Compucom Software Limited (COMPUSOFT) AI Stock Analysis

• Market Cap: ₹1.15B
• Dividend Yield: 1.2%
• Average Volume (3M): 5.03K
• Price to Earnings (P/E): 43.5
• Beta (1Y): 1.69
• Revenue Growth: -25.74%
• EPS Growth: 115.90%
• Country: IN
• Employees: 519
• Sector: Technology
• Sector Strength: 88
• Industry: Education & Training Services
• EPS (TTM): -0.03
• Shares Outstanding: 79,125,180
• 10 Day Avg. Volume: 2,905
• 30 Day Avg. Volume: 5,025
• PEG Ratio: -1.38
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 4.44
• P/FCF Ratio: 4.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ₹15.00 ▼(-7.58% Downside)

Compucom Software Limited's overall stock score is primarily impacted by its mixed financial performance and bearish technical indicators. The high P/E ratio suggests overvaluation, while the oversold technical indicators indicate potential for further price declines. Stabilizing financial performance and improving market sentiment are key to enhancing the stock's outlook.

Positive Factors

Strong Balance Sheet

Low leverage and a high equity ratio provide durable financial flexibility, lowering solvency risk and preserving borrowing capacity. This supports multi-month strategic moves—capital investments, R&D, or opportunistic M&A—without immediate pressure from debt servicing.

Improving Cash Generation

A rebound in operating cash flow and free cash flow indicates better cash conversion and capital spend control. Sustained improvement strengthens the company’s ability to fund operations, reduce reliance on external financing, and support consistent reinvestment or shareholder returns over coming months.

Positive Core Operating Cash

A positive EBITDA margin shows core operations still generate cash before non-cash and financing items. This operational cash buffer enhances resilience, enabling the company to absorb short-term revenue shocks while pursuing margin recovery and long-term profitability improvements.

Negative Factors

Revenue Volatility

Persistent top-line volatility and a recent sharp revenue decline undermine predictability of cash flows and growth planning. Over a multi-month horizon this weakens pricing power, complicates capacity planning, and can stall sustainable margin recovery and investment execution.

Margin Compression / Negative EBIT

Shrinking gross and net margins combined with negative EBIT suggest operational inefficiencies or fixed-cost stress. This reduces internally generated funds for R&D and expansion, increases dependency on external capital, and raises the risk that profitability issues become structural.

Free Cash Flow Instability

Volatile free cash flow history makes funding of capex, dividends, and strategic programs less predictable. Even with recent improvement, ongoing FCF swings elevate refinancing and operational risk and constrain consistent long-term capital allocation choices.

Compucom Software Limited Business Overview & Revenue Model

Company Description

Compucom Software Limited operates as a software and education company in India and the United States. It operates through Software Development, Wind Power Generation, and Learning Solutions segments. The company offers IT services, such as enterprise application development/management, customer relationship management, business process management, supply chain management, customized learning solutions, and mobile solutions, as well as grievance redressal systems. It also provides ICT-enabled education services for computer education, computer literacy, and computer-aided learning projects in government schools, as well as undertakes e-governance projects. In addition, the company offers software design and development; electronic media; IT and media training, and learning; testing and maintenance; and customer support services. Further, it operates JAN TV, a satellite TV channel that provides education, news, employment, skill development, agriculture, tourism, healthcare, religious, sports, entertainment, and current affairs based programs. The company also operates wind power generation plants with a total power generation capacity of 3.2 MW. Compucom Software Limited was incorporated in 1995 and is based in Jaipur, India.

How the Company Makes Money

COMPUSOFT generates revenue through multiple streams, including software licensing fees, subscription-based models for its cloud services, and consulting fees for IT services. The company also earns income from ongoing maintenance and support contracts for its software products. Strategic partnerships with other technology firms and integration with third-party platforms enhance its service offerings and expand its customer base, contributing to its overall revenue growth.

