Saksoft (SAKSOFT)

FairStock Score: 32/100 — RISKY

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• ROE of 33.64% and ROCE of 24.04% with negligible debt (D/E 0.07) indicate strong capital efficiency.
• Profit growth of 21.13% outpacing sales growth of 10.56% shows improving margins.
• Piotroski F-score of 7/9 reflects generally sound financial health.
• Promoter holding of 66.68% aligns management interests with minority shareholders.
• P/E of 14.33 and PEG of 0.90 suggest reasonable valuation relative to profit growth.

Concerns

• P/B of 9.00 is very high; book value of ₹15.96 offers little downside protection.
• Sales growth of only 10.56% is moderate, and profit growth may slow if margin expansion fades.
• Dividend yield of 0.56% is low, so returns depend heavily on capital appreciation.
• Stock is 37% below its 52-week high of ₹229.68, indicating volatility or sector headwinds.

AI Analysis

At ₹143.60, Saksoft capitalizes at ₹1,878 Cr. I always ask: what am I getting? The company earns a superb 33.64% ROE and 24.04% ROCE with negligible debt — Debt/Equity of 0.07. That is the sort of economics that draws my attention. But Graham would insist on a margin of safety. At 14.33 times earnings and 9 times book, the market is paying up for that quality. Book value is only ₹15.96, so the asset safety net is thin. Profit grew 21.13% while sales grew 10.56%; the market likes that, but as an investor I need to know whether margins can stay or grow. Latest quarter sales were ₹251 Cr and net profit ₹29 Cr, roughly an 11.5% net margin. The 7/9 Piotroski score suggests financial health is decent. Promoters own 66.68%, so their interests are aligned with mine. I am cautious. The share is 37% below its 52-week high of ₹229.68, and Mr. Market has been moody. A 0.56% dividend yield is not much compensation while waiting. Sales growth under 11% doesn't justify calling this a high-octane grower, but the 21% profit growth and sub-1 PEG ratio of 0.90 make it a candidate for a fast grower at a fair price. Graham would urge me to watch that the earnings growth is real, not engineered by one-offs. With a FairStock Score of 50, the picture is mixed. I would not buy blindly; I want sustained order flows, stable margins, and no dilution. If the company can keep ROE in the 30s and convert profits to cash, this might be a fine compounding machine. But I need a better margin of safety than a 9 times book value.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer