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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Softtech Engineers Ltd

About the Company - Softtech Engineers Ltd

SoftTech Engineers Ltd. is a Public Limited Listed company incorporated on 17/06/1996 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L30107PN1996PLC016718 and registration number is 016718. Currently Company is involved in the business activities of Providing software support and maintenance to the clients. Company’s Total Operating Revenue is Rs. 57.46 Cr. and Equity Capital is Rs. 10.15 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwareSoftTech Towers, S NO 1/1A/7 8 15 16 17 Plot No. B,C,D, Pune Maharashtra 411045investors@softech-engr.com
http://www.softtech-engr.com
Management
NamePosition Held
Mr. Vijay GuptaChairman & Managing Director
Mrs. Priti GuptaWhole Time Director
Mr. Rahul GuptaIndependent Director
Mr. Sridhar PillalamarriIndependent Director
Mr. Sundararajan SrinivasanIndependent Director
Mr. Pratik PatelWhole Time Director
Dr. R K SinghIndependent Director
Mr. Garth BrosnanNominee Director

SoftTech Engineers Ltd. Share Price Update

Share PriceValue
Today₹260.00
Previous Day₹264.35

Basic Stock Data of Softtech Engineers Ltd

Market Cap 305 Cr.
Current Price 300
High / Low306/122
Stock P/E137
Book Value 122
Dividend Yield0.00 %
ROCE7.85 %
ROE3.91 %
Face Value 10.0

Data Source: screener.in

Competitors of Softtech Engineers Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Vakrangee Ltd 2,792 Cr. 26.432.2/13.31,252 1.130.19 %2.65 %0.87 % 1.00
Persistent Systems Ltd 65,256 Cr. 8,4838,980/3,95963.4 5740.47 %30.3 %25.3 % 10.0
Onward Technologies Ltd 1,293 Cr. 575740/26837.5 84.60.52 %10.4 %6.67 % 10.0
FCS Software Solutions Ltd 882 Cr. 5.166.69/1.84573 2.090.00 %0.96 %0.35 % 1.00
Avance Technologies Ltd 289 Cr. 1.461.46/0.04106 1.880.00 %%% 1.00
Industry Average14,102.40 Cr1,818.20406.38132.740.24%8.86%6.64%4.60

Softtech Engineers Ltd Quarterly Results

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales13.6311.0215.4214.4416.5812.1417.1817.7518.3418.8119.12
Expenses10.867.5511.8210.7612.078.3912.0212.3513.2614.0613.32
Operating Profit2.773.473.603.684.513.755.165.405.084.755.80
OPM %20.32%31.49%23.35%25.48%27.20%30.89%30.03%30.42%27.70%25.25%30.33%
Other Income0.780.150.970.390.520.450.290.280.410.570.48
Interest0.750.650.750.700.780.720.931.091.181.201.20
Depreciation1.771.871.801.832.052.512.542.602.813.273.41
Profit before tax1.031.102.021.542.200.971.981.991.500.851.67
Tax %37.86%30.91%27.72%21.43%32.27%27.84%29.29%29.15%91.33%40.00%41.32%
Net Profit0.650.761.461.211.480.701.391.400.130.500.98
EPS in Rs0.690.831.551.191.600.701.541.400.310.541.03

Softtech Engineers Ltd Quarterly Chart

Softtech Engineers Ltd Profit & Loss

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales62.7657.9541.5757.4665.4074.02
Expenses47.1243.7129.6342.0545.8852.99
Operating Profit15.6414.2411.9415.4119.5221.03
OPM %24.92%24.57%28.72%26.82%29.85%28.41%
Other Income0.790.970.981.861.431.74
Interest1.831.853.323.024.064.67
Depreciation4.043.725.507.6410.4612.09
Profit before tax10.569.644.106.616.436.01
Tax %29.64%32.68%37.07%29.65%43.70%
Net Profit7.426.492.584.653.623.01
EPS in Rs7.876.892.904.723.943.28
Dividend Payout %6.35%-0.00%-0.00%-0.00%-0.00%

Softtech Engineers Ltd Profit & Loss Yearly Chart

Softtech Engineers Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:%
3 Years:4%
TTM:17%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:-18%
TTM:-55%
Stock Price CAGR
10 Years:%
5 Years:40%
3 Years:46%
1 Year:69%
Return on Equity
10 Years:%
5 Years:%
3 Years:5%
Last Year:4%

Softtech Engineers Ltd Balance Sheet

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital9.429.429.4710.1510.1610.16
Reserves51.3657.3460.2974.5587.26113.51
Borrowings15.7928.1336.5935.4148.0943.59
Other Liabilities8.4412.4114.0813.4117.3316.26
Total Liabilities85.01107.30120.43133.52162.84183.52
Fixed Assets8.8210.9324.6731.9942.6748.33
CWIP5.116.063.083.785.050.00
Investments10.938.565.145.6211.7210.65
Other Assets60.1581.7587.5492.13103.40124.54
Total Assets85.01107.30120.43133.52162.84183.52

