SoftTech Engineers Ltd. (SOFTTECH) AI Stock Analysis

• Market Cap: ₹3.76B
• 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: ₹288.00 ▼(-7.99% 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 gives the company durable financial flexibility to fund R&D, product rollouts, and working capital without relying on external financing. Consistent cash conversion also cushions the business through cyclicality and supports organic growth over months.

Stable balance sheet and improving leverage

A high equity ratio and declining leverage lower financial risk, preserving investment optionality for strategic initiatives or M&A. Financial stability supports multi-quarter execution, helps absorb cost shocks, and makes long-term planning and customer contract performance more reliable.

Consistent revenue growth trend

Sustained top-line growth indicates durable demand for GIS and engineering software among public-sector and enterprise customers. Continued revenue momentum supports scalability, investment in product enhancements, and the potential to regain margin leverage over a multi-quarter horizon.

Negative Factors

Declining profitability margins

Falling gross and net margins reduce the business's ability to convert revenue into sustainable earnings. If cost pressures or pricing weakness persist, margin erosion will limit free cash flow expansion, reduce reinvestment capacity, and constrain long-term return on invested capital.

Lower return on equity / efficiency

Declining ROE signals diminishing capital efficiency, implying the company is generating less profit per unit of shareholder equity. Persistently lower ROE can indicate competitive pressures or ineffective capital allocation, weighing on shareholder returns over multiple quarters.

Negative recent EPS growth

Negative EPS growth despite revenue gains highlights that profit deterioration is outpacing top-line expansion. Continued EPS declines erode the earnings base, limit flexibility for dividends or buybacks, and may force operational adjustments over the next several quarters.

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

SOFTTECH generates revenue primarily through its software development services, IT consulting, and systems integration projects. The company adopts a fee-for-service model, charging clients based on project scope, complexity, and duration. Key revenue streams include custom software solutions, ongoing maintenance and support contracts, and consulting fees for strategic IT assessments. Additionally, SOFTTECH may form partnerships with technology vendors to offer integrated solutions, creating opportunities for bundled services that enhance profitability. Recurring revenue is also generated through subscription-based software products and licenses, contributing to a stable income flow.

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	1.03B	952.50M	787.76M	654.05M	574.57M	415.74M
Gross Profit	502.42M	346.15M	322.67M	406.86M	389.20M	258.35M
EBITDA	265.45M	245.11M	237.93M	209.48M	172.75M	122.00M
Net Income	16.25M	13.14M	35.78M	39.98M	47.87M	27.50M
Balance Sheet
Total Assets	0.00	2.48B	1.95B	1.63B	1.34B	1.20B
Cash, Cash Equivalents and Short-Term Investments	410.56M	410.56M	112.11M	95.47M	63.68M	55.32M
Total Debt	0.00	419.17M	385.04M	480.91M	354.10M	365.90M
Total Liabilities	-1.68B	801.28M	699.43M	599.09M	491.05M	508.41M
Stockholders Equity	1.68B	1.69B	1.26B	1.04B	847.04M	697.55M
Cash Flow
Free Cash Flow	0.00	233.90M	-34.80M	-91.89M	-46.21M	-57.70M
Operating Cash Flow	0.00	242.78M	187.00M	74.08M	115.96M	54.65M
Investing Cash Flow	0.00	-645.84M	-221.11M	-247.16M	-163.87M	-65.12M
Financing Cash Flow	0.00	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 289.55, above the 50-day MA of 300.79, and below the 200-day MA of 347.44, indicating a bearish trend. The MACD of -7.39 indicates Positive momentum. The RSI at 42.26 is Neutral, neither overbought nor oversold. The STOCH value of 6.37 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	₹3.27B	17.18	―	13.69%	4.44%	21.20%
SOFTTECH	62 Neutral	₹3.76B	78.15	―	―	27.33%	-61.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INSPIRISYS	61 Neutral	₹3.34B	4.73	―	―	-1.07%	187.83%
MOLDTECH	54 Neutral	₹3.52B	27.63	―	0.63%	-17.65%	-89.27%
FCSSOFT	52 Neutral	₹2.60B	-39.66	―	―	―	―