BSE:590051

Stock Analysis Report

Executive Summary

Saksoft Limited, an information technology company, provides digital transformation solutions in India, the United Kingdom, the United States, and Singapore.


Snowflake Analysis

Flawless balance sheet, good value and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 590051's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.2%

590051

-3.0%

IN IT

-3.9%

IN Market


1 Year Return

-34.3%

590051

3.5%

IN IT

4.5%

IN Market

Return vs Industry: 590051 underperformed the Indian IT industry which returned 3.5% over the past year.

Return vs Market: 590051 underperformed the Indian Market which returned 4.5% over the past year.


Shareholder returns

590051IndustryMarket
7 Day-7.2%-3.0%-3.9%
30 Day-17.3%-2.6%-3.9%
90 Day-10.3%4.8%-2.1%
1 Year-32.9%-34.3%6.2%3.5%6.4%4.5%
3 Year-27.4%-31.1%63.8%54.3%19.4%12.8%
5 Year34.2%23.4%49.2%35.5%28.2%16.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 590051 (₹187.6) is trading below our estimate of fair value (₹435.41)

Significantly Below Fair Value: 590051 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 590051 is good value based on its PE Ratio (5x) compared to the IT industry average (10.6x).

PE vs Market: 590051 is good value based on its PE Ratio (5x) compared to the Indian market (12.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 590051's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 590051 is overvalued based on its PB Ratio (1.1x) compared to the IN IT industry average (0.9x).


Next Steps

Future Growth

How is Saksoft forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

13.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 590051's forecast earnings growth is above the savings rate (6.5%).

Earnings vs Market: Insufficient data to determine if 590051's earnings are forecast to grow faster than the Indian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 590051's revenue (13.8% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: 590051's revenue (13.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 590051's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Saksoft performed over the past 5 years?

20.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 590051 has a high level of non-cash earnings.

Growing Profit Margin: 590051's current net profit margins (10.8%) are higher than last year (9.7%).


Past Earnings Growth Analysis

Earnings Trend: 590051's earnings have grown significantly by 20.2% per year over the past 5 years.

Accelerating Growth: 590051's earnings growth over the past year (17.9%) is below its 5-year average (20.2% per year).

Earnings vs Industry: 590051 earnings growth over the past year (17.9%) exceeded the IT industry 7.2%.


Return on Equity

High ROE: 590051's Return on Equity (21.6%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Saksoft's financial position?


Financial Position Analysis

Short Term Liabilities: 590051's short term assets (₹1.3B) exceed its short term liabilities (₹548.0M).

Long Term Liabilities: 590051's short term assets (₹1.3B) exceed its long term liabilities (₹424.0M).


Debt to Equity History and Analysis

Debt Level: 590051's debt to equity ratio (20%) is considered satisfactory.

Reducing Debt: 590051's debt to equity ratio has reduced from 25% to 20% over the past 5 years.

Debt Coverage: 590051's debt is well covered by operating cash flow (98.8%).

Interest Coverage: 590051's interest payments on its debt are well covered by EBIT (12.7x coverage).


Balance Sheet

Inventory Level: 590051 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 590051's debt is covered by short term assets (assets are 3.5x debt).


Next Steps

Dividend

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

2.04%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%0.6%markettop25%2.7%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 590051's dividend (2.04%) is higher than the bottom 25% of dividend payers in the Indian market (0.62%).

High Dividend: 590051's dividend (2.04%) is low compared to the top 25% of dividend payers in the Indian market (2.69%).


Stability and Growth of Payments

Stable Dividend: 590051's dividends per share have been stable in the past 10 years.

Growing Dividend: 590051's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.8%), 590051's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Aditya Krishna (59yo)

₹5,400,000

Compensation

Mr. Aditya Krishna has been the Managing Director of Sak Abrasives Limited since 1997. Mr. Krishna serves as the Managing Director of Acuma Solutions Limited. Mr. Krishna Co-founded Saksoft Limited in 199 ...


CEO Compensation Analysis

Compensation vs Market: Aditya's total compensation ($USD75.31K) is above average for companies of similar size in the Indian market ($USD50.27K).

Compensation vs Earnings: Aditya's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Aditya Krishna
Co-Founder0yrs₹5.40m22.31% 436.0m
Niraj Ganeriwala
Chief Financial Officer10.9yrs₹746.00k0.72% 14.0m
S. Muthukrishnan
Company Secretary & Compliance Officer2.8yrs₹115.00kno data
Amit Chatterjee
Executive Vice President of Sales & Marketing0yrsno datano data
Dhiraj Mangla
Executive VP & Global Delivery Head4.6yrsno datano data
Gopakumar Kavunkal
Senior VP & Global Head of Information Management Services2.8yrsno datano data
T. Balaji
Senior Vice President of Business Growth0yrsno datano data
Abhishek Porwal
President & CTO of DreamOrbit3.1yrsno datano data
Sanchit Jain
Chief Executive Officer of DreamOrbit3.1yrsno datano data
Jonathan Eeley
Chief Commercial Officer of Acuma Solutions0yrsno datano data

3.1yrs

Average Tenure

52yo

Average Age

Experienced Management: 590051's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Aditya Krishna
Co-Founder0yrs₹5.40m22.31% 436.0m
V. V. Babu
Independent Non-Executive Director3.8yrs₹250.00kno data
Ajit Thomas
Independent Non-Executive Director10.6yrs₹260.00kno data
Kanika Krishna
Non-Executive Director5.4yrs₹240.00kno data
Ganesh Chella
Independent Non-Executive Director0.08yrsno datano data

4.3yrs

Average Tenure

59yo

Average Age

Experienced Board: 590051's board of directors are considered experienced (4.3 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

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


Key Information

  • Name: Saksoft Limited
  • Ticker: 590051
  • Exchange: BSE
  • Founded: 1999
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹1.954b
  • Shares outstanding: 9.94m
  • Website: https://www.saksoft.com

Number of Employees


Location

  • Saksoft Limited
  • Global Infocity Park
  • 2nd Floor, Block A
  • Chennai
  • Tamil Nadu
  • 600096
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
590051BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2005
SAKSOFTNSEI (National Stock Exchange of India)YesEquity SharesININRMay 2005

Biography

Saksoft Limited, an information technology company, provides digital transformation solutions in India, the United Kingdom, the United States, and Singapore. The company offers application services in the areas of custom application development, Internet of Things, mobile application development, block chain, and robotic process automation. It also provides information management services, including big data solutions comprising data management, multi-dimensional aggregation and allocation, data tagging and standardization, extract-transfer-load process, centralized repositories or data warehouse, real-time reporting with analytical alerts, data mart, key performance indicators optimization, version control and process management, and risk management and insights; business intelligence (BI) solutions, such as data warehousing, data discovery and visualization, master data/data quality management, data integration, data governance, and data warehouse modernization, as well as self-service BI solutions; and data analytics solutions. In addition, the company provides testing, cloud, and mobility services; software solutions including IM Strategy; and consulting, design, custom application development, RaaMS, and BI & DW services, as well as systems integration, implementation, assurance, and placement services. It serves transportation and logistics, fintech, healthcare, retail, e-commerce, telecommunication, and public sectors. The company was founded in 1999 and is headquartered in Chennai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 12:50
End of Day Share Price2020/02/28 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.