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Softtech Engineers Ltd

NSE: SOFTTECH BSE: 543470

218.65

(-7.21%)

Thu, 02 Apr 2026, 03:39 am

Softtech Engineers Analysis

dividend

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Pros

  • Dividends paid are thoroughly covered by earnings (11.5x coverage).
  • SoftTech Engineers's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • SoftTech Engineers has only been paying a dividend for 2 years, and since then there has been no growth.
  • Whilst dividend payments have been stable, SoftTech Engineers has been paying a dividend for less than 10 years.
  • SoftTech Engineers's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

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Pros

  • SoftTech Engineers is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • SoftTech Engineers is profitable, therefore cash runway is not a concern.
  • SoftTech Engineers is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (43%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 4.2x debt.
  • SoftTech Engineers'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 (67.2% vs 23.5% today).
  • Interest payments on debt are well covered by earnings (EBIT is 11.2x coverage).
  • SoftTech Engineers's level of debt (23.5%) 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

    • Vijay's remuneration is about average for companies of similar size in India.
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    Cons

    • The average tenure for the SoftTech Engineers board of directors is less than 3 years, this suggests a new board.
    • The average tenure for the SoftTech Engineers management team is less than 2 years, this suggests a new team.

    misc

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    Pros

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      Cons

      • SoftTech Engineers is not covered by any analysts.
      • SoftTech Engineers's last earnings update was 215 days ago.
      • NSEI:SOFTTECH has not traded for 7 days.

      past

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      Pros

      • SoftTech Engineers's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
      • SoftTech Engineers used its assets more efficiently than the IN Software industry average last year based on Return on Assets.
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      Cons

      • SoftTech Engineers's 1-year earnings growth is negative, it can't be compared to the 5-year average.
      • SoftTech Engineers's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
      • SoftTech Engineers has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • SoftTech Engineers's 1-year earnings growth is negative, it can't be compared to the IN Software industry average.

      value

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      Pros

      • SoftTech Engineers is good value based on assets compared to the IN Software industry average.
      • SoftTech Engineers is good value based on earnings compared to the IN Software industry average.
      • SoftTech Engineers is good value based on earnings compared to the India market.
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      Cons

      • SoftTech Engineers's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • SoftTech Engineers's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • SOFTTECH underperformed the Software industry which returned -27.7% over the past year.
      • SOFTTECH underperformed the Market in India which returned -14.5% over the past year.
      • NSEI:SOFTTECH is flat (0.4%) underperforming the Software industry which returned 11.5% over the past month.
      • NSEI:SOFTTECH is flat (0.4%) underperforming the market in India which returned 8% over the past month.

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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