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Last Updated on: 28 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Saksoft Ltd

About the Company - Saksoft Ltd

Saksoft Ltd. is a Public Limited Listed company incorporated on 24/11/1999 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L72200TN1999PLC054429 and registration number is 054429. Currently Company is involved in the business activities of Computer programming, consultancy and related activities. Company’s Total Operating Revenue is Rs. 159.88 Cr. and Equity Capital is Rs. 10.54 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwareGlobal Infocity Park, Block A, 2nd Floor, Chennai (Madras) Tamil Nadu 600096investorqueries@saksoft.co.in
http://www.saksoft.com
Management
NamePosition Held
Mr. Aditya KrishnaChairman & Managing Director
Ms. Kanika KrishnaNon Executive Director
Mr. Ajit ThomasInd. Non-Executive Director
Mr. Ganesh ChellaInd. Non-Executive Director
Mr. V V R BabuInd. Non-Executive Director
Ms. Malini ThadaniInd. Non-Executive Director

Saksoft Ltd. Share Price Update

Share PriceValue
Today₹286.15
Previous Day₹301.20

Basic Stock Data of Saksoft Ltd

Market Cap 2,895 Cr.
Current Price 273
High / Low402/138
Stock P/E29.6
Book Value 42.9
Dividend Yield0.25 %
ROCE28.4 %
ROE22.7 %
Face Value 1.00

Data Source: screener.in

Competitors of Saksoft Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Onward Technologies Ltd 1,293 Cr. 575740/26837.5 84.60.52 %10.4 %6.67 % 10.0
Accedere Ltd 35.3 Cr. 70.189.0/49.4 8.200.00 %2.27 %0.73 % 10.0
Wipro Ltd 2,79,118 Cr. 534546/35224.7 1330.19 %17.7 %15.9 % 2.00
Ramco Systems Ltd 1,091 Cr. 308357/188 1010.00 %32.6 %37.1 % 10.0
Xchanging Solutions Ltd 1,609 Cr. 144177/51.6130 46.020.8 %9.23 %6.96 % 10.0
Industry Average56,629.26 Cr326.2238.4474.564.30%14.44%13.47%8.40

Saksoft Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales979797102115124139148164172182183190
Expenses8180828795102117126138144150149155
Operating Profit17181616192222222627333536
OPM %17%18%16%15%17%18%16%15%16%16%18%19%19%
Other Income0037-003332122
Interest1111111011101
Depreciation2221222223333
Profit before tax14151621172022232627303334
Tax %24%22%21%15%23%26%21%23%25%26%16%24%25%
Net Profit11121318131518181920252525
EPS in Rs1.021.151.191.681.251.421.671.691.831.882.362.382.38

Saksoft Ltd Quarterly Chart

Saksoft Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales123159224231244260286358359386480666728
Expenses110142201205208227246299298321401557597
Operating Profit1317232636334059616479108130
OPM %11%11%10%11%15%13%14%17%17%17%16%16%18%
Other Income11122222441196
Interest4444455553322
Depreciation212111347771011
Profit before tax912192333293452535880105123
Tax %22%12%21%23%34%30%28%27%26%22%21%22%
Net Profit7111517222024383945638295
EPS in Rs0.691.071.461.611.781.632.083.483.674.336.007.769.00
Dividend Payout %14%19%17%16%17%18%16%11%12%11%9%9%

Saksoft Ltd Profit & Loss Yearly Chart

Saksoft Ltd Growth

Compounded Sales Growth
10 Years:15%
5 Years:18%
3 Years:23%
TTM:20%
Compounded Profit Growth
10 Years:22%
5 Years:31%
3 Years:29%
TTM:31%
Stock Price CAGR
10 Years:42%
5 Years:58%
3 Years:99%
1 Year:86%
Return on Equity
10 Years:19%
5 Years:21%
3 Years:22%
Last Year:23%

Saksoft Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital10101010101010101010101010
Reserves566494100119115138165196249308394444
Borrowings47493243364748412835211412
Other Liabilities27425462625266626971122150232
Total Liabilities140166190216228224263278303365462568699
Fixed Assets8692110122126127149142151159196218354
CWIP0000000000000
Investments011030006101898
Other Assets547379949996114136147195248341336
Total Assets140166190216228224263278303365462568699

Saksoft Ltd Reserves and Borrowings Chart

Saksoft Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 12726222621302756707084
Cash from Investing Activity -1-7-4-19-3-21-14-2-26-11-63-59
Cash from Financing Activity -6-3-234-172-8-14-28-11-24-11
Net Cash Flow4-4-0652810347-1614

Saksoft Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days7211380867471756669618164
Inventory Days
Days Payable
Cash Conversion Cycle7211380867471756669618164
Working Capital Days394823232133293836182720
ROCE %12%14%18%18%23%19%20%27%25%23%26%28%

