SoftTech Engineers Ltd. (SOFTTECH) AI Stock Analysis

• Market Cap: ₹3.53B
• Dividend Yield: N/A
• Average Volume (3M): 176.00
• Price to Earnings (P/E): 78.1
• Beta (1Y): 0.97
• Revenue Growth: 27.33%
• EPS Growth: -61.23%
• Country: IN
• Employees: 352
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.01
• Shares Outstanding: 13,842,138
• 10 Day Avg. Volume: 244
• 30 Day Avg. Volume: 176
• PEG Ratio: -5.16
• Price to Book (P/B): 2.75
• Price to Sales (P/S): 4.87
• P/FCF Ratio: 19.84
• 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: 62 Neutral
• Price Target: ₹270.00 ▼(-13.74% Downside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is driven by solid financial performance—especially strong cash flow and a stable balance sheet—but is meaningfully capped by an extremely high P/E valuation. Technical indicators are mixed, with the stock below key longer-term moving averages and a negative MACD, limiting near-term conviction.

Positive Factors

Strong cash generation

Robust operating and free cash flow indicate high cash conversion and quality earnings. Over 2–6 months this supports durable investment in product development, working capital, debt reduction or M&A, and provides flexibility to withstand cyclical demand swings without relying on external financing.

Stable balance sheet and improving leverage

A high equity ratio and falling debt-to-equity improve financial resilience and reduce default risk. This structural strength provides long-term capacity to finance growth initiatives, tolerate downturns, and preserve strategic optionality for capital allocation decisions without materially raising financing costs.

Consistent revenue growth

Sustained top-line expansion demonstrates product-market fit and growing adoption in GIS and engineering software markets. Durable revenue momentum supports scale benefits, long-term customer relationships, and the ability to invest in R&D and sales capacity, underpinning future recurring revenue streams.

Negative Factors

Declining gross and net margins

Margin compression despite revenue growth signals rising costs, pricing pressure, or lower operating efficiency. If persistent, reduced margins erode free cash flow, limit reinvestment capacity, and weaken the company's ability to convert sales into sustainable profits and shareholder returns over the medium term.

Lower return on equity

A declining ROE implies capital is generating weaker returns, which can constrain long-term shareholder value creation. Structural inefficiencies or suboptimal capital allocation that depress ROE reduce the firm's ability to fund growth from retained earnings and may necessitate higher external financing.

EPS contraction

Negative EPS growth despite strong revenue points to profit and cost pressures that outpace top-line gains. Persisting EPS declines undermine retained earnings accumulation, restrict internal funding for strategic initiatives, and may signal longer-term profitability challenges if not reversed.

SoftTech Engineers Ltd. Business Overview & Revenue Model

Company Description

SoftTech Engineers Limited develops software products and solutions for the architecture, engineering, and construction sectors in India. The company offers AutoDCR, an online building plan scrutiny and approval system for construction permits; and Public Works Information Management System, a web-based commercial-off-the-shelf application for managing the functional processes, including budgets, cost estimations, financial and technical approvals, e-tendering, contract management, project monitoring, and contractor billing. It also provides OPTICON, an enterprise resource planning software primarily for construction enterprises; BIMDCR, a 3D building model based online single window system that facilitates automatic scrutiny of building proposals; RuleBuddy, an e-commerce platform to provide investment risk analysis and project feasibility services; and CIVIT, an AI-powered platform that includes CivitPERMIT, CivitINFRA, CivitPLAN, and CivitBUILD. The company serves property developers, municipal corporations, investors, real estate companies, contractors, architects, and consultants. SoftTech Engineers Limited was incorporated in 1996 and is headquartered in Pune, India.

How the Company Makes Money

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SoftTech Engineers Ltd. Financial Statement Overview

Summary

Overall fundamentals are solid, supported by strong cash generation (cash flow score 85) and a stable balance sheet with improving leverage (balance sheet score 78). The main offset is weakening profitability efficiency, with declines in gross/net margins and lower recent ROE (income statement score 72).

Income Statement

The company has shown consistent revenue growth with a significant increase from 2023 to 2025. However, gross profit margin has decreased in the latest year, indicating rising costs. Net profit margin has also decreased, despite growth in revenue, due to lower net income in 2025.

Balance Sheet

The balance sheet is strong with a high equity ratio, indicating financial stability. The debt-to-equity ratio has decreased over the years, highlighting effective debt management. However, a lower return on equity in recent years suggests less efficient use of equity.

Cash Flow

Cash flow metrics are robust, with substantial free cash flow growth in the latest year. Operating cash flow is strong relative to net income, indicating good cash generation capability. The free cash flow to net income ratio is favorable, suggesting efficient cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.06B	952.50M	787.76M	654.05M	574.57M	415.74M
Gross Profit	538.41M	346.15M	322.67M	406.86M	389.20M	258.35M
EBITDA	283.29M	245.11M	237.93M	209.48M	172.75M	122.00M
Net Income	13.46M	13.14M	35.78M	39.98M	47.87M	27.50M
Balance Sheet
Total Assets	2.44B	2.48B	1.95B	1.63B	1.34B	1.20B
Cash, Cash Equivalents and Short-Term Investments	336.24M	410.56M	112.11M	95.47M	63.68M	55.32M
Total Debt	453.75M	419.17M	385.04M	480.91M	354.10M	365.90M
Total Liabilities	742.52M	801.28M	699.43M	599.09M	491.05M	508.41M
Stockholders Equity	1.70B	1.69B	1.26B	1.04B	847.04M	697.55M
Cash Flow
Free Cash Flow	63.98M	233.90M	-34.80M	-91.89M	-46.21M	-57.70M
Operating Cash Flow	71.74M	242.78M	187.00M	74.08M	115.96M	54.65M
Investing Cash Flow	-84.47M	-645.84M	-221.11M	-247.16M	-163.87M	-65.12M
Financing Cash Flow	11.61M	415.27M	40.11M	175.55M	51.62M	11.75M

SoftTech Engineers Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 313.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SOFTTECH, the sentiment is Negative. The current price of 313 is above the 20-day moving average (MA) of 280.04, above the 50-day MA of 293.58, and below the 200-day MA of 344.43, indicating a bearish trend. The MACD of -10.36 indicates Positive momentum. The RSI at 39.46 is Neutral, neither overbought nor oversold. The STOCH value of 12.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SOFTTECH.

SoftTech Engineers Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CYBERTECH	72 Outperform	₹3.12B	17.18	―	13.69%	4.44%	21.20%
SOFTTECH	62 Neutral	₹3.53B	78.15	―	―	27.33%	-61.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INSPIRISYS	61 Neutral	₹3.21B	4.73	―	―	-1.07%	187.83%
MOLDTECH	54 Neutral	₹3.68B	27.63	―	0.63%	-17.65%	-89.27%
FCSSOFT	52 Neutral	₹2.53B	-39.66	―	―	―	―

SoftTech Engineers Ltd. Corporate Events

SoftTech’s CivitINFRA to Power AAI’s New Airport Project Monitoring Platform

SoftTech Engineers Limited announced that its flagship infrastructure management platform, CivitINFRA, has been chosen to power the Airports Authority of India’s new digital platform for monitoring airport infrastructure projects nationwide. The system supports real-time project tracking with tools such as S-curves, Gantt charts, BIM-based 3D visualization, portfolio dashboards, and mobile-enabled field access, enhancing oversight and risk management across India’s aviation infrastructure.

The deployment marks a significant commercial and strategic milestone for SoftTech, strengthening its position as a leading indigenous technology provider for public infrastructure in line with the government’s Digital India and Make in India initiatives. By enabling data-driven transparency, efficiency, and accountability in airport project governance, the collaboration is expected to deepen SoftTech’s role in mission-critical public sector ecosystems and bolster its standing with key government stakeholders.