NSEI:SOFTTECH

Stock Analysis Report

Executive Summary

SoftTech Engineers Limited develops software products and solutions for the architecture, engineering, and construction sectors in India.

Rewards

PE ratio (11.4x) is below the Indian market (12.9x)

Risk Analysis

Does not have a meaningful market cap (₹617M)

Unstable dividend track record

Profit margins (9%) are lower than last year (13.4%)

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

5.7%

SOFTTECH

-1.0%

IN Software

0.8%

IN Market


1 Year Return

52.3%

SOFTTECH

-27.7%

IN Software

3.6%

IN Market

Return vs Industry: SOFTTECH exceeded the Indian Software industry which returned -27.7% over the past year.

Return vs Market: SOFTTECH exceeded the Indian Market which returned 3.6% over the past year.


Shareholder returns

SOFTTECHIndustryMarket
7 Day5.7%-1.0%0.8%
30 Day-1.1%-2.1%0.7%
90 Day-4.2%-5.1%7.1%
1 Year53.5%52.3%-24.3%-27.7%5.6%3.6%
3 Yearn/a-13.0%-20.1%34.1%27.0%
5 Yearn/a3.8%-11.8%41.4%28.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

11.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SOFTTECH (₹65.5) is trading above our estimate of fair value (₹5.26)

Significantly Below Fair Value: SOFTTECH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SOFTTECH is good value based on its PE Ratio (11.4x) compared to the Software industry average (11.4x).

PE vs Market: SOFTTECH is good value based on its PE Ratio (11.4x) compared to the Indian market (12.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SOFTTECH is overvalued based on its PB Ratio (1x) compared to the IN Software industry average (1x).


Next Steps

Future Growth

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

16.3%

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 SoftTech Engineers 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 SoftTech Engineers performed over the past 5 years?

17.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOFTTECH has high quality earnings.

Growing Profit Margin: SOFTTECH's current net profit margins (9%) are lower than last year (13.4%).


Past Earnings Growth Analysis

Earnings Trend: SOFTTECH's earnings have grown by 17.7% per year over the past 5 years.

Accelerating Growth: SOFTTECH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SOFTTECH had negative earnings growth (-33.2%) over the past year, making it difficult to compare to the Software industry average (-4.2%).


Return on Equity

High ROE: SOFTTECH's Return on Equity (8.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SoftTech Engineers's financial position?


Financial Position Analysis

Short Term Liabilities: SOFTTECH's short term assets (₹615.1M) exceed its short term liabilities (₹214.4M).

Long Term Liabilities: SOFTTECH's short term assets (₹615.1M) exceed its long term liabilities (₹51.9M).


Debt to Equity History and Analysis

Debt Level: SOFTTECH's debt to equity ratio (23.5%) is considered satisfactory.

Reducing Debt: SOFTTECH's debt to equity ratio has reduced from 67.2% to 23.5% over the past 5 years.

Debt Coverage: SOFTTECH's debt is well covered by operating cash flow (43%).

Interest Coverage: SOFTTECH's interest payments on its debt are well covered by EBIT (11.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: SOFTTECH's debt is covered by short term assets (assets are 4.2x debt).


Next Steps

Dividend

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

0.76%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%0.6%markettop25%2.5%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: SOFTTECH's dividend (0.76%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: SOFTTECH's dividend (0.76%) is low compared to the top 25% of dividend payers in the Indian market (2.54%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether SOFTTECH's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if SOFTTECH's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.7%), SOFTTECH'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

What is the CEO of SoftTech Engineers's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Vijay Gupta (58yo)

4.8yrs

Tenure

₹4,200,000

Compensation

Mr. Vijay Gupta is Founder of SoftTech Engineers Pvt. Ltd. and has been its Chairman, Managing Director and Chief Executive Officer since February 24, 2015. Mr. Gupta started his career as a Research Assoc ...


CEO Compensation Analysis

Compensation vs Market: Vijay's total compensation ($USD59.31K) is about average for companies of similar size in the Indian market ($USD50.84K).

Compensation vs Earnings: Insufficient data to compare Vijay's compensation with company performance.


Management Age and Tenure

1.2yrs

Average Tenure

52.5yo

Average Age

Experienced Management: SOFTTECH's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

1.8yrs

Average Tenure

58yo

Average Age

Experienced Board: SOFTTECH's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 18%.


Management Team

  • Vijay Gupta (58yo)

    Founder

    • Tenure: 4.8yrs
    • Compensation: ₹4.20m
  • Pawan Gupta

    Senior Vice President - eLearning

    • Tenure: 0yrs
    • Compensation: ₹200.71k
  • Priti Gupta (53yo)

    Whole Time Director

    • Tenure: 12.2yrs
    • Compensation: ₹1.08m
  • Deepak Warad (52yo)

    VP of Accounts & Contract Management

    • Tenure: 0yrs
  • Rakesh Singh

    Business Head

    • Tenure: 0yrs
  • Aishwarya Patwardhan

    Company Secretary & Compliance Officer

    • Tenure: 1.8yrs
    • Compensation: ₹281.26k
  • Amit Katariya (41yo)

    Finance Controller

    • Tenure: 0.7yrs
    • Compensation: ₹999.20k
  • Piranvez Irani

    Chief Financial Officer

    • Tenure: 0.7yrs

Board Members

  • Alak Deb

    • Tenure: 0yrs
  • Devendra Tripathi

    • Tenure: 0yrs
  • Vijay Gupta (58yo)

    Founder

    • Tenure: 4.8yrs
    • Compensation: ₹4.20m
  • Rahul Gupta (71yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: ₹100.00k
  • Sundararajan Srinivasan (57yo)

    Additional Director

    • Tenure: 0yrs
  • Ravi Agarwal

    • Tenure: 0yrs
  • Priti Gupta (53yo)

    Whole Time Director

    • Tenure: 12.2yrs
    • Compensation: ₹1.08m
  • Sridhar Pillalamarri (59yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: ₹100.00k

Company Information

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


Key Information

  • Name: SoftTech Engineers Limited
  • Ticker: SOFTTECH
  • Exchange: NSEI
  • Founded: 1996
  • Industry: Application Software
  • Sector: Software
  • Market Cap: ₹617.172m
  • Shares outstanding: 9.42m
  • Website: https://www.softtech-engr.com

Number of Employees


Location

  • SoftTech Engineers Limited
  • The Pentagon
  • Unit No. 5A, 5th Floor
  • Pune
  • Maharashtra
  • 411009
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOFTTECHNSEI (National Stock Exchange of India)YesEquity SharesININRMay 2018

Biography

SoftTech Engineers Limited develops software products and solutions for the architecture, engineering, and construction sectors in India. The company offers AutoDCR, a software for automation of building a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 13:02
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
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.