Why is Softtech Engineers Ltd ?
1
Poor Management Efficiency with a low ROE of 3.27%
- The company has been able to generate a Return on Equity (avg) of 3.27% signifying low profitability per unit of shareholders funds
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.21 times
3
Poor long term growth as Operating profit has grown by an annual rate 7.59% of over the last 5 years
4
With a growth in Net Sales of 23.21%, the company declared Very Positive results in Jun 26
- The company has declared positive results for the last 3 consecutive quarters
- PAT(Latest six months) Higher at Rs 3.45 cr
- DEBTORS TURNOVER RATIO(HY) Highest at 3.84 times
- DEBT-EQUITY RATIO(HY) Lowest at 0.23 times
5
With ROE of 2.9, it has a Very Expensive valuation with a 3.4 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 4.04%, its profits have risen by 209.2% ; the PEG ratio of the company is 0.6
6
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
How much should you hold?
- Overall Portfolio exposure to Softtech Enginee 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 Softtech Enginee for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Softtech Enginee
7.12%
0.17
42.70%
Sensex
-5.48%
-0.41
13.39%
Quality key factors
Factor
Value
Sales Growth (5y)
24.15%
EBIT Growth (5y)
7.59%
EBIT to Interest (avg)
2.02
Debt to EBITDA (avg)
1.86
Net Debt to Equity (avg)
0.02
Sales to Capital Employed (avg)
0.49
Tax Ratio
40.75%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.25%
ROE (avg)
3.27%
Valuation Key Factors 
Factor
Value
P/E Ratio
116
Industry P/E
Price to Book Value
3.40
EV to EBIT
59.58
EV to EBITDA
17.33
EV to Capital Employed
3.36
EV to Sales
4.22
PEG Ratio
0.56
Dividend Yield
NA
ROCE (Latest)
5.35%
ROE (Latest)
2.88%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
21What is working for the Company
PAT(Latest six months)
Higher at Rs 3.45 cr
DEBTORS TURNOVER RATIO(HY)
Highest at 3.84 times
DEBT-EQUITY RATIO(HY)
Lowest at 0.23 times
NET SALES(Q)
At Rs 33.28 cr has Grown at 23.21%
-1What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Softtech Enginee
Profit After Tax (PAT) - Latest six months
At Rs 3.45 cr has Grown at 248.48%
Year on Year (YoY)MOJO Watch
PAT trend is very positive
PAT (Rs Cr)
Profit After Tax (PAT) - Latest six months
Higher at Rs 3.45 cr
than preceding 12 month period ended Jun 2026 of Rs 2.58 crMOJO Watch
In the half year the company has already crossed PAT of the previous twelve months
PAT (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Highest at 3.84 times and Grown
each half year in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Net Sales - Quarterly
At Rs 33.28 cr has Grown at 23.21%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 0.23 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio






