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Last Updated on: 24 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Softtech Engineers Ltd

Basic Stock Data

Last Updated: June 17, 2024, 8:13 pm

Market Cap 423 Cr.
Current Price 330
High / Low378/126
Stock P/E127
Book Value 98.4
Dividend Yield0.00 %
ROCE6.62 %
ROE2.98 %
Face Value 10.0
PEG Ratio-7.68

Competitors of Softtech Engineers Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ajel Ltd 18.5 Cr. 15.820.7/7.51 12.90.00 %0.55 %0.91 % 10.0
Spacenet Enterprises India Ltd 1,855 Cr. 33.839.4/15.4258 1.840.00 %10.6 %10.4 % 1.00
Trigyn Technologies Ltd 410 Cr. 133168/92.120.5 2280.00 %5.72 %2.89 % 10.0
Tera Software Ltd 88.8 Cr. 70.982.5/39.621.0 89.90.00 %%% 10.0
Bharatiya Global Infomedia Ltd 4.58 Cr. 2.894.90/1.95 55.00.00 %1.86 %2.10 % 10.0
Industry Average37,804.20 Cr727.7764.66125.110.72%20.44%20.00%6.76

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales13.6311.0215.4214.4416.5812.1417.1817.7518.3418.8119.1218.4822.36
Expenses10.867.5511.8210.7612.078.3912.0212.3513.2614.0613.3213.5416.50
Operating Profit2.773.473.603.684.513.755.165.405.084.755.804.945.86
OPM %20.32%31.49%23.35%25.48%27.20%30.89%30.03%30.42%27.70%25.25%30.33%26.73%26.21%
Other Income0.780.150.970.390.520.450.290.280.410.570.480.610.64
Interest0.750.650.750.700.780.720.931.091.181.201.201.061.10
Depreciation1.771.871.801.832.052.512.542.602.813.273.413.253.51
Profit before tax1.031.102.021.542.200.971.981.991.500.851.671.241.89
Tax %37.86%30.91%27.72%21.43%32.27%27.84%29.29%29.15%91.33%40.00%41.32%50.81%34.39%
Net Profit0.650.761.461.211.480.701.391.400.130.500.980.611.23
EPS in Rs0.690.831.551.191.600.701.541.400.310.541.030.550.99

Last Updated: June 9, 2024, 12:36 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 5:18 am

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales62.7657.9541.5757.4665.4078.78
Expenses47.1243.7129.6342.0545.8857.42
Operating Profit15.6414.2411.9415.4119.5221.36
OPM %24.92%24.57%28.72%26.82%29.85%27.11%
Other Income0.790.970.981.861.432.29
Interest1.831.853.323.024.064.56
Depreciation4.043.725.507.6410.4613.44
Profit before tax10.569.644.106.616.435.65
Tax %29.64%32.68%37.07%29.65%43.70%40.88%
Net Profit7.426.492.584.653.623.33
EPS in Rs7.876.892.904.723.942.79
Dividend Payout %6.35%0.00%0.00%0.00%0.00%0.00%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-12.53%-60.25%80.23%-22.15%-8.01%
Change in YoY Net Profit Growth (%)0.00%-47.71%140.48%-102.38%14.14%

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:43%
3 Years:48%
1 Year:112%
Return on Equity
10 Years:%
5 Years:%
3 Years:5%
Last Year:4%

Last Updated: April 16, 2024, 6:22 pm

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

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

Free Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-0.15-13.89-24.65-20.00-28.57-17.15

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 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%

