NSEI:SOFTTECH

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet and fair value.

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.5%

SOFTTECH

-3.8%

IN Software

-3.0%

IN Market


1 Year Return

-36.1%

SOFTTECH

-51.4%

IN Software

-29.2%

IN Market

Return vs Industry: SOFTTECH exceeded the Indian Software industry which returned -51.4% over the past year.

Return vs Market: SOFTTECH underperformed the Indian Market which returned -29.2% over the past year.


Shareholder returns

SOFTTECHIndustryMarket
7 Day-2.5%-3.8%-3.0%
30 Day-33.7%-38.6%-26.9%
90 Day-42.6%-38.1%-28.5%
1 Year-35.6%-36.1%-50.5%-51.4%-27.7%-29.2%
3 Yearn/a-48.7%-53.2%-15.2%-19.9%
5 Yearn/a-39.4%-48.3%-3.1%-8.1%

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?

6.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SOFTTECH (₹35) is trading above our estimate of fair value (₹5.82)

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 (6.1x) compared to the Software industry average (7x).

PE vs Market: SOFTTECH is good value based on its PE Ratio (6.1x) compared to the Indian market (9.2x).


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 good value based on its PB Ratio (0.5x) compared to the IN Software industry average (0.6x).


Next Steps

Future Growth

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

13.8%

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%).


Return on Equity

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


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?

1.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SOFTTECH's dividend (1.43%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: SOFTTECH's dividend (1.43%) is low compared to the top 25% of dividend payers in the Indian market (4.18%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SOFTTECH has been paying a dividend for less than 10 years.

Growing Dividend: SOFTTECH has only been paying a dividend for 2 years, and since then payments have not increased.


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

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

1.5yrs

Average management tenure


CEO

Vijay Gupta (57yo)

5.08s

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 ($USD55.72K) is about average for companies of similar size in the Indian market ($USD48.50K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Vijay Gupta
Founder5.08yrs₹4.20m39.46% 130.1m
Aishwarya Patwardhan
Company Secretary & Compliance Officer2yrs₹281.26kno data
Priti Gupta
Whole Time Director12.42yrs₹1.08m0.35% 1.2m
Amit Katariya
Finance Controller0.92yr₹999.20kno data
Piranvez Irani
Chief Financial Officer0.92yrno datano data
Deepak Warad
VP of Accounts & Contract Managementno datano datano data
Pawan Gupta
Senior Vice President - eLearningno data₹200.71kno data
Rakesh Singh
Business Headno datano datano data

1.5yrs

Average Tenure

52.5yo

Average Age

Experienced Management: SOFTTECH's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Vijay Gupta
Founder5.08yrs₹4.20m39.46% 130.1m
Priti Gupta
Whole Time Director12.42yrs₹1.08m0.35% 1.2m
Alak Deb
no datano datano data
Devendra Tripathi
no datano data1.39% 4.6m
Rahul Gupta
Independent Director2yrs₹100.00kno data
Sundararajan Srinivasan
Additional Non Executive Directorno datano datano data
Ravi Agarwal
no datano datano data
Sridhar Pillalamarri
Independent Director2yrs₹100.00kno data
Dominik Keller
Nominee Director0.17yrno datano data

2.0yrs

Average Tenure

57yo

Average Age

Experienced Board: SOFTTECH's board of directors are not considered experienced ( 2 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 been diluted in the past year, with total shares outstanding growing by 18%.


Top Shareholders

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: ₹329.787m
  • 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 approvals that is used by the government authorities in scrutinizing and automating the building permits; and Public Works Information Management System, a Web-based commercial-off-the-shelf application for managing the functional processes, including budgets, estimations, approval, e-tendering, contract management, monitoring, and billing. It also provides OPTICON, which is an enterprise resource planning software primarily for construction enterprises; BIMDCR, a 3D building model based online single window system that facilitates automatic scrutiny of building proposals; and RuleBuddy, an e-commerce portal to provide investment risk analysis and project feasibility services. The company serves property developers, investors, real estate companies, contractors, architects, and consultants. SoftTech Engineers Limited was founded in 1996 and is headquartered in Pune, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 13:31
End of Day Share Price2020/03/26 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.