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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Saksoft Ltd

Basic Stock Data

Last Updated: June 17, 2024, 8:15 pm

Market Cap 3,085 Cr.
Current Price 291
High / Low402/210
Stock P/E32.1
Book Value 47.7
Dividend Yield0.27 %
ROCE27.7 %
ROE21.1 %
Face Value 1.00
PEG Ratio1.58

Competitors of Saksoft Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
FCS Software Solutions Ltd 663 Cr. 3.886.69/2.08121 2.510.00 %3.13 %1.39 % 1.00
Covidh Technologies Ltd 2.15 Cr. 2.032.03/1.48 0.210.00 %%% 10.0
Inspirisys Solutions Ltd 374 Cr. 94.4128/57.124.2 7.390.00 %29.0 %148 % 10.0
Birlasoft Ltd 18,717 Cr. 678862/33330.0 1100.52 %30.1 %22.7 % 2.00
Ceinsys Tech Ltd 808 Cr. 494699/18223.1 1430.40 %21.8 %16.2 % 10.0
Industry Average37,555.25 Cr718.8164.58125.730.72%20.22%19.80%6.86

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales97102115124139148164172182183190193195
Expenses828795102117126138144150149156160162
Operating Profit16161922222226273335343333
OPM %16%15%17%18%16%15%16%16%18%19%18%17%17%
Other Income37-00333212412
Interest1111101110111
Depreciation2122222333333
Profit before tax16211720222326273033343031
Tax %21%15%23%26%21%23%25%26%16%24%25%25%26%
Net Profit13181315181819202525252323
EPS in Rs1.191.681.251.421.671.691.831.882.362.382.382.132.19

Last Updated: June 9, 2024, 10:33 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:02 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales123159224231244260286358359386480666749
Expenses110142201205208227246299298321401557615
Operating Profit1317232636334059616479108134
OPM %11%11%10%11%15%13%14%17%17%17%16%16%18%
Other Income11122222441197
Interest4444455553323
Depreciation212111347771011
Profit before tax912192333293452535880105127
Tax %22%12%21%23%34%30%28%27%26%22%21%22%
Net Profit7111517222024383945638298
EPS in Rs0.691.071.461.611.781.632.083.483.674.336.007.769.25
Dividend Payout %14%19%17%16%17%18%16%11%12%11%9%9%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)57.14%36.36%13.33%29.41%-9.09%20.00%58.33%2.63%15.38%40.00%30.16%
Change in YoY Net Profit Growth (%)0.00%-20.78%-23.03%16.08%-38.50%29.09%38.33%-55.70%12.75%24.62%-9.84%

Growth

Compounded Sales Growth
10 Years:13%
5 Years:16%
3 Years:25%
TTM:14%
Compounded Profit Growth
10 Years:21%
5 Years:21%
3 Years:28%
TTM:17%
Stock Price CAGR
10 Years:41%
5 Years:56%
3 Years:82%
1 Year:-6%
Return on Equity
10 Years:20%
5 Years:21%
3 Years:22%
Last Year:21%

Last Updated: June 17, 2024, 2:45 pm

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

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

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow13.00-32.00-9.00-17.000.00-14.00-8.0018.0033.0029.0058.0094.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

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%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters69.11%68.54%68.31%68.31%68.31%68.15%68.12%66.86%66.86%66.66%66.64%66.64%
FIIs2.19%3.75%3.69%3.87%3.70%3.83%3.71%4.76%4.72%3.96%3.93%4.00%
DIIs0.00%0.00%0.36%0.36%0.36%0.28%0.33%0.37%0.00%0.00%0.03%0.00%
Public23.63%22.64%22.58%22.41%22.58%22.71%22.80%22.97%23.38%24.36%24.37%24.35%
Others5.08%5.07%5.05%5.05%5.05%5.04%5.04%5.04%5.04%5.02%5.02%5.01%
No. of Shareholders15,54926,35427,27227,59527,43832,44443,57751,68871,71884,67188,86592,699

