Saksoft Limited (SAKSOFT) AI Stock Analysis

• Market Cap: ₹15.85B
• Dividend Yield: 0.42%
• Average Volume (3M): 27.12K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 1.69
• Revenue Growth: 21.17%
• EPS Growth: 27.66%
• Country: IN
• Employees: 1,946
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 2.27
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ₹130.00 ▼(-34.51% Downside)
• Action: Downgraded Date: 02/25/26
• Date: Action: Downgraded 02/25/26

The score is driven primarily by strong fundamentals (growth, profitability, low leverage, and solid cash generation). This is partially offset by weak technicals, as the stock is in a clear downtrend with negative momentum, despite oversold readings. Valuation is supportive but not compelling given the low dividend yield.

Positive Factors

Revenue Growth & Demand

Saksoft's sustained revenue growth reflects durable demand for digital transformation and engineering services across application development, data, cloud and testing. A consistent upward revenue trend implies repeatable client wins and scalable project delivery that supports mid-term expansion and backlog visibility.

Cash Generation

Operating cash flow reliably covering net income demonstrates efficient earnings conversion and working-capital management. Strong cash generation supports reinvestment into projects, funds organic growth and reduces reliance on external financing, providing durable funding optionality for 2-6 month strategic initiatives.

Balance Sheet Strength

A strong equity ratio and low leverage imply financial flexibility to absorb shocks and pursue growth. Improved return on equity suggests management is using capital effectively. The conservative balance sheet underpins resilience across business cycles and supports medium-term investments or opportunistic M&A.

Negative Factors

Slowing Free Cash Flow Growth

A slowdown in free cash flow growth reduces the pace at which the company can self-fund expansions, dividends or buybacks. If persistent, it could constrain strategic spending or amplify reliance on external capital, weakening the firm's ability to scale or respond to competitive opportunities over the medium term.

Gross Margin Pressure

Declining gross margins signal rising cost of sales or pricing pressure. While net margins improved via cost control, sustained gross margin erosion can compress operating profitability and limit reinvestment capacity unless offset by higher pricing, improved delivery efficiency, or a shift to higher-margin services.

Higher Market Sensitivity

A beta around 1.69 points to above-average sensitivity to market cycles. Given IT services revenues depend on corporate IT spend, elevated systematic volatility increases earnings and cashflow cyclicality risk. That can amplify downside in macro slowdowns despite otherwise solid fundamentals.

Saksoft Limited Business Overview & Revenue Model

Company Description

Saksoft Limited, an information technology company, provides digital transformation solutions in Europe, the United States, the Asia Pacific, and internationally. The company offers services in the areas of software product engineering, support, testing and QA, extended software delivery facility, advisory and consulting, and training. It provides modernization solutions, such as architecture design, application integration, and cloud enablement; intelligent automation solutions, including robotics process automation, data analytics, Internet of Things, machine learning/artificial intelligence, and test automation; and managed analytics solutions comprising data science and reporting/scripting solutions. In addition, the company offers managed infrastructure solutions, such as IT infrastructure operations, cloud support services, IT infrastructure monitoring operations, application and DB operations, and consulting and implementations. It serves logistics and transportation, fintech, healthcare, retail e-commerce, telecommunication, and public sectors. The company was incorporated in 1999 and is headquartered in Chennai, India.

How the Company Makes Money

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Saksoft Limited Financial Statement Overview

Summary

Strong revenue growth and improving net profit margin support profitability, backed by a healthy balance sheet with low leverage. Operating cash flow consistently covers net income, though free cash flow growth has slowed.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.74B	8.83B	7.62B	6.66B	4.80B	3.86B
Gross Profit	3.55B	1.87B	4.10B	3.81B	2.80B	2.10B
EBITDA	1.91B	1.63B	1.44B	1.18B	900.18M	683.81M
Net Income	1.25B	1.09B	961.74M	819.77M	632.62M	454.44M
Balance Sheet
Total Assets	9.98B	9.93B	7.86B	5.68B	4.62B	3.65B
Cash, Cash Equivalents and Short-Term Investments	1.81B	1.97B	2.07B	1.53B	1.05B	1.00B
Total Debt	513.17M	754.52M	263.46M	135.27M	206.79M	350.55M
Total Liabilities	2.95B	3.74B	2.81B	1.64B	1.43B	1.06B
Stockholders Equity	7.03B	6.19B	5.05B	4.05B	3.18B	2.59B
Cash Flow
Free Cash Flow	680.41M	1.01B	1.15B	763.31M	505.42M	627.11M
Operating Cash Flow	694.08M	1.11B	1.17B	841.04M	701.17M	697.78M
Investing Cash Flow	-395.19M	-1.13B	-637.68M	-593.61M	-627.03M	-114.52M
Financing Cash Flow	-308.37M	276.46M	10.54M	-107.37M	-235.63M	-112.51M

Saksoft Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 198.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SAKSOFT, the sentiment is Negative. The current price of 198.5 is above the 20-day moving average (MA) of 133.76, above the 50-day MA of 157.26, and above the 200-day MA of 193.08, indicating a bearish trend. The MACD of -11.59 indicates Positive momentum. The RSI at 27.27 is Positive, neither overbought nor oversold. The STOCH value of 14.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SAKSOFT.

Saksoft Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAKSOFT	68 Neutral	₹15.85B	21.87	―	0.42%	21.17%	27.66%
NUCLEUS	64 Neutral	₹21.33B	29.12	―	1.34%	6.64%	4.63%
IKIO	62 Neutral	₹9.02B	38.21	―	0.55%	11.73%	-64.05%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CENTUM	55 Neutral	₹44.02B	-13.94	―	0.25%	10.29%	―
KERNEX	54 Neutral	₹16.21B	84.78	―	―	155.87%	―
NIITLTD	54 Neutral	₹8.18B	78.58	―	1.07%	12.25%	-28.69%