Compucom Software Limited (COMPUSOFT) AI Stock Analysis

• Market Cap: ₹1.08B
• Dividend Yield: 1.2%
• Average Volume (3M): 5.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• 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: 61 Neutral
• Price Target: ₹14.50 ▼(-10.66% Downside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is driven primarily by mixed financial performance—balance sheet strength and improving cash flow offset by recent revenue/margin pressure and negative EBIT. Technicals add pressure due to a downtrend and negative MACD, while valuation is constrained by a negative P/E and only a modest dividend yield.

Positive Factors

Strong balance sheet

Low leverage and a high equity ratio provide durable financial resilience. Over 2-6 months this supports the company's ability to fund operations, absorb revenue variability, pursue selective investments or partnerships, and maintain creditor confidence without urgent refinancing risk.

Improving operating cash flow

Rebounding operating and free cash flow signal improving internal cash generation, reducing reliance on external financing. Sustained cash conversion enables reinvestment in products or training services, funds working capital needs, and strengthens liquidity over the medium term.

Positive EBITDA margin

A positive EBITDA margin indicates the core business can cover operating expenses and generate cash before depreciation and interest. This structural profitability buffer supports recovery of net income and can sustain operations while management addresses inefficiencies.

Negative Factors

Recent revenue decline & negative EBIT

A meaningful revenue drop together with negative EBIT signals structural operational strain. Over several months this can erode margins, constrain reinvestment, and force cost cuts or strategic changes to restore profitability, increasing execution risk for management.

Margin compression

Narrowing gross and net margins reduce the company's ability to absorb fixed costs or invest in growth. If persistent, margin pressure will limit operating leverage, weaken cash flow generation, and make sustained earnings improvement harder without pricing or mix changes.

Volatile cash flow and ROE

Inconsistent free cash flow and volatile ROE undermine predictability for investors and management. Over a multi-month horizon, this instability complicates budgeting, dividend policy, and capital allocation, raising the bar for demonstrating sustainable operational improvements.

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

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Compucom Software Limited Financial Statement Overview

Summary

Balanced fundamentals: a weaker income statement (recent revenue decline and negative EBIT) is partially offset by a solid balance sheet (low leverage, strong equity base) and improving but historically volatile operating/free cash flow.

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	349.72M	336.76M	703.16M	546.23M	296.53M	172.70M
Gross Profit	208.29M	147.18M	183.35M	245.04M	12.34M	11.59M
EBITDA	134.87M	122.87M	158.52M	151.57M	215.42M	48.26M
Net Income	32.12M	14.80M	53.06M	50.15M	127.67M	19.50M
Balance Sheet
Total Assets	2.09B	1.91B	2.03B	1.72B	1.65B	1.47B
Cash, Cash Equivalents and Short-Term Investments	468.82M	502.73M	538.02M	642.52M	464.37M	585.26M
Total Debt	462.88M	296.11M	386.36M	10.44M	60.07M	22.11M
Total Liabilities	682.89M	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	-48.25M	316.61M	-376.81M	172.59M	-114.82M	133.92M
Operating Cash Flow	10.88M	380.64M	-331.93M	212.46M	132.70M	201.56M
Investing Cash Flow	-68.14M	-248.93M	-266.11M	54.02M	-278.04M	36.43M
Financing Cash Flow	156.83M	-121.90M	325.02M	-82.86M	11.45M	-112.58M

Compucom Software Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• 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 Negative. The current price of 16.23 is above the 20-day moving average (MA) of 13.87, above the 50-day MA of 14.40, and below the 200-day MA of 18.19, indicating a bearish trend. The MACD of -0.34 indicates Negative momentum. The RSI at 48.09 is Neutral, neither overbought nor oversold. The STOCH value of 64.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	70 Outperform	₹169.06M	40.81	―	―	-26.73%	388.56%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
COMPUSOFT	61 Neutral	₹1.08B	-135.66	―	1.20%	-25.74%	115.90%
ZEELEARN	55 Neutral	₹1.76B	-22.75	―	―	28.91%	-94.80%
EDUCOMP	42 Neutral	₹127.37M	-0.58	―	―	―	―
LCCINFOTEC	41 Neutral	₹651.96M	-4,159.50	―	―	―	―
MTEDUCARE	41 Neutral	₹96.06M	-1.48	―	―	-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.