Saksoft Limited
Saksoft Limited Fundamental Analysis
Saksoft Limited (SAKSOFT.NS) shows strong financial fundamentals with a PE ratio of 11.72, profit margin of 12.76%, and ROE of 20.32%. The company generates $10.0B in annual revenue with strong year-over-year growth of 15.94%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 82.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze SAKSOFT.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSAKSOFT.NS demonstrates superior asset utilization.
Valuation Score
ModerateSAKSOFT.NS shows balanced valuation metrics.
Growth Score
ModerateSAKSOFT.NS shows steady but slowing expansion.
Financial Health Score
ExcellentSAKSOFT.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateSAKSOFT.NS maintains healthy but balanced margins.
Key Financial Metrics
Is SAKSOFT.NS Expensive or Cheap?
P/E Ratio
SAKSOFT.NS trades at 11.72 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SAKSOFT.NS's PEG of 7.67 indicates potential overvaluation.
Price to Book
The market values Saksoft Limited at 2.12 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.44 times EBITDA. This is generally considered low.
How Well Does SAKSOFT.NS Make Money?
Net Profit Margin
For every $100 in sales, Saksoft Limited keeps $12.76 as profit after all expenses.
Operating Margin
Core operations generate 16.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.32 in profit for every $100 of shareholder equity.
ROA
Saksoft Limited generates $12.77 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Saksoft Limited generates limited operating cash flow of $694.08M, signaling weaker underlying cash strength.
Free Cash Flow
Saksoft Limited produces free cash flow of $680.42M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $5.32 in free cash annually.
FCF Yield
SAKSOFT.NS converts 4.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.67
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.87
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How SAKSOFT.NS Stacks Against Its Sector Peers
| Metric | SAKSOFT.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.72 | 34.49 | Better (Cheaper) |
| ROE | 20.32% | 1124.00% | Weak |
| Net Margin | 12.76% | -133673.00% (disorted) | Strong |
| Debt/Equity | 0.07 | 7.86 | Strong (Low Leverage) |
| Current Ratio | 1.87 | 5.81 | Neutral |
| ROA | 12.77% | -308769.00% (disorted) | Strong |
SAKSOFT.NS outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Saksoft Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
139.96%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
175.90%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
92.95%
Industry Style: Growth, Innovation, High Beta
High Growth