Sofcom Systems

Why is Sofcom Systems Ltd falling/rising?

As of 09-Jun, Sofcom Systems Ltd's stock price has risen by 1.13% today, but it has significantly underperformed over time, with declines of 57.82% year-to-date and 75.96% over the past year, alongside decreased investor participation.

As of 09-Jun, Sofcom Systems Ltd's stock price is currently rising, with a change of 0.22 (1.13%) upward. However, despite this short-term increase, the stock has shown significant underperformance over various time periods. For instance, over the past week, the stock has decreased by 6.59%, and over the past month, it has fallen by 21.54%. Year-to-date, the stock has plummeted by 57.82%, and over the past year, it has declined by 75.96%. <BR><BR>Additionally, the stock is trading below its moving averages across multiple time frames, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a longer-term downward trend. Investor participation has also decreased, with a delivery volume of 23.2k on June 8, which is down by 71.74% compared to the 5-day average delivery volume. This decline in trading activity suggests a lack of confidence among investors.<BR><BR>Overall, while there is a minor increase in the stock price today, the broader context indicates a significant decline in value and investor interest over time.

Which are the latest news on Sofcom Systems?

Should I buy, sell or hold Sofcom Systems Ltd?

Are Sofcom Systems Ltd latest results good or bad?

Sofcom Systems Ltd's latest results are concerning, showing a 71.19% decline in net profit and a 61.54% drop in revenue year-on-year, indicating significant operational distress and challenges in maintaining its business model. The low return on equity and lack of institutional holdings further highlight the company's struggles.

Sofcom Systems Ltd's latest results are concerning and indicate a significant decline in financial performance. In the fourth quarter of FY26, the company reported a net profit of ₹0.17 crore, which represents a staggering 71.19% decrease year-on-year. Revenue also fell dramatically to ₹0.40 crore, down 61.54% from the previous year. This marks the third consecutive quarter of declining revenues, with previous quarters showing near-zero sales.<BR><BR>The company's profit after tax (PAT) margin has also compressed to 42.50%, down from 56.73% in the same quarter last year, indicating that while they managed to maintain some profitability, it is at a much lower level than before. Furthermore, the return on equity is alarmingly low at just 0.59%, highlighting severe inefficiencies in generating returns for shareholders.<BR><BR>Overall, the financial results reflect a company in operational distress, struggling to maintain its business model amid significant revenue challenges. The absence of institutional holdings and a lack of confidence from professional investors further exacerbate the situation, suggesting that Sofcom Systems is facing critical challenges that could jeopardize its future viability.

When is the next results date for Sofcom Systems Ltd?

The next results date for Sofcom Systems Ltd is 19 May 2026.

The next results date for Sofcom Systems Ltd is scheduled for 19 May 2026.

How has been the historical performance of Sofcom Systems?

Sofcom Systems showed strong financial performance in March 2025, with net sales and operating income of 8.28 crore, a profit after tax of 0.78 crore, and a profit margin of 9.42%. The company is debt-free, with total assets of 95.59 crore and shareholder's funds of 93.35 crore.

Answer:<BR>The historical performance of Sofcom Systems shows a significant improvement in its financial metrics for the year ending March 2025.<BR><BR>Breakdown:<BR>In March 2025, Sofcom Systems reported net sales of 8.28 crore, with total operating income also at 8.28 crore. The total expenditure, excluding depreciation, was 7.57 crore, leading to an operating profit (PBDIT) of 0.72 crore. After accounting for a minor tax expense of 0.06 crore, the profit after tax stood at 0.78 crore, resulting in a profit after tax margin of 9.42%. The earnings per share (EPS) was reported at 0.85, with a book value per share of 37.82. On the balance sheet, total assets reached 95.59 crore, a substantial increase from previous years, while total liabilities were 2.50 crore, indicating a strong equity position with shareholder's funds of 93.35 crore. The company had no long-term borrowings, reflecting a debt-free status. Overall, Sofcom Systems demonstrated a robust financial performance in March 2025, with significant growth in both revenue and net profit compared to prior periods.

Is Sofcom Systems overvalued or undervalued?

As of August 18, 2025, Sofcom Systems is overvalued with a PE ratio of 216.60 and a PEG ratio of 0.37, indicating that its high stock price is not justified despite a strong YTD return of 46.70%.

As of 18 August 2025, Sofcom Systems has moved from a fair valuation to a very expensive one. The company is currently overvalued, with a PE ratio of 216.60, an EV to EBIT of 216.76, and an EV to Sales ratio of 107.84. Compared to its peers, Sofcom Systems significantly outpaces companies like Life Insurance, which has a PE ratio of 11.55, and Bajaj Finance, with a PE ratio of 32.28, highlighting its overvaluation.<BR><BR>Despite a strong performance in terms of stock returns, with a YTD increase of 46.70% compared to the Sensex's 4.01%, the underlying financial ratios suggest that the current price is not justified. The PEG ratio of 0.37 indicates that growth expectations may not be sufficient to support such a high valuation. Overall, Sofcom Systems appears to be overvalued in the current market context.

How big is Sofcom Systems?

As of 24th July, Sofcom Systems Ltd has a market capitalization of 183.00 Cr, with recent quarterly net sales of 1.04 Cr and a net profit of 0.59 Cr.

As of 24th July, <BR><BR>Market Cap: Sofcom Systems Ltd has a market capitalization of 183.00 Cr, classifying it as a Micro Cap company.<BR><BR>Recent Quarterly Performance: For the latest quarter ending March 2025, Sofcom Systems reported Net Sales of 1.04 Cr and a Net Profit of 0.59 Cr.<BR><BR>Balance Sheet Snapshot: The latest annual reporting period is March 2022, with Shareholder's Funds amounting to 0.55 Cr and Total Assets of 3.50 Cr.

