Sigma Solve Ltd (SIGMA) AI Stock Analysis

• Market Cap: ₹3.92B
• Dividend Yield: 0.09%
• Average Volume (3M): 19.07K
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.89
• Revenue Growth: 36.40%
• EPS Growth: 27.52%
• Country: IN
• Employees: 224
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.65
• Shares Outstanding: 102,774,980
• 10 Day Avg. Volume: 16,573
• 30 Day Avg. Volume: 19,069
• PEG Ratio: 0.74
• Price to Book (P/B): 5.20
• Price to Sales (P/S): 3.37
• P/FCF Ratio: 14.43
• 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: 76 Outperform
• Price Target: ₹45.00 ▼(-24.11% Downside)
• Action: Reiterated Date: 10/08/25
• Date: Action: Reiterated 10/08/25

Sigma Solve Ltd's overall stock score is driven primarily by its strong financial performance, characterized by robust revenue and profit growth, and a stable balance sheet. Technical analysis supports a positive outlook with bullish trends, although valuation concerns due to a high P/E ratio and low dividend yield slightly temper the overall score.

Positive Factors

High revenue growth

Revenue growth of roughly 37% year-over-year evidences sustained client demand and successful service delivery. Over 2–6 months this supports durable top-line momentum, creates scale benefits for margins, and provides resources for strategic reinvestment and market share expansion.

Strong margins and profitability

Healthy gross (~47%) and net (~25%) margins indicate effective cost control and pricing power in the firm's IT services model. Durable margins support cash generation, allow reinvestment in growth, and make the business more resilient to demand fluctuations over the medium term.

Conservative balance sheet

Very low leverage and an 80% equity ratio provide financial flexibility and reduce refinancing risk. Combined with an improved ROE (~38.6%), this durable capital structure supports opportunistic M&A, sustained dividends or buybacks, and cushions the company during macroeconomic stress.

Negative Factors

Negative investing cash flow

Significant negative investing cash flow suggests elevated capex or acquisitions; if these investments fail to generate expected returns, free cash flow and liquidity could be pressured. Over months this raises execution and capital-allocation risk for long-term value creation.

Limited forward guidance / disclosure

Absence of earnings-call details and formal guidance reduces forward visibility into sales pacing and margin trajectory. For investors and creditors, this persistent lack of forward disclosure makes assessing future performance and planning around cash needs more difficult over the medium term.

Low trading liquidity

Relatively low average trading volume can impede execution of large institutional orders, widen spreads, and amplify price moves on material news. Over a multi-month horizon this can limit participation from larger investors and increase realised transaction costs.

Sigma Solve Ltd Business Overview & Revenue Model

Company Description

Sigma Solve Limited engages in the enterprise software development business in India. The company offers information and information enabled services; and turnkey consultancy services to customers in their business domain. It also provides services related to Web and E-commerce development, real time application development, business intelligence analytics, CRM development, digital marketing, UI and UX design, and automation testing and quality assurance. Sigma Solve Limited was incorporated in 2010 and is based in Ahmedabad, India.

Sigma Solve Ltd Financial Statement Overview

Summary

Sigma Solve Ltd has demonstrated strong financial performance with robust revenue and profit growth, healthy margins, and a stable balance sheet. The low debt-to-equity ratio and high equity ratio indicate financial stability, while strong cash flow metrics reflect good liquidity and cash management.

Income Statement

Sigma Solve Ltd has demonstrated strong revenue growth, with a significant increase from 2024 to 2025, indicating a positive growth trajectory in the Information Technology Services industry. The gross profit margin remained healthy at approximately 47% in 2025, reflecting effective cost control and operational efficiency. Net profit margin improved to about 25% in 2025, showing enhanced profitability. The EBIT and EBITDA margins are robust, suggesting strong core business performance.

Balance Sheet

The company's balance sheet is solid with a low debt-to-equity ratio of 0.07 in 2025, indicating low leverage and financial stability. The equity ratio is strong at 80%, showing a high proportion of assets financed by equity, which enhances stability. Return on Equity (ROE) improved to approximately 38.6% in 2025, reflecting efficient use of equity to generate profits.

Cash Flow

Sigma Solve Ltd exhibits a strong cash flow position with a substantial increase in free cash flow from 2024 to 2025, indicating effective cash management and growth potential. The operating cash flow to net income ratio is high, suggesting good cash generation relative to profits. However, the investing cash flow was negative in 2025, which could indicate significant investments that may or may not yield future returns.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	893.62M	761.72M	650.54M	558.42M	410.92M	211.53M
Gross Profit	418.30M	358.95M	299.33M	295.88M	258.49M	147.24M
EBITDA	322.18M	271.41M	266.20M	240.76M	163.70M	76.79M
Net Income	228.79M	190.90M	161.37M	117.66M	89.61M	31.18M
Balance Sheet
Total Assets	774.68M	615.06M	400.02M	631.20M	366.01M	216.35M
Cash, Cash Equivalents and Short-Term Investments	76.49M	120.66M	81.46M	63.88M	283.05M	119.72M
Total Debt	34.11M	36.54M	48.37M	38.70M	4.23M	12.19M
Total Liabilities	154.33M	120.79M	97.84M	113.79M	25.10M	22.07M
Stockholders Equity	620.23M	494.25M	302.18M	341.75M	229.35M	137.57M
Cash Flow
Free Cash Flow	167.66M	178.08M	59.61M	127.12M	163.37M	46.50M
Operating Cash Flow	168.65M	180.08M	73.97M	197.42M	164.47M	52.61M
Investing Cash Flow	-138.44M	-207.31M	365.22M	-122.32M	-145.86M	-54.36M
Financing Cash Flow	-13.24M	-21.01M	-411.99M	32.31M	-10.01M	32.79M

Sigma Solve Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 59.30
• 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:SIGMA, the sentiment is Negative. The current price of 59.3 is above the 20-day moving average (MA) of 39.93, above the 50-day MA of 46.51, and above the 200-day MA of 46.44, indicating a bearish trend. The MACD of -1.63 indicates Negative momentum. The RSI at 38.74 is Neutral, neither overbought nor oversold. The STOCH value of 37.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SIGMA.

Sigma Solve Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIGMA	76 Outperform	₹3.92B	22.08	―	0.09%	36.40%	27.52%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GSS	44 Neutral	₹265.04M	50.36	―	―	-14.85%	-128.21%
MELSTAR	42 Neutral	₹61.70M	-2.10	―	―	―	―
TECHIN	42 Neutral	₹217.33M	-116.67	―	―	―	―
SECURKLOUD	41 Neutral	₹710.31M	-10.16	―	―	-48.96%	-422.00%

Sigma Solve Ltd Corporate Events

Sigma Solve Files SEBI Dematerialisation Compliance Certificate for December 2025 Quarter

Sigma Solve Limited has submitted to the stock exchanges a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter and nine months ended 31 December 2025, as provided by its registrar and share transfer agent, MUFG Intime India Private Limited. The registrar confirmed that all securities received for dematerialisation during the period were duly processed, listed on the relevant exchanges, and that corresponding physical certificates were verified, mutilated, cancelled and replaced in the company’s member register within prescribed timelines, underscoring Sigma Solve’s adherence to depository norms and reinforcing governance and operational transparency for shareholders and market participants.