Softtech Engineers Ltd Reserves and Borrowings Chart

Softtech Engineers Ltd Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 3.63-6.285.4711.607.41
Cash from Investing Activity -18.55-5.37-6.51-16.39-24.85
Cash from Financing Activity 15.0410.411.175.1617.55
Net Cash Flow0.12-1.240.130.370.11

Softtech Engineers Ltd Financial Efficiency Indicators

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days109.45226.68293.00184.72145.94
Inventory Days-0.00-0.00-0.00-0.00-0.00
Days Payable
Cash Conversion Cycle109.45226.68293.00184.72145.94
Working Capital Days213.32348.81523.75396.51410.71
ROCE %13.40%7.33%8.41%7.85%

Softtech Engineers Ltd Financial Efficiency Indicators Chart

Softtech Engineers Ltd Share Holding Pattern

MonthMar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters40.45%40.45%40.46%40.45%40.44%40.44%40.44%32.05%
FIIs0.09%0.09%0.09%0.09%0.09%0.09%0.09%0.08%
DIIs0.87%0.20%0.00%0.00%0.00%0.00%0.00%0.00%
Public58.59%59.26%59.45%59.46%59.45%59.45%59.46%67.87%
No. of Shareholders4586677007228132,1371,9932,644

Softtech Engineers Ltd Shareholding Pattern Chart

No. of Softtech Engineers Ltd Shareholders

This stock is not held by any mutual fund

Softtech Engineers Ltd ROCE Trend

Softtech Engineers Ltd EPS Trend

Softtech Engineers Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)3.814.892.886.898.10
Diluted EPS (Rs.)3.784.882.876.848.04
Cash EPS (Rs.)13.8612.118.0510.8412.17
Book Value[Excl.RevalReserv]/Share (Rs.)93.1883.1273.4370.8464.52
Book Value[Incl.RevalReserv]/Share (Rs.)93.1883.1273.4370.8464.52
Revenue From Operations / Share (Rs.)64.4056.5843.9161.5066.60
PBDIT / Share (Rs.)20.4916.8712.2015.9817.28
PBIT / Share (Rs.)10.199.347.0312.0312.99
PBT / Share (Rs.)6.336.514.5210.2311.20
Net Profit / Share (Rs.)3.564.582.886.897.88
NP After MI And SOA / Share (Rs.)3.944.712.886.897.88
PBDIT Margin (%)31.8229.8127.7725.9725.94
PBIT Margin (%)15.8216.5016.0019.5519.50
PBT Margin (%)9.8211.5010.2816.6316.82
Net Profit Margin (%)5.528.096.5411.2011.83
NP After MI And SOA Margin (%)6.118.336.5511.2011.83
Return on Networth / Equity (%)4.195.653.929.7212.21
Return on Capital Employeed (%)8.619.067.3513.4218.23
Return On Assets (%)2.453.582.356.048.73
Long Term Debt / Equity (X)0.090.190.280.250.09
Total Debt / Equity (X)0.410.370.430.410.20
Asset Turnover Ratio (%)0.430.450.360.590.00
Current Ratio (X)2.202.823.063.333.34
Quick Ratio (X)2.202.823.063.333.34
Dividend Payout Ratio (NP) (%)0.000.000.007.256.34
Dividend Payout Ratio (CP) (%)0.000.000.004.614.10
Earning Retention Ratio (%)0.000.000.0092.7593.66
Cash Earning Retention Ratio (%)0.000.000.0095.3995.90
Interest Coverage Ratio (X)5.305.964.868.909.67
Interest Coverage Ratio (Post Tax) (X)1.922.622.154.845.41
Enterprise Value (Cr.)185.15133.08127.8763.4362.95
EV / Net Operating Revenue (X)2.832.323.081.091.00
EV / EBITDA (X)8.907.7711.074.213.87
MarketCap / Net Operating Revenue (X)2.241.792.360.620.82
Retention Ratios (%)0.000.000.0092.7493.65
Price / BV (X)1.541.211.410.540.84
Price / Net Operating Revenue (X)2.241.792.360.620.82
EarningsYield0.020.040.020.170.14

Softtech Engineers Ltd Profitability Ratios (%)

Softtech Engineers Ltd Liquidity Ratios

Softtech Engineers Ltd Liquidity Ratios (%)

Softtech Engineers Ltd Interest Coverage Ratios (X)

Softtech Engineers Ltd Valuation Ratios

Fair Value / Intrinsic Value of Softtech Engineers Ltd

Fair Value: ₹666.59

The stock is undervalued by 122.20% compared to the current price ₹300

*Investments are subject to market risks

Strength and Weakness of Softtech Engineers Ltd

StrengthWeakness
  1. The company has higher reserves (74.05 cr) compared to borrowings (34.60 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (59.86 cr) and profit (7.23 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 10.32 and average Dividend Yield of 17.47%.
  2. The stock has a low average ROCE of 7.40%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 378.62, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 191.96, which may not be favorable.

Should I Buy Softtech Engineers Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Softtech Engineers Ltd:
    1. Net Profit Margin: 5.52%
      • 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: 8.61% (Industry Average ROCE: 15.81%)
      • 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): 1.92
      • 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: 2.20
      • 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: 129 (Industry average Stock P/E: 78.28)
      • 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: 0.41
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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 Softtech Engineers 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