Financial Efficiency Indicators Chart

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

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)3.173.814.892.886.89
Diluted EPS (Rs.)3.173.784.882.876.84
Cash EPS (Rs.)13.0813.8612.118.0510.84
Book Value[Excl.RevalReserv]/Share (Rs.)97.5893.1883.1273.4370.84
Book Value[Incl.RevalReserv]/Share (Rs.)97.5893.1883.1273.4370.84
Revenue From Operations / Share (Rs.)61.4564.4056.5843.9161.50
PBDIT / Share (Rs.)18.4420.4916.8712.2015.98
PBIT / Share (Rs.)7.9610.199.347.0312.03
PBT / Share (Rs.)4.406.336.514.5210.23
Net Profit / Share (Rs.)2.593.564.582.886.89
NP After MI And SOA / Share (Rs.)2.793.944.712.886.89
PBDIT Margin (%)30.0131.8229.8127.7725.97
PBIT Margin (%)12.9415.8216.5016.0019.55
PBT Margin (%)7.169.8211.5010.2816.63
Net Profit Margin (%)4.225.528.096.5411.20
NP After MI And SOA Margin (%)4.546.118.336.5511.20
Return on Networth / Equity (%)2.864.195.653.929.72
Return on Capital Employeed (%)7.438.619.067.3513.42
Return On Assets (%)1.832.453.582.356.04
Long Term Debt / Equity (X)0.030.090.190.280.25
Total Debt / Equity (X)0.250.410.370.430.41
Asset Turnover Ratio (%)0.440.430.450.360.59
Current Ratio (X)1.862.202.823.063.33
Quick Ratio (X)1.862.202.823.063.33
Dividend Payout Ratio (NP) (%)0.000.000.000.007.25
Dividend Payout Ratio (CP) (%)0.000.000.000.004.61
Earning Retention Ratio (%)0.000.000.000.0092.75
Cash Earning Retention Ratio (%)0.000.000.000.0095.39
Interest Coverage Ratio (X)5.195.305.964.868.90
Interest Coverage Ratio (Post Tax) (X)1.731.922.622.154.84
Enterprise Value (Cr.)413.19185.15133.08127.8763.43
EV / Net Operating Revenue (X)5.252.832.323.081.09
EV / EBITDA (X)17.488.907.7711.074.21
MarketCap / Net Operating Revenue (X)4.862.241.792.360.62
Retention Ratios (%)0.000.000.000.0092.74
Price / BV (X)3.061.541.211.410.54
Price / Net Operating Revenue (X)4.862.241.792.360.62
EarningsYield0.010.020.040.020.17

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 379.85

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: 15.11% compared to the current price 330

Intrinsic Value: 317.02

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.

Overvalued: 3.93% compared to the current price ₹330

Last 5 Year EPS CAGR: -16.54%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (74.01 cr) compared to borrowings (33.75 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (60.65 cr) and profit (7.17 cr) over the years.
  1. The stock has a low average ROCE of 7.40%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 378.62, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 191.96, 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 Softtech Engineers Ltd:
    1. Net Profit Margin: 4.22%
      • 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: 7.43% (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%: 2.86% (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): 1.73
      • 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: 1.86
      • 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: 127 (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: 0.25
      • 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

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

FAQ

What is the latest fair value of Softtech Engineers Ltd?

The latest fair value of Softtech Engineers Ltd is ₹379.85.

What is the Market Cap of Softtech Engineers Ltd?

The Market Cap of Softtech Engineers Ltd is 423 Cr..

What is the current Stock Price of Softtech Engineers Ltd as on 24 June 2024?

The current stock price of Softtech Engineers Ltd as on 24 June 2024 is ₹330.

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

In FY 2024, the High / Low of Softtech Engineers Ltd stocks is 378/126.

What is the Stock P/E of Softtech Engineers Ltd?

The Stock P/E of Softtech Engineers Ltd is 127.

What is the Book Value of Softtech Engineers Ltd?

The Book Value of Softtech Engineers Ltd is 98.4.

What is the Dividend Yield of Softtech Engineers Ltd?

The Dividend Yield of Softtech Engineers Ltd is 0.00 %.

What is the ROCE of Softtech Engineers Ltd?

The ROCE of Softtech Engineers Ltd is 6.62 %.

What is the ROE of Softtech Engineers Ltd?

The ROE of Softtech Engineers Ltd is 2.98 %.

What is the Face Value of Softtech Engineers Ltd?

The Face Value of Softtech Engineers Ltd is 10.0.

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