Saksoft Ltd Financial Efficiency Indicators Chart

Saksoft Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters69.11%69.11%68.54%68.31%68.31%68.31%68.15%68.12%66.86%66.86%66.66%66.64%
FIIs2.15%2.19%3.75%3.69%3.87%3.70%3.83%3.71%4.76%4.72%3.96%3.93%
DIIs0.00%0.00%0.00%0.36%0.36%0.36%0.28%0.33%0.37%0.00%0.00%0.03%
Public23.67%23.63%22.64%22.58%22.41%22.58%22.71%22.80%22.97%23.38%24.36%24.37%
Others5.08%5.08%5.07%5.05%5.05%5.05%5.04%5.04%5.04%5.04%5.02%5.02%
No. of Shareholders10,07115,54926,35427,27227,59527,43832,44443,57751,68871,71884,67188,865

Saksoft Ltd Shareholding Pattern Chart

No. of Saksoft Ltd Shareholders

Saksoft Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Motilal Oswal Nifty Microcap 250 Index Fund316200.191.07

Saksoft Ltd ROCE Trend

Saksoft Ltd EPS Trend

Saksoft Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.0010.0010.0010.0010.00
Basic EPS (Rs.)8.1863.3745.6838.6736.66
Diluted EPS (Rs.)7.5358.2942.5236.6734.67
Cash EPS (Rs.)9.1670.1552.3346.1942.72
Book Value[Excl.RevalReserv]/Share (Rs.)40.30318.28260.38207.36181.19
Book Value[Incl.RevalReserv]/Share (Rs.)40.30318.28260.38207.36181.19
Revenue From Operations / Share (Rs.)66.31480.09387.43360.84360.10
PBDIT / Share (Rs.)11.7190.0368.7965.2961.70
PBIT / Share (Rs.)10.7283.1062.0957.9857.40
PBT / Share (Rs.)10.5080.3358.6452.8152.57
Net Profit / Share (Rs.)8.1763.2245.6338.8738.43
NP After MI And SOA / Share (Rs.)8.1763.2245.6338.6736.66
PBDIT Margin (%)17.6618.7517.7518.0917.13
PBIT Margin (%)16.1617.3016.0216.0615.94
PBT Margin (%)15.8416.7315.1314.6314.59
Net Profit Margin (%)12.3113.1611.7710.7710.67
NP After MI And SOA Margin (%)12.3113.1611.7710.7110.18
Return on Networth / Equity (%)20.2619.8617.5218.6420.78
Return on Capital Employeed (%)25.2124.0721.3324.0426.49
Return On Assets (%)14.4313.7012.4412.6713.08
Long Term Debt / Equity (X)0.000.010.070.110.18
Total Debt / Equity (X)0.000.010.070.120.22
Asset Turnover Ratio (%)0.620.580.530.530.47
Current Ratio (X)2.312.172.532.312.10
Quick Ratio (X)2.312.172.532.312.10
Dividend Payout Ratio (NP) (%)7.948.685.4721.6015.01
Dividend Payout Ratio (CP) (%)7.087.834.7718.1613.44
Earning Retention Ratio (%)92.0691.3294.5378.4084.99
Cash Earning Retention Ratio (%)92.9292.1795.2381.8486.56
Interest Coverage Ratio (X)53.8932.4419.9112.6312.77
Interest Coverage Ratio (Post Tax) (X)38.5723.7814.218.528.95
Enterprise Value (Cr.)1310.80805.07288.88116.80283.10
EV / Net Operating Revenue (X)1.971.680.740.320.79
EV / EBITDA (X)11.158.944.221.804.62
MarketCap / Net Operating Revenue (X)2.191.860.930.370.78
Retention Ratios (%)92.0591.3194.5278.3984.98
Price / BV (X)3.602.811.380.651.59
Price / Net Operating Revenue (X)2.191.860.930.370.78
EarningsYield0.050.070.120.280.13

Saksoft Ltd Profitability Ratios (%)

Saksoft Ltd Liquidity Ratios

Saksoft Ltd Liquidity Ratios (%)

Saksoft Ltd Interest Coverage Ratios (X)

Saksoft Ltd Valuation Ratios

Fair Value / Intrinsic Value of Saksoft Ltd

Fair Value: ₹288.97

The stock is undervalued by 5.85% compared to the current price ₹273

*Investments are subject to market risks

Strength and Weakness of Saksoft Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 21.08%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 29.58, which is a positive sign.
  3. The company has higher reserves (187.85 cr) compared to borrowings (34.85 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (346.46 cr) and profit (48.46 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 54.26 and average Dividend Yield of 16.30%.
  2. The stock has a high average Cash Conversion Cycle of 76.00, which may not be favorable.

Should I Buy Saksoft Ltd Share Now?

  • Based on the analysis of various financial indicators, it may be worth considering investment in Saksoft Ltd:
    1. Net Profit Margin: 12.31% (Higher values are generally favorable)
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 25.21% (Industry Average ROCE: 14.66%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 38.57 (Higher values, preferably > 2, are recommended)
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 2.31 (Higher values, preferably > 1, are recommended)
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✓ Stock P/E: 29.6 (Industry average Stock P/E: 163.84)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.00 (Lower values, preferably < 1, are preferred)
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Saksoft Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE