Softrak Venture Investment Limited

Technology — Information Technology Services · BSE

₹1.57+₹0.03 (+1.95%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The company is currently losing money, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Softrak Venture Investment Limited engages in the information technology business in India. The company provides customized software solutions build upon robust technologies, including Microsoft Asp.net, Java, Java Script, PHP, Open Source, Android & IOS OS, My SQL, etc.

IndustryInformation Technology Services

SectorTechnology

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹83 left at the operating level before interest, tax and depreciation.

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?Little sign of one

Returns on capital of 0.6% 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.

Peer median ROE32.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +70% while net margin moved +436% 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+70%

Margin effect+436%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ No meaningful P/E — the company is lossmaking

Quality vs. Valuation

Company Quality

61/ 100

Average

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

Valuation

19/ 100

Expensive

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

76.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 44.7 points, from 127.7% to 82.9%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

Margins are being competed away
EBITDA margin has fallen from 127.7% to 82.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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.

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

1Revenue growth stays above 14% a year✓ 19.2% CAGR
Latest reported year was -60.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 81%✓ 82.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 0.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ 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

1 good · 4 neutral · 6 weak

Market Cap

₹71 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹-0.94

Loss-making

Negative earnings per share — the business is losing money

ROE

0.3%

Weak

Weak capital efficiency

ROCE

0.6%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-60.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-55.9%

Falling

Profits are shrinking

Dividend Yield

0.64%

Modest

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

Free Cash Flow

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

8.43

Comfortable

Healthy short-term liquidity

52W Range Position

24%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1.6 / 1.6

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

38.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹0 Cr	₹3 Cr	₹1 Cr	+19.2%
EBITDA	₹1 Cr	-₹0 Cr	₹1 Cr	₹1 Cr	+3.3%
EBITDA Margin	127.7%	-231.6%	21.9%	82.9%	—
PAT (Net Profit)	₹0 Cr	₹2 Cr	₹0 Cr	₹0 Cr	+108.6%
EPS	₹0	₹0.05	₹0.08	—	—
ROE	0.0%	4.8%	0.8%	0.3%	—
ROCE	0.9%	-0.3%	1.3%	0.6%	—
Free Cash Flow	-₹0 Cr	₹0 Cr	₹0 Cr	₹3 Cr	—

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

🟢 EBITDA has grown at 3.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 127.7% to 82.9% over 3 years (-44.7 pts).

🟢 PAT (Net Profit) has grown at 108.6% a year over 3 years.

🟡 ROE has held roughly flat at 0.3% over 3 years.

🟡 ROCE has held roughly flat at 0.6% over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹3 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹50 Cr

Total Liabilities

₹4 Cr

Total Debt

—

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

88.0%

Corporate Actions

Dividend Rate

₹0.01

Ex-Dividend Date

18 Sept 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

1 positive5 general

Softrak shareholders approve land asset disposal with 99.99% votes

scanx.trade, 12 Oct

Softrak Venture Investment Ltd

Equitypandit, 09 Mar

Softrak Venture Investment Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 30 Aug

SOFTRAK VENTURE INVESTMENT LTD Share Price

Upstox, 30 Mar

1753% Rise In 3-Months: 5 Penny Stocks That Hit Upper Circuit Limit On Feb 17

Goodreturns, 17 Feb

Dividend Stocks: IGL, Dixon Tech, Mazagon Dock, among others to trade ex-dividend next week — Check details here

Livemint, 14 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Revenue growth is negative (-60.2%) 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.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality

WeakProfitability · Valuation · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 4 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