Compucom Software Limited

Consumer Defensive — Education & Training Services · NSE

₹13.00₹0.00 (0.00%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Compucom Software Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Compucom Software Limited, together with its subsidiary, CSL Infomedia Private Limited, operates as a software and education company in India and the United States. It operates through Software Development, Wind Power Generation, Learning Solutions, Hotel and Other segments.

IndustryEducation & Training Services

SectorConsumer Defensive

Employees996

Annual revenue₹34 Cr

How does it make money?

Turns over ₹34 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹29 left at the operating level before interest, tax and depreciation. Each of its 996 employees supports ₹3.4 lakh of revenue a year, the signature of a people-led business.

EBITDA margin28.7%

Net margin8.4%

Revenue / employee₹3.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

HINDUSTAN UNILEVER LTD.P/E 42.5x · ROE 21.5%

ITC LTDP/E 16.6x · ROE 27.4%

NESTLE INDIA LIMITEDP/E 59.8x · ROE 79.9%

BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%

What is its competitive advantage?Little sign of one

Returns on capital of 4.1% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE4.1%

ROE2.0%

Peer median ROE51.0%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved -37% while net margin moved -8% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-37%

Margin effect-8%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 14.5% a year
✗ Profit has declined at 16.9% a year

Quality vs. Valuation

Company Quality

43/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

65/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

35.1x

3Y Median

46.4x

40 monthly readings · mean 52.3x · range 25.8x–99.6x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 24% below its 3y median of 46.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 19% below the peer median of 43.3x.

vs. its own history

Cheap

46.4x median over 40 months · -24%

vs. sector peers

Fair

43.3x median of 4 peers · -19%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

35.1x

P/B

0.71x

EV/EBITDA

14.5x

PEG

—

Dividend Yield

1.92%

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 26.5% to 28.7% over 3 years.
Valuation below its historical average
At 35.1x the stock trades 24% below its own median of 46.4x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Debt is rising
Total debt is up 4553% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 4553% over 3 years, from ₹1 Cr to ₹49 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹13 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 43% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 26.5% to 28.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 24% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 5.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 27%✓ 28.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹13 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 2.6x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ 4.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 4 neutral · 4 weak

Market Cap

₹103 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

35.1x

Fair

Fairly valued against the generic band

P/B Ratio

0.71x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.37

Profitable

Profitable on a per-share basis

ROE

2.0%

Weak

Weak capital efficiency

ROCE

4.1%

Weak

Low return on total capital employed

Debt/Equity

0.34x

Low

Conservative leverage

Revenue Growth (YoY)

-8.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

0.0%

Modest

Slow profit growth

Dividend Yield

1.92%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹13 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹13

Operating Margin

-6.1%

Weak

Thin margins leave little room for error

Net Margin

8.7%

Average

Average bottom-line conversion

Current Ratio

2.26

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.60

Defensive

Steadier than the market

52W Range Position

14%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

13.1 / 13.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹55 Cr	₹70 Cr	₹34 Cr	₹34 Cr	-14.5%
EBITDA	₹14 Cr	₹16 Cr	₹12 Cr	₹10 Cr	-12.1%
EBITDA Margin	26.5%	22.5%	35.0%	28.7%	—
PAT (Net Profit)	₹5 Cr	₹5 Cr	₹1 Cr	₹3 Cr	-16.9%
EPS	₹0.63	₹0.67	₹0.19	₹0.36	-17.0%
ROE	3.6%	3.7%	1.1%	2.0%	—
ROCE	5.3%	6.3%	3.7%	4.1%	—
Total Debt	₹1 Cr	₹39 Cr	₹30 Cr	₹49 Cr	+259.7%
Free Cash Flow	₹17 Cr	-₹38 Cr	₹30 Cr	-₹13 Cr	—

🔴 Revenue has shrunk at 14.5% a year over 3 years.

🔴 EBITDA has shrunk at 12.1% a year over 3 years.

🟢 EBITDA Margin has risen from 26.5% to 28.7% over 3 years (+2.3 pts).

🔴 PAT (Net Profit) has shrunk at 16.9% a year over 3 years.

🔴 EPS has shrunk at 17.0% a year over 3 years.

🔴 ROE has fallen from 3.6% to 2.0% over 3 years (-1.6 pts).

🔴 ROCE has fallen from 5.3% to 4.1% over 3 years (-1.2 pts).

🔴 Total Debt has grown at 259.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹17 Cr to -₹13 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹203 Cr

Total Liabilities

₹61 Cr

Total Debt

₹49 Cr

Cash & Equivalents

₹9 Cr

Operating Cash Flow

₹10 Cr

Capex

-₹23 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.1%

Corporate Actions

Dividend Rate

₹0.25

Ex-Dividend Date

02 Sept 2026

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

1 mixed5 general

Compucom Software Share Price: Good Buy After Q1 FY27 Results?

Univest, 09 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Compucom Software Ltd. Peer Comparison – Compare with Others

Value Research, 04 Sept

Compucom Software publishes 32nd AGM newspaper notice for September 9

scanx.trade, 01 Aug

Compucom Software vs Nifty 50: Share Price Performance Compared

Univest, 11 Sept

Compucom Software Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 27 Aug

CALSOFT Stock Price and Chart — NSE:CALSOFT

TradingView, 14 Aug

Watch Items

Revenue growth is negative (-8.1%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate11.8/20

🟡Financial HealthAdequate11.8/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak6.2/15

🟢ValuationAttractive10.9/15

🔴RiskHigh4.4/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 27%28.7%
✗Debt / EBITDA falls below 3x5.0x
✗Free cash flow remains positive-₹13 Cr
✗Interest cover stays above 3x2.6x
✗ROCE stays above 8%4.1%