Covance Softsol Ltd () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Mold-Tek Technol

Covance Softsol

Exato Technologi

Cybertech Sys.

Sigma Solve

Tera Software

3i Infotech

Mindteck (India)

Workmates Core2

TechD Cybersec.

CSM Technologies

Why is Covance Softsol Ltd ?

The company is Net-Debt Free

Healthy long term growth as Net Sales has grown by an annual rate of 54.50% and Operating profit at 546.37%

Flat results in Jun 26

NET SALES(Q) Lowest at Rs 29.27 cr
PBDIT(Q) Lowest at Rs 5.13 cr.
OPERATING PROFIT TO NET SALES (Q) Lowest at 17.53%

With ROE of 20.4, it has a Attractive valuation with a 3 Price to Book Value

Over the past year, while the stock has generated a return of 788.23%, its profits have risen by 184% ; the PEG ratio of the company is 0.1

Majority shareholders : Promoters

Market Beating Performance

The stock has generated a return of 788.23% in the last 1 year, much higher than market (BSE500) returns of 3.34%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Covance Softsol should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Covance Softsol for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Covance Softsol

788.23%

19.60

40.21%

Sensex

-3.84%

-0.28

13.52%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

54.50%

EBIT Growth (5y)

546.37%

EBIT to Interest (avg)

4.61

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-1.27

Sales to Capital Employed (avg)

0.88

Tax Ratio

26.09%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

-32.56%

ROE (avg)

16.83%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.02

EV to EBIT

7.10

EV to EBITDA

7.03

EV to Capital Employed

-6.40

EV to Sales

2.02

PEG Ratio

0.10

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

20.38%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

NET SALES(Latest six months)

At Rs 71.96 cr has Grown at 25.21%

PAT(Q)

Highest at Rs 12.65 cr.

EPS(Q)

Highest at Rs 5.71

-10What is not working for the Company

NET SALES(Q)

Lowest at Rs 29.27 cr

PBDIT(Q)

Lowest at Rs 5.13 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 17.53%

PBT LESS OI(Q)

Lowest at Rs 4.28 cr.

NON-OPERATING INCOME(Q)

is 73.51 % of Profit Before Tax (PBT

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Here's what is working for Covance Softsol

Profit After Tax (PAT) - Quarterly

At Rs 12.65 cr has Grown at 47.2% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 8.59 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 12.65 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 5.71

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Covance Softsol

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 4.28 cr has Fallen at -52.1% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 8.93 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

At Rs 29.27 cr has Fallen at -19.8% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 36.49 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Net Sales - Quarterly

Lowest at Rs 29.27 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 5.13 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 17.53%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 4.28 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 73.51 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Non Operating Income - Quarterly

Highest at Rs 11.88 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income