Compucom Software Limited Financial Statement Overview

Summary

Compucom Software Limited exhibits strong equity levels and manageable debt, but faces challenges with recent income statement performance and cash flow volatility. Stabilizing revenue and enhancing operational efficiency are crucial for improvement.

Income Statement

Compucom Software Limited has shown fluctuating revenue growth with a significant decline in the most recent period. The Gross Profit Margin and Net Profit Margin are modest, with the latest period reflecting a narrowing of margins due to a drop in revenue. Despite previous growth, the current period's negative EBIT indicates operational challenges. EBITDA Margin remains positive, suggesting some stability in operational cash flows.

Balance Sheet

The company exhibits strong equity levels with a low Debt-to-Equity Ratio, reflecting financial stability. The Equity Ratio is high, indicating that the majority of the company's assets are financed by equity. However, the Return on Equity has shown volatility, influenced by inconsistent net income performance.

Cash Flow

The cash flow from operations shows improvement in the latest period, recovering from previous negative cash flows. Free Cash Flow has also rebounded, indicating better management of capital expenditures. However, historical fluctuations in free cash flow growth point to potential instability in cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	350.74M	336.76M	703.16M	546.23M	296.53M	172.70M
Gross Profit	204.08M	147.18M	183.35M	245.04M	12.34M	11.59M
EBITDA	139.01M	122.87M	158.52M	151.57M	215.42M	48.26M
Net Income	35.83M	14.80M	53.06M	50.15M	127.67M	19.50M
Balance Sheet
Total Assets	0.00	1.91B	2.03B	1.72B	1.65B	1.47B
Cash, Cash Equivalents and Short-Term Investments	502.73M	502.73M	538.02M	642.52M	464.37M	585.26M
Total Debt	0.00	296.11M	386.36M	10.44M	60.07M	22.11M
Total Liabilities	-1.41B	501.84M	610.22M	297.51M	249.50M	169.11M
Stockholders Equity	1.41B	1.41B	1.42B	1.40B	1.38B	1.27B
Cash Flow
Free Cash Flow	0.00	316.61M	-376.81M	172.59M	-114.82M	133.92M
Operating Cash Flow	0.00	380.64M	-331.93M	212.46M	132.70M	201.56M
Investing Cash Flow	0.00	-248.93M	-266.11M	54.02M	-278.04M	36.43M
Financing Cash Flow	0.00	-121.90M	325.02M	-82.86M	11.45M	-112.58M

Compucom Software Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:COMPUSOFT, the sentiment is Positive. The current price of 16.23 is above the 20-day moving average (MA) of 14.49, above the 50-day MA of 15.22, and below the 200-day MA of 18.67, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 51.26 is Neutral, neither overbought nor oversold. The STOCH value of 48.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:COMPUSOFT.

Compucom Software Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UMESLTD	62 Neutral	₹120.19M	37.21	―	―	-26.73%	388.56%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
COMPUSOFT	55 Neutral	₹1.15B	43.47	―	1.20%	-25.74%	115.90%
ZEELEARN	55 Neutral	₹2.00B	19.76	―	―	28.91%	-94.80%
EDUCOMP	42 Neutral	₹126.14M	―	―	―	―	―
LCCINFOTEC	41 Neutral	₹674.74M	-55.87	―	―	―	―
MTEDUCARE	41 Neutral	₹107.62M	-0.55	―	―	-3.63%	24.10%

Compucom Software Limited Corporate Events

Compucom Software Faces Rs 17.43 Lakh GST Demand, Deems Impact Immaterial

Compucom Software Limited has disclosed that it received a demand order from the Joint Commissioner of Circle-H, Jaipur II under Section 73 of the GST Act for the 2021-22 financial year, raising a total demand of Rs 17.43 lakh, including interest and penalty, linked to discrepancies between its GST returns and reported turnover. The company plans to challenge the portion of the demand related to alleged lower tax liability in its GSTR-3B/9C filings while intending to deposit the amount pertaining to turnover mismatches, and has stated that the order is not expected to have a material financial impact on its operations, signalling limited balance-sheet risk for stakeholders.