE) is notably low at 1.37%, indicating limited profitability relative to shareholders' funds. Furthermore, the stock is trading at a premium compared to its peers, with a price-to-book value of 2.9.
In summary, the evaluation adjustment for ERP Soft Systems underscores the challenges the company faces in terms of financial performance and market positioning.
Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.
{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)
{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)
Related Stock Links
- {{stockdata.stock.stock_name.value}} Analysis
- {{stockdata.stock.stock_name.value}} Technicals
- {{stockdata.stock.stock_name.value}} Quality
- {{stockdata.stock.stock_name.value}} Valuation
- {{stockdata.stock.stock_name.value}} Financial Trend
- {{stockdata.stock.stock_name.value}} Return Analysis
- {{stockdata.stock.stock_name.value}} Price Analysis
- {{stockdata.stock.stock_name.value}} Quarterly Result Analysis
- {{stockdata.stock.stock_name.value}} Half-Yearly Result Analysis
- {{stockdata.stock.stock_name.value}} Nine Monthly Result Analysis
- {{stockdata.stock.stock_name.value}} Annual Results
- {{stockdata.stock.stock_name.value}} Balance Sheet
- {{stockdata.stock.stock_name.value}} Profit & Loss
- {{stockdata.stock.stock_name.value}} Cash Flow
- {{stockdata.stock.stock_name.value}} News
- {{stockdata.stock.stock_name.value}} Announcements
- {{stockdata.stock.stock_name.value}} Share Holding
- {{stockdata.stock.stock_name.value}} Peer Comparison
Our weekly and monthly stock recommendations are here
Loading...
Industry
{{sm.old_ind_name }}
Market Cap
{{sm.mcapsizerank }}
Date of Entry
{{sm.date }}
Target Price
{{sm.target_price }}
({{sm.performance_target }}%)
Holding Duration
{{sm.target_duration }}
Last 1 Year Return
{{sm.performance_1y}}%
{{sm.comp_name}} price as on {{sm.todays_date}}
₹{{sm.price_as_on}} ({{sm.performance}}%)
Industry
{{sm.old_ind_name}}
Market Cap
{{sm.mcapsizerank}}
Date of Entry
{{sm.date}}
Entry Price
{{sm.opening_price}}
Last 1 Year Return
{{sm.performance_1y}}%
Related News
Most Read
