Softsol India 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

Covance Softsol

Softsol India

DRC Systems

Bartronics India

Alphalogic Tech.

3i Infotech

FCS Software

Exato Technologi

Adcounty Media.

Sattrix Infor.

Methodhub Softwa

Why is Softsol India Ltd ?

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

Company has a low Debt to Equity ratio (avg) at 0 times

Poor long term growth as Net Sales has grown by an annual rate of -8.55% over the last 5 years

Positive results in Jun 25

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

With ROE of 11.7, it has a Very Attractive valuation with a 1.8 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -23.78%, its profits have risen by 4.3% ; the PEG ratio of the company is 3.6

Majority shareholders : Promoters

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 11.06% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -23.78% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Softsol India 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 Softsol India for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Softsol India

-23.78%

-0.44

54.37%

Sensex

8.52%

0.74

11.46%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

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

Pledged Shares

Institutional Holding

ROCE (avg)

5.00%

ROE (avg)

8.60%

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

1.83

EV to EBIT

14.19

EV to EBITDA

12.03

EV to Capital Employed

4.89

EV to Sales

2.22

PEG Ratio

3.61

Dividend Yield

ROCE (Latest)

34.48%

ROE (Latest)

11.67%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

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

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

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Here's what is working for Softsol India

Net Sales

Highest at INR 33.88 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (INR MM)

Operating Profit

Highest at INR 25.41 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (INR MM)

Operating Profit Margin

Highest at 74.98 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at INR 48.57 MM

in the last five periods

MOJO 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 MM

MOJO 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 periods

MOJO 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 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (INR MM)

EPS

Highest at INR 3.01

in the last five periods

MOJO 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 periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents