Why is Softsol India Ltd ?
1
Poor Management Efficiency with a low ROE of 8.60%
- The company has been able to generate a Return on Equity (avg) of 8.60% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of -8.55% over the last 5 years
3
Below par performance in long term as well as near term
- Along with generating -21.05% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
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 Computers - Software & Consulting)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Softsol India for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Softsol India
-21.05%
-0.40
52.27%
Sensex
4.7%
0.39
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
-8.55%
EBIT Growth (5y)
3.13%
EBIT to Interest (avg)
5.75
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.79
Sales to Capital Employed (avg)
0.16
Tax Ratio
15.06%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.00%
ROE (avg)
8.60%
Valuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
28
Price to Book Value
1.96
EV to EBIT
16.03
EV to EBITDA
13.58
EV to Capital Employed
5.53
EV to Sales
2.50
PEG Ratio
3.87
Dividend Yield
NA
ROCE (Latest)
34.48%
ROE (Latest)
11.67%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
No Trend
Technical Movement
9What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -32% (YoY
NET SALES(Q)
Highest at INR 33.88 MM
OPERATING PROFIT(Q)
Highest at INR 25.41 MM
OPERATING PROFIT MARGIN(Q)
Highest at 74.98 %
PRE-TAX PROFIT(Q)
Highest at INR 48.57 MM
NET PROFIT(Q)
Highest at INR 44.4 MM
EPS(Q)
Highest at INR 3.01
-9What is not working for the Company
NET SALES(HY)
At INR 66.23 MM has Grown at -72.68%
CASH AND EQV(HY)
Lowest at INR 128.92 MM
Loading Valuation Snapshot...
Here's what is working for Softsol India
Net Sales
Highest at INR 33.88 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (INR MM)
Operating Profit
Highest at INR 25.41 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (INR MM)
Operating Profit Margin
Highest at 74.98 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at INR 48.57 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (INR MM)
Pre-Tax Profit
At INR 48.57 MM has Grown at 73.07%
over average net sales of the previous four periods of INR 28.06 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (INR MM)
Net Profit
Highest at INR 44.4 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (INR MM)
Net Profit
At INR 44.4 MM has Grown at 105.07%
over average net sales of the previous four periods of INR 21.65 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (INR MM)
EPS
Highest at INR 3.01
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (INR)
Raw Material Cost
Fallen by -32% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Softsol India
Cash and Eqv
Lowest at INR 128.92 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents






