Covance Softsol

Why is Covance Softsol Ltd falling/rising?

As of 11-Jun, Covance Softsol Ltd's stock price is experiencing a decline of 4.99% after a trend reversal, underperforming its sector and indicating a bearish short-term outlook despite strong long-term growth.

As of 11-Jun, Covance Softsol Ltd's stock price is currently falling, with a change of -8.25, representing a decline of 4.99%. This drop follows a trend reversal after four consecutive days of gains. The stock has underperformed its sector by 3.45% today and reached an intraday low of Rs 156.95. Additionally, the weighted average price indicates that more volume was traded close to this low price, suggesting selling pressure.<BR><BR>Despite the stock's impressive year-to-date performance of +70.91% and a staggering +1434.43% return over the past year, the recent decline can be attributed to a combination of factors. The stock is currently lower than the 20-day, 50-day, and 100-day moving averages, indicating a bearish trend in the short term. Furthermore, while there has been a rise in investor participation, with delivery volume increasing by 123.31% against the 5-day average, the overall market sentiment appears to be negative, as reflected in the stock's performance relative to the Sensex, which has seen a slight decline of -0.71% over the past week.<BR><BR>In summary, the current fall in Covance Softsol Ltd's stock price is influenced by a recent trend reversal, underperformance compared to its sector, and a bearish short-term moving average situation, despite its strong long-term growth and profitability indicators.

What does Covance Softsol do?

Covance Softsol Ltd, a micro-cap company incorporated in August 2023, operates in the software and consulting industry, reporting net sales of 43 Cr and a net profit of 6 Cr for the quarter ending March 2026. Key metrics include a P/E ratio of 11.00 and a market cap of INR 374 Cr.

Overview:<BR>Covance Softsol Ltd operates in the Computers - Software & Consulting industry and is categorized 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>Most recent Net Sales: 43 Cr (Quarterly Results - Mar 2026) <BR>Most recent Net Profit: 6 Cr (Quarterly Results - Mar 2026) <BR>Market-cap value: INR 374 Cr (Micro Cap)<BR><BR>Key Metrics:<BR>P/E: 11.00 <BR>Industry P/E: 20 <BR>Dividend Yield: 0.00% <BR>Debt Equity: -1.27 <BR>Return on Equity: 20.38% <BR>Price to Book: 2.12 <BR><BR>Contact Details:<BR>Details: No Company Details Available <BR>Registrar Address: Not available.

Which are the latest news on Covance Softsol?

How big is Covance Softsol?

As of 10th June, Covance Softsol Ltd has a market capitalization of 374.00 Cr, with recent net sales of 145.97 Cr and a net profit of 34.37 Cr. The balance sheet for March 2025 shows shareholder's funds of 91.23 Cr and total assets of 194.28 Cr.

As of 10th June, Covance Softsol Ltd has a market capitalization of 374.00 Cr, categorizing it as a Micro Cap company.<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, showing Shareholder's Funds of 91.23 Cr and Total Assets of 194.28 Cr.

Who are the peers of the Covance Softsol?

Covance Softsol's peers include Sattrix Infor, XT Global Infot, Mold-Tek Technol, 3i Infotech, Trejhara Solutio, Alphalogic Tech, Virtual Galaxy, and Systango Tech. Covance Softsol leads in 1-year returns at 1434.43%, while several peers show negative returns over six months.

Peers: The peers of Covance Softsol are Sattrix Infor., XT Global Infot., Mold-Tek Technol, 3i Infotech, Trejhara Solutio, Alphalogic Tech., Virtual Galaxy, and Systango Tech.<BR><BR>Quality Snapshot: Excellent management risk is observed at Sattrix Infor., Virtual Galaxy, and Systango Tech, while Good management risk is found at Mold-Tek Technol and the rest. Average management risk is present at Covance Softsol and Alphalogic Tech., while Below Average management risk is noted at XT Global Infot., Trejhara Solutio, and the rest. For growth, Excellent growth is seen at Sattrix Infor., Covance Softsol, Virtual Galaxy, and Systango Tech, while Below Average growth is found at Mold-Tek Technol, 3i Infotech, Trejhara Solutio, and the rest. Capital Structure ratings show Excellent at Sattrix Infor., Mold-Tek Technol, Virtual Galaxy, and Systango Tech, Good at XT Global Infot., 3i Infotech, Covance Softsol, Alphalogic Tech., Trejhara Solutio, and the rest.<BR><BR>Return Snapshot: Covance Softsol has the highest 1-year return at 1434.43%, while 3i Infotech has the lowest at -32.17%. Covance Softsol's return significantly outperforms all peers. Additionally, peers such as Mold-Tek Technol, 3i Infotech, Trejhara Solutio, and Alphalogic Tech. have negative six-month returns.

Should I buy, sell or hold Covance Softsol Ltd?

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