BSE:538923

Stock Analysis Report

Executive Summary

Sofcom Systems Limited provides software-development consultancy services to the distribution, banking, telecommunication, and manufacturing sectors worldwide.


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

Share Price & News

How has Sofcom Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 538923 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

538923

-4.0%

IN IT

-2.2%

IN Market


1 Year Return

n/a

538923

-19.9%

IN IT

-30.7%

IN Market

Return vs Industry: Insufficient data to determine how 538923 performed against the Indian IT industry.

Return vs Market: Insufficient data to determine how 538923 performed against the Indian Market.


Shareholder returns

538923IndustryMarket
7 Day0%-4.0%-2.2%
30 Day0%-19.5%-25.9%
90 Dayn/a-23.4%-30.5%
1 Yearn/a-17.4%-19.9%-29.3%-30.7%
3 Yearn/a31.0%22.9%-18.8%-23.3%
5 Year-67.1%-67.1%20.5%8.9%-8.7%-13.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Sofcom Systems undervalued compared to its fair value and its price relative to the market?

1.56x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 538923's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 538923's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 538923 is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: 538923 is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 538923's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 538923 is overvalued based on its PB Ratio (1.6x) compared to the IN IT industry average (0.9x).


Next Steps

Future Growth

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

8.1%

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 Sofcom Systems 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 Sofcom Systems performed over the past 5 years?

-49.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 538923 is currently unprofitable.

Growing Profit Margin: 538923 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 538923 is unprofitable, and losses have increased over the past 5 years at a rate of -49.4% per year.

Accelerating Growth: Unable to compare 538923's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 538923 is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (7.2%).


Return on Equity

High ROE: 538923 has a negative Return on Equity (-7.93%), as it is currently unprofitable.


Next Steps

Financial Health

How is Sofcom Systems's financial position?


Financial Position Analysis

Short Term Liabilities: 538923's short term assets (₹9.6M) do not cover its short term liabilities (₹26.7M).

Long Term Liabilities: 538923 has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: 538923's debt to equity ratio (61.5%) is considered high.

Reducing Debt: 538923's debt to equity ratio has increased from 42.7% to 61.5% over the past 5 years.


Balance Sheet

Inventory Level: 538923 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 538923's debt is not covered by short term assets (assets are 0.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 538923 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 538923 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Sofcom Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 538923's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 538923'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 538923's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 538923's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 538923'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?

0.8yrs

Average board tenure


CEO

Kishore Mehta (56yo)

no data

Tenure

Mr. Kishore Mehta serves as Managing Director and Chairman of Sofcom Systems Limited. 


Board Members

NamePositionTenureCompensationOwnership
Kishore Mehta
Chairman & MDno datano data66.38% 38.9m
Asha Mehta
Non Executive Director5.92yrsno data6.22% 3.6m
Nawratan Mehta
Non-Executive Director11.42yrsno datano data
Anil Nahar
Independent Director0.42yrno datano data
Rakesh Pandey
Non-Executive & Independent Director0.75yrno datano data
Ganeshprasad Murarika
Non-Executive & Independent Director0.75yrno datano data

0.8yrs

Average Tenure

54yo

Average Age

Experienced Board: 538923's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


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

Sofcom Systems Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sofcom Systems Limited
  • Ticker: 538923
  • Exchange: BSE
  • Founded: 1995
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹58.627m
  • Shares outstanding: 4.16m
  • Website: https://www.sofcomsystems.com

Location

  • Sofcom Systems Limited
  • A/122, Mittal Tower
  • 12th Floor
  • Mumbai
  • Maharashtra
  • 400021
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
538923BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2015

Biography

Sofcom Systems Limited provides software-development consultancy services to the distribution, banking, telecommunication, and manufacturing sectors worldwide. It also offers software maintenance, software applications re-engineering and downsizing, Internet commerce, mobile application development, cloud deployment, and project-implementation consultancy services. The company provides its services to commercial and government clients. Sofcom Systems Limited was incorporated in 1995 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 13:20
End of Day Share Price2019/11/27 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.