BSE:532344

Stock Analysis Report

Executive Summary

SoftSol India Limited, together with its subsidiary, SoftSol Resources Inc., provides information and technology services in India and the United States.

Rewards

PE ratio (6.3x) is below the Indian market (13.1x)

Earnings grew by 13.3% over the past year

Risk Analysis

Does not have a meaningful market cap (₹421M)

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has SoftSol India's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532344's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-13.9%

532344

-4.3%

IN Software

-1.5%

IN Market


1 Year Return

-26.3%

532344

-16.0%

IN Software

10.7%

IN Market

Return vs Industry: 532344 underperformed the Indian Software industry which returned -16% over the past year.

Return vs Market: 532344 underperformed the Indian Market which returned 10.7% over the past year.


Shareholder returns

532344IndustryMarket
7 Day-13.9%-4.3%-1.5%
30 Day-23.7%-3.8%-2.7%
90 Day5.3%-1.8%1.3%
1 Year-26.3%-26.3%-15.2%-16.0%12.7%10.7%
3 Year-50.9%-50.9%-15.3%-22.2%22.0%15.1%
5 Year-51.4%-52.4%-0.6%-15.0%34.5%22.0%

Price Volatility Vs. Market

How volatile is SoftSol India's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is SoftSol India undervalued compared to its fair value and its price relative to the market?

6.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 532344's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 532344's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 532344 is good value based on its PE Ratio (6.3x) compared to the Software industry average (11.5x).

PE vs Market: 532344 is good value based on its PE Ratio (6.3x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532344's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532344 is good value based on its PB Ratio (0.3x) compared to the IN Software industry average (0.9x).


Next Steps

Future Growth

How is SoftSol India forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.7%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as SoftSol India has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has SoftSol India performed over the past 5 years?

19.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532344 has a large one-off gain of ₹46.3M impacting its December 31 2019 financial results.

Growing Profit Margin: 532344's current net profit margins (14.1%) are higher than last year (12.1%).


Past Earnings Growth Analysis

Earnings Trend: 532344's earnings have grown by 19.9% per year over the past 5 years.

Accelerating Growth: 532344's earnings growth over the past year (13.3%) is below its 5-year average (19.9% per year).

Earnings vs Industry: 532344 earnings growth over the past year (13.3%) exceeded the Software industry -5.4%.


Return on Equity

High ROE: 532344's Return on Equity (4.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SoftSol India's financial position?


Financial Position Analysis

Short Term Liabilities: 532344's short term assets (₹1.2B) exceed its short term liabilities (₹35.1M).

Long Term Liabilities: 532344's short term assets (₹1.2B) exceed its long term liabilities (₹43.9M).


Debt to Equity History and Analysis

Debt Level: 532344 is debt free.

Reducing Debt: 532344 has no debt compared to 5 years ago when its debt to equity ratio was 1.9%.

Debt Coverage: 532344 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 532344 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 532344 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 532344's debt is covered by short term assets.


Next Steps

Dividend

What is SoftSol India's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.6%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 532344's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 532344's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 532344's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 532344's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 532344 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 532344's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

17.1yrs

Average board tenure


CEO

Bhaskara Madala (73yo)

₹1,810,080

Compensation

Mr. Bhaskara Rao Madala has been a Whole time Director at Softsol India Ltd. since September 2, 1995. Mr. Madala is an authorized representative and signatory of Softsol India for complete affairs since la ...


CEO Compensation Analysis

Compensation vs Market: Bhaskara's total compensation ($USD25.29K) is below average for companies of similar size in the Indian market ($USD50.34K).

Compensation vs Earnings: Bhaskara's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Bhaskara Madala
Whole Time Director0yrs₹1.81m1.6% 6.7m
Tripuraneni Chowdary
Independent Non-Executive Director20.6yrs₹40.00kno data
B. Srinivasan
Independent Non-Executive Director13.6yrs₹50.00kno data
Srinivasa Madala
Chairman0yrsno data8.12% 34.2m
Naga Padma Kilari
Director0.5yrsno datano data

17.1yrs

Average Tenure

73yo

Average Age

Experienced Board: 532344's board of directors are seasoned and experienced ( 17.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SoftSol India Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SoftSol India Limited
  • Ticker: 532344
  • Exchange: BSE
  • Founded: 1990
  • Industry: Application Software
  • Sector: Software
  • Market Cap: ₹420.563m
  • Shares outstanding: 16.82m
  • Website: https://www.softsolindia.com

Location

  • SoftSol India Limited
  • Software Units Layout
  • Plot No. 4
  • Hyderabad
  • Andhra Pradesh
  • 500081
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532344BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2004

Biography

SoftSol India Limited, together with its subsidiary, SoftSol Resources Inc., provides information and technology services in India and the United States. The company’s products include IntelliCourt, a case management system that offer clerks, judges, supervisors, and court CIOs the tools they need to eliminate bottlenecks, ensure compliance, and provide justice for the jurisdictions; Corporate Investigations, a case management system that coordinates HR investigations and incidents of corporate loss; BUGFAST, which allows business analysts to create, execute, and maintain automated test scripts; and ModernizeNow PowerBuilder Migration. Its services include enterprise modernization, testing, custom application development, cloud computing, salesforce CRM, manage IT, collaborative product development, strategic consulting, and remote infrastructure management. The company also offers e-commerce, network technology, Internet infrastructure, and other technology services; and IT services comprising system integration, IT consulting and staffing, IT project management, and domestic and offshore outsourcing. In addition, it leases properties or spaces. The company was incorporated in 1990 and is based in Hyderabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 12:34
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.