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Motilal Oswal Nifty Microcap 250 Index Fund31,6200.191.0731,6202024-06-150%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.0010.0010.0010.00
Basic EPS (Rs.)9.598.1863.3745.6838.67
Diluted EPS (Rs.)9.117.5358.2942.5236.67
Cash EPS (Rs.)10.739.1670.1552.3346.19
Book Value[Excl.RevalReserv]/Share (Rs.)50.1840.30318.28260.38207.36
Book Value[Incl.RevalReserv]/Share (Rs.)50.1840.30318.28260.38207.36
Revenue From Operations / Share (Rs.)75.6166.31480.09387.43360.84
PBDIT / Share (Rs.)14.2611.7190.0368.7965.29
PBIT / Share (Rs.)13.0810.7283.1062.0957.98
PBT / Share (Rs.)12.7310.5080.3358.6452.81
Net Profit / Share (Rs.)9.558.1763.2245.6338.87
NP After MI And SOA / Share (Rs.)9.558.1763.2245.6338.67
PBDIT Margin (%)18.8517.6618.7517.7518.09
PBIT Margin (%)17.2916.1617.3016.0216.06
PBT Margin (%)16.8315.8416.7315.1314.63
Net Profit Margin (%)12.6212.3113.1611.7710.77
NP After MI And SOA Margin (%)12.6212.3113.1611.7710.71
Return on Networth / Equity (%)19.0220.2619.8617.5218.64
Return on Capital Employeed (%)23.0925.2124.0721.3324.04
Return On Assets (%)12.2214.4313.7012.4412.67
Long Term Debt / Equity (X)0.010.000.010.070.11
Total Debt / Equity (X)0.010.000.010.070.12
Asset Turnover Ratio (%)1.120.620.580.530.53
Current Ratio (X)1.942.312.172.532.31
Quick Ratio (X)1.942.312.172.532.31
Dividend Payout Ratio (NP) (%)0.007.948.685.4721.60
Dividend Payout Ratio (CP) (%)0.007.087.834.7718.16
Earning Retention Ratio (%)0.0092.0691.3294.5378.40
Cash Earning Retention Ratio (%)0.0092.9292.1795.2381.84
Interest Coverage Ratio (X)40.7453.8932.4419.9112.63
Interest Coverage Ratio (Post Tax) (X)28.2838.5723.7814.218.52
Enterprise Value (Cr.)2382.461310.80805.07288.88116.80
EV / Net Operating Revenue (X)3.131.971.680.740.32
EV / EBITDA (X)16.5911.158.944.221.80
MarketCap / Net Operating Revenue (X)3.372.191.860.930.37
Retention Ratios (%)0.0092.0591.3194.5278.39
Price / BV (X)5.083.602.811.380.65
Price / Net Operating Revenue (X)3.372.191.860.930.37
EarningsYield0.030.050.070.120.28

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 323.95

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 11.32% compared to the current price 291

Intrinsic Value: 389.74

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 33.93% compared to the current price ₹291

Last 5 Year EPS CAGR: 20.31%

*Investments are subject to market risks

Strength and Weakness

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 (203.08 cr) compared to borrowings (35.00 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (348.08 cr) and profit (48.77 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 76.00, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Saksoft Ltd:
    1. Net Profit Margin: 12.62%
      • 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: 23.09% (Industry Average ROCE: %)
      • 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. ROE%: 19.02% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 28.28
      • 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.
    5. Quick Ratio: 1.94
      • 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.
    6. ✗ Stock P/E: 32.1 (Industry average Stock P/E: )
      • 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.
    7. Total Debt / Equity: 0.01
      • 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.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

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

FAQ

What is the latest fair value of Saksoft Ltd?

The latest fair value of Saksoft Ltd is ₹323.95.

What is the Market Cap of Saksoft Ltd?

The Market Cap of Saksoft Ltd is 3,085 Cr..

What is the current Stock Price of Saksoft Ltd as on 21 June 2024?

The current stock price of Saksoft Ltd as on 21 June 2024 is ₹291.

What is the High / Low of Saksoft Ltd stocks in FY 2024?

In FY 2024, the High / Low of Saksoft Ltd stocks is 402/210.

What is the Stock P/E of Saksoft Ltd?

The Stock P/E of Saksoft Ltd is 32.1.

What is the Book Value of Saksoft Ltd?

The Book Value of Saksoft Ltd is 47.7.

What is the Dividend Yield of Saksoft Ltd?

The Dividend Yield of Saksoft Ltd is 0.27 %.

What is the ROCE of Saksoft Ltd?

The ROCE of Saksoft Ltd is 27.7 %.

What is the ROE of Saksoft Ltd?

The ROE of Saksoft Ltd is 21.1 %.

What is the Face Value of Saksoft Ltd?

The Face Value of Saksoft Ltd is 1.00.

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