What does Sofcom Systems do?

Sofcom Systems Ltd is an IT consulting and software development company, incorporated in 1995, with a market cap of INR 202 Cr. As of March 2025, it reported net sales of 8 Cr and a net profit of 6 Cr.

Overview:<BR>Sofcom Systems Ltd is engaged in IT consulting and software development, operating within the Computers - Software & Consulting industry and classified as a Micro Cap company.<BR><BR>History:<BR>Sofcom Systems Ltd was incorporated in June 1995 and has been providing consultancy for software development through services, turnkey projects, and products for both domestic and export markets. The latest quarterly results reported net sales and net profit for March 2025.<BR><BR>Financial Snapshot:<BR>- Net Sales: 8 Cr (Quarterly Results - Mar 2025)<BR>- Net Profit: 6 Cr (Quarterly Results - Mar 2025)<BR>- Market Cap: INR 202 Cr (Micro Cap)<BR><BR>Key Metrics:<BR>- P/E: 197.00<BR>- Industry P/E: 23<BR>- Dividend Yield: 0.00%<BR>- Debt-Equity: 0.00<BR>- Return on Equity: 0.82%<BR>- Price to Book: 2.10<BR><BR>Contact Details:<BR>Address: D-36 Subhash Marg Flat No 802, Sheel Mohar Apartment C-Scheme Jalpur Rajasthan : 302001<BR>Tel: 91-141-2340221/2370947<BR>Email: sofcomsystemsltd@gmail.com<BR>Website: http://www.softcomsystems.com

Who are the top shareholders of the Sofcom Systems?

The top shareholders of Sofcom Systems are primarily individual investors, holding 93.15% of the shares. Notably, Mohmedshafi Gulammohamed Jardosh holds 6.61%, with no institutional or pledged promoter holdings.

The top shareholders of Sofcom Systems primarily consist of individual investors, who hold a significant 93.15% of the company's shares. Among public shareholders, Mohmedshafi Gulammohamed Jardosh stands out with a holding of 6.61%. There are no institutional holdings from mutual funds or foreign institutional investors, and there are no pledged promoter holdings or a promoter with the highest stake.

Who are in the management team of Sofcom Systems?

As of March 2022, the management team of Sofcom Systems includes Rakesh Pandey, Ganeshprasad Pratap Murarika, and Anil Nahar as Independent Directors, Satyam Jaiswal as Additional Managing Director, and Shiwaginee Jaiswal as Additional Non-Executive Director.

As of March 2022, the management team of Sofcom Systems includes the following individuals:<BR><BR>1. Rakesh Pandey - Independent Director<BR>2. Ganeshprasad Pratap Murarika - Independent Director<BR>3. Anil Nahar - Independent Director<BR>4. Satyam Jaiswal - Additional Managing Director<BR>5. Shiwaginee Jaiswal - Additional Non-Executive Director<BR><BR>These members play various roles within the company's governance structure.

What is the technical trend for Sofcom Systems?

As of June 6, 2025, Sofcom Systems shows a mildly bullish trend, supported by a bullish MACD and moving averages, though the RSI indicates a lack of momentum and Dow Theory reveals uncertainty.

As of 6 June 2025, the technical trend for Sofcom Systems has changed from bullish to mildly bullish. The weekly MACD remains bullish, supporting a positive outlook, while the daily moving averages also indicate bullish sentiment. However, the RSI shows no signal on both weekly and monthly time frames, suggesting a lack of momentum. Bollinger Bands are mildly bullish on both weekly and monthly charts, indicating a potential for continued upward movement but with caution. The KST is bullish on both time frames, reinforcing the mildly bullish stance. Dow Theory indicates no clear trend in either time frame, which adds uncertainty. Overall, the current technical stance is mildly bullish, driven primarily by the bullish MACD and moving averages.

Has Sofcom Systems declared dividend?

No Dividend History Available

Who are the peers of the Sofcom Systems?

Sofcom Systems' peers include TCS, Infosys, HCL Technologies, Wipro, Tech Mahindra, Equippp Social, Cressanda Railwa, DCM, Shradha AI Tech, and Trust Fintech. Sofcom Systems has the highest 1-year return at 152.20%, significantly outperforming its peers.

Peers: The peers of Sofcom Systems are TCS, Infosys, HCL Technologies, Wipro, Tech Mahindra, Equippp Social, Cressanda Railwa, DCM, Shradha AI Tech, and Trust Fintech.<BR><BR>Quality Snapshot: Excellent management risk is observed at TCS, Infosys, and HCL Technologies, while Good management risk is found at Wipro, Tech Mahindra, and Trust Fintech. Average management risk is present at Sofcom Systems, Cressanda Railwa, DCM, and Shradha AI Tech, and Below Average management risk is noted at Equippp Social. In terms of Growth, Excellent growth is seen at Equippp Social, while Good growth is noted at Infosys, Wipro, Tech Mahindra, and Shradha AI Tech. Average growth is found at Sofcom Systems and HCL Technologies, and Below Average growth is observed at Cressanda Railwa and DCM. Finally, Excellent capital structure is present at TCS, Infosys, HCL Technologies, Wipro, Tech Mahindra, and Shradha AI Tech, while Sofcom Systems has an Excellent capital structure, and the rest have Below Average or Average capital structures.<BR><BR>Return Snapshot: Sofcom Systems has the highest 1-year return at 152.20%, while Cressanda Railwa has the lowest at -59.15%. Sofcom Systems' return significantly outperforms all peers. Additionally, Equippp Social, Cressanda Railwa, and DCM have negative six-month returns.