Saksoft Limited

Technology — Information Technology Services · NSE

₹146.97+₹6.95 (+4.96%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Saksoft Limited, an information technology company, provides digital transformation solutions in Europe, the United States, the Asia Pacific, and internationally. It operates through Banking and Financial Services (BSF); Logistics; Emerging Vertical; and Commerce segments.

IndustryInformation Technology Services

SectorTechnology

Employees1,935

Annual revenue₹1,007 Cr

How does it make money?

Turns over ₹1,007 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation. Each of its 1,935 employees supports ₹52.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹52.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 22.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 17.1% against a peer median of 32.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE32.0%

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 +51% while net margin moved +7% 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+51%

Margin effect+7%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.45 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✓ Profits have been consistent from year to year

Quality vs. Valuation

Company Quality

68/ 100

Good

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

Valuation

75/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

14.8x

3Y Median

26.2x

40 monthly readings · mean 27.9x · range 13.4x–50.0x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 44% below its 3y median of 26.2x. 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 is priced broadly in line with the peer median of 16.5x.

vs. its own history

Cheap

26.2x median over 40 months · -44%

vs. sector peers

Fair

16.5x median of 4 peers · -11%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.8x

PEG

0.84

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 17.6% to 20.5% over 3 years.
Cash generation is improving
Free cash flow is up 119% over 3 years.
High return on capital employed
ROCE of 22.4% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 20.3% to 17.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 25.1% to 22.4% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 223% over 3 years, from ₹14 Cr to ₹44 Cr.
🔴High leverageFinancial
Debt/Equity of 5.61x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 22.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 17.6% to 20.5%. 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 44% 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?

Leverage amplifies any setback
Debt/Equity of 5.61x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 20.3% to 17.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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

1Revenue growth stays above 11% a year✓ 14.8% CAGR
Latest reported year was -0.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 18%✓ 20.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹167 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 19%✓ 22.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

5 good · 3 neutral · 3 weak

Market Cap

₹1,889 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.8x

Cheap

Cheap against the generic band

P/B Ratio

2.41x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹9.96

Profitable

Profitable on a per-share basis

ROE

17.1%

Strong

Strong capital efficiency

ROCE

22.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

5.61x

High

High leverage

Revenue Growth (YoY)

-0.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-9.3%

Falling

Profits are shrinking

Dividend Yield

0.75%

Modest

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

Free Cash Flow

₹167 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

4.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

16.9%

Good

Healthy core-business profitability

Net Margin

12.9%

Good

Strong bottom-line conversion

Current Ratio

2.17

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.45

Defensive

Steadier than the market

52W Range Position

34%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

141.2 / 151.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

57.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹666 Cr	₹762 Cr	₹883 Cr	₹1,007 Cr	+14.8%
EBITDA	₹117 Cr	₹143 Cr	₹160 Cr	₹206 Cr	+20.7%
EBITDA Margin	17.6%	18.8%	18.1%	20.5%	—
PAT (Net Profit)	₹82 Cr	₹96 Cr	₹109 Cr	₹133 Cr	+17.6%
EPS	₹6.02	₹7.66	₹8.21	₹10.19	+19.2%
ROE	20.3%	19.0%	17.6%	17.1%	—
ROCE	25.1%	23.0%	20.7%	22.4%	—
Total Debt	₹14 Cr	₹26 Cr	₹75 Cr	₹44 Cr	+47.8%
Free Cash Flow	₹76 Cr	₹115 Cr	₹107 Cr	₹167 Cr	+29.8%

🟢 Revenue has grown at 14.8% a year over 3 years.

🟢 EBITDA has grown at 20.7% a year over 3 years.

🟢 EBITDA Margin has risen from 17.6% to 20.5% over 3 years (+2.9 pts).

🟢 PAT (Net Profit) has grown at 17.6% a year over 3 years.

🟢 EPS has grown at 19.2% a year over 3 years.

🔴 ROE has fallen from 20.3% to 17.1% over 3 years (-3.2 pts).

🔴 ROCE has fallen from 25.1% to 22.4% over 3 years (-2.7 pts).

🔴 Total Debt has grown at 47.8% a year over 3 years.

🟢 Free Cash Flow has grown at 29.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,077 Cr

Total Liabilities

₹298 Cr

Cash & Equivalents

₹119 Cr

Operating Cash Flow

₹171 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.2%

Insider Holding

71.2%

Corporate Actions

Dividend Rate

₹1.1

Ex-Dividend Date

31 Jul 2026

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

2 mixed1 negative3 general

Saksoft (SAKSOFT) Share/Stock Price Live, NSE

TechGraph, 10 Oct

Saksoft shares rally 50% in one week. Here's what technical charts indicate

The Economic Times, 30 JunPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Is Now The Time To Put Saksoft (NSE:SAKSOFT) On Your Watchlist?

Simply Wall Street, 01 Jul

Saksoft Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 11 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Compare SAKSOFT with

Equitymaster, 14 Oct

Saksoft shares fall 8% after Q1 profit, margins drop from last year

CNBC TV18, 07 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

Revenue growth is negative (-0.2%) 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

StrongBusiness Quality · Growth · Valuation

MiddlingFinancial Health · Profitability · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