Why is ERP Soft Systems Ltd ?
1
Weak Long Term Fundamental Strength with a -3.20% CAGR growth in Operating Profits over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.31
- The company has been able to generate a Return on Equity (avg) of 1.30% signifying low profitability per unit of shareholders funds
2
Flat results in Mar 26
- PBDIT(Q) Lowest at Rs 0.06 cr.
- PBT LESS OI(Q) Lowest at Rs 0.06 cr.
- EPS(Q) Lowest at Rs 0.10
3
Risky - Not traded in last 10 days
- The company has not traded for the last 10 days
- Over the past year, while the stock has generated a return of -56.10%, its profits have fallen by -3%
- The stock is trading risky as compared to its average historical valuations
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Diversified Commercial Services)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is ERP Soft Systems for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
ERP Soft Systems
-56.1%
-1.09
51.62%
Sensex
-10.34%
-0.79
13.08%
Quality key factors
Factor
Value
Sales Growth (5y)
-5.03%
EBIT Growth (5y)
-3.20%
EBIT to Interest (avg)
0.31
Debt to EBITDA (avg)
1.81
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0.74
Tax Ratio
25.00%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.67%
ROE (avg)
1.30%
Valuation Key Factors 
Factor
Value
P/E Ratio
132
Industry P/E
0
Price to Book Value
1.27
EV to EBIT
23.77
EV to EBITDA
23.77
EV to Capital Employed
1.27
EV to Sales
2.42
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
1.33%
ROE (Latest)
0.96%
Loading Valuation Snapshot...
1What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 1.04 times
-3What is not working for the Company
PBDIT(Q)
Lowest at Rs 0.06 cr.
PBT LESS OI(Q)
Lowest at Rs 0.06 cr.
EPS(Q)
Lowest at Rs 0.10
Loading Valuation Snapshot...
Here's what is working for ERP Soft Systems
Debtors Turnover Ratio- Half Yearly
Highest at 1.04 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for ERP Soft Systems
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 0.06 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 0.06 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 0.10
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)






