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Saksoft Ltd

NSE: SAKSOFT BSE: 590051

166.56

(-2.23)%

Wed, 04 Feb 2026, 07:19 am

Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are thoroughly covered by earnings (8.6x coverage).
  • Dividends per share have been stable in the past 10 years.
  • Saksoft's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Saksoft's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Performance (ROE) is expected to be above the current IN IT industry average.
  • An improvement in Saksoft's performance (ROE) is expected over the next 3 years.
  • Saksoft's revenue growth is expected to exceed the India market average.
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Cons

  • Saksoft is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Saksoft's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Saksoft's revenue is expected to grow by 9.1% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Saksoft is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Saksoft is profitable, therefore cash runway is not a concern.
  • Saksoft is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (219.8%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 5.8x debt.
  • Saksoft's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (38.3% vs 12.4% today).
  • Interest payments on debt are well covered by earnings (EBIT is 10.5x coverage).
  • Saksoft's level of debt (12.4%) compared to net worth is satisfactory (less than 40%).
  • Low level of unsold assets.
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Cons

    management

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    Pros

    • The tenure for the Saksoft board of directors is about average.
    • Aditya's compensation has been consistent with company performance over the past year, both up more than 20%.
    • The tenure for the Saksoft management team is about average.
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    Cons

    • Aditya's remuneration is higher than average for companies of similar size in India.

    misc

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    Pros

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      Cons

      • Saksoft is covered by less than 3 analysts.
      • Saksoft has significant price volatility in the past 3 months.

      past

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      Pros

      • Saksoft has delivered over 20% year on year earnings growth in the past 5 years.
      • Saksoft used its assets more efficiently than the IN IT industry average last year based on Return on Assets.
      • Saksoft has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
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      Cons

      • Saksoft's 1-year earnings growth is less than its 5-year average (5.4% vs 20.5%)
      • Saksoft has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • Saksoft's earnings growth has not exceeded the IN IT industry average in the past year (5.4% vs 6%).

      value

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      Pros

      • Saksoft's share price is below the future cash flow value, and at a moderate discount (> 20%).
      • Saksoft's share price is below the future cash flow value, and at a substantial discount (> 40%).
      • Saksoft is good value based on earnings compared to the IN IT industry average.
      • Saksoft is good value based on earnings compared to the India market.
      • BSE:590051 is up 33.2% outperforming the IT industry which returned 8.5% over the past month.
      • BSE:590051 is up 33.2% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Saksoft is overvalued based on assets compared to the IN IT industry average.
      • 590051 underperformed the IT industry which returned -10.1% over the past year.
      • 590051 underperformed the Market in India which returned -14.5% over the past year.

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      Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800