Saksoft Limited (SAKSOFT) AI Stock Analysis

• Market Cap: ₹26.20B
• Dividend Yield: 0.42%
• Average Volume (3M): 27.12K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 1.41
• Revenue Growth: 21.17%
• EPS Growth: 27.66%
• Country: IN
• Employees: 1,946
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 2.82
• Shares Outstanding: 132,551,250
• 10 Day Avg. Volume: 16,395
• 30 Day Avg. Volume: 27,123
• PEG Ratio: 2.56
• Price to Book (P/B): 3.16
• Price to Sales (P/S): 2.22
• P/FCF Ratio: 19.37
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ₹238.00 ▲(17.44% Upside)

Saksoft Limited demonstrates strong financial performance with consistent revenue growth and solid profitability, which is the most significant factor in its overall score. The technical analysis indicates a bullish trend, although caution is advised due to the RSI nearing overbought levels. The valuation suggests the stock is fairly priced, but the low dividend yield may not appeal to income-focused investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates solid business expansion and increasing market demand for Saksoft's digital transformation services.

Balance Sheet Health

A strong equity base and low debt-to-equity ratio suggest prudent financial management, enhancing long-term stability and risk resilience.

Cash Generation Ability

Efficient cash conversion supports operational and strategic initiatives, ensuring Saksoft can sustain growth and invest in future opportunities.

Negative Factors

Gross Profit Margin Decline

Declining gross profit margins may indicate rising costs, which could pressure profitability if not managed effectively over time.

Free Cash Flow Growth Rate

A declining growth rate in free cash flow could limit the company's ability to fund new projects and return value to shareholders.

Dividend Yield

A low dividend yield may deter income-focused investors, potentially affecting the stock's attractiveness compared to peers offering higher yields.

Saksoft Limited Business Overview & Revenue Model

Company Description

Saksoft Limited (SAKSOFT) is a global technology company specializing in digital transformation and IT services. Founded in 1999, the company operates in various sectors, including banking, financial services, insurance, healthcare, and manufacturing. Saksoft offers a range of core products and services, including software development, cloud computing, data analytics, and artificial intelligence solutions, aimed at helping businesses enhance operational efficiency and drive innovation.

How the Company Makes Money

Saksoft generates revenue primarily through its IT services and consulting offerings. The company operates on a project-based revenue model where it charges clients for custom software development, system integration, and digital transformation services. Key revenue streams include long-term contracts with large enterprises, time-and-material billing for specific projects, and fixed-price contracts for defined deliverables. Additionally, Saksoft has established strategic partnerships with technology giants and software providers, which further enhances its service portfolio and provides access to new markets. These partnerships often lead to joint ventures and collaborative projects that contribute to the company's earnings. The growing demand for digital solutions across various industries also plays a significant role in driving Saksoft's revenue growth.

Saksoft Limited Financial Statement Overview

Summary

Saksoft Limited presents a robust financial profile with consistent revenue growth and strong profitability metrics. The company exhibits sound financial health through a solid balance sheet, characterized by low leverage and a strong equity base. Cash flow generation remains healthy, supporting operational and strategic initiatives.

Income Statement

Saksoft Limited demonstrates strong revenue growth with a consistent upward trend in total revenue over the past years, indicating solid business expansion. The company's gross profit margin has seen some decline, suggesting increased cost of sales. However, the net profit margin has improved notably, pointing to effective cost management and operational efficiency. The EBIT and EBITDA margins have remained robust, reflecting sound profitability and potential for sustained earnings.

Balance Sheet

The balance sheet is characterized by a healthy equity base, with a strong equity ratio that indicates financial stability. The company maintains a low debt-to-equity ratio, suggesting prudent leverage management and low financial risk. Return on equity has shown improvement, demonstrating effective utilization of shareholder funds to generate profits.

Cash Flow

Cash flow analysis reveals stable operating cash flows that consistently cover net income, highlighting efficient conversion of earnings into cash. Free cash flow has shown a declining growth rate, but the company successfully maintains high free cash flow to net income ratios, indicating strong cash generation capabilities. The operating cash flow to net income ratio is also favorable, further emphasizing the firm's ability to generate cash from operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.31B	8.83B	7.62B	6.66B	4.80B	3.86B
Gross Profit	4.12B	1.87B	4.10B	3.81B	2.80B	2.10B
EBITDA	1.74B	1.63B	1.44B	1.18B	900.18M	683.81M
Net Income	1.16B	1.09B	961.74M	819.77M	632.62M	454.44M
Balance Sheet
Total Assets	0.00	9.93B	7.86B	5.68B	4.62B	3.65B
Cash, Cash Equivalents and Short-Term Investments	1.97B	1.97B	2.07B	1.53B	1.05B	1.00B
Total Debt	0.00	754.52M	263.46M	135.27M	206.79M	350.55M
Total Liabilities	-6.19B	3.74B	2.81B	1.64B	1.43B	1.06B
Stockholders Equity	6.19B	6.19B	5.05B	4.05B	3.18B	2.59B
Cash Flow
Free Cash Flow	0.00	1.01B	1.15B	763.31M	505.42M	627.11M
Operating Cash Flow	0.00	1.11B	1.17B	841.04M	701.17M	697.78M
Investing Cash Flow	0.00	-1.13B	-637.68M	-593.61M	-627.03M	-114.52M
Financing Cash Flow	0.00	276.46M	10.54M	-107.37M	-235.63M	-112.51M

Saksoft Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 202.65
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SAKSOFT, the sentiment is Neutral. The current price of 202.65 is below the 20-day moving average (MA) of 204.13, above the 50-day MA of 199.85, and above the 200-day MA of 191.48, indicating a neutral trend. The MACD of 2.34 indicates Positive momentum. The RSI at 49.70 is Neutral, neither overbought nor oversold. The STOCH value of 19.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:SAKSOFT.

Saksoft Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAKSOFT	72 Outperform	₹26.20B	21.76	―	0.42%	21.17%	27.66%
NUCLEUS	72 Outperform	₹27.08B	16.17	―	1.36%	6.64%	4.63%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KERNEX	57 Neutral	₹21.34B	39.45	―	―	155.87%	―
NIITLTD	56 Neutral	₹14.07B	43.32	―	1.04%	12.25%	-28.69%
IKIO	54 Neutral	₹16.08B	72.13	―	0.53%	11.73%	-64.05%
CENTUM	52 Neutral	₹36.23B	517.57	―	0.25%	10.29%	―

Saksoft Limited Corporate Events

Saksoft Limited Schedules Virtual Investor Meeting

Saksoft Limited has announced a virtual investor and analyst meeting scheduled for September 25, 2025, hosted by Valorem Advisors. The company plans to reiterate information from its previous earnings call for the quarter ended June 30, 2025, ensuring no unpublished price sensitive information will be shared during the meeting.

Saksoft Limited Reports Q1 Financials and Approves Amalgamation with Augmento Labs

Saksoft Limited announced the approval of its unaudited financial results for the quarter ending June 30, 2025, with no adverse remarks from auditors. Additionally, the company approved a Scheme of Amalgamation with Augmento Labs Private Limited, subject to necessary approvals, which may enhance its market position and operational capabilities.