1. Saksoft Ltd Stock Performance & Return
The last trading price of the stock is Rs 120 apiece with 52-week high at Rs 137 and 52-week low at Rs 68 apiece, respectively. The stock has given multibagger returns. In last 4-years, the stock has jumped 407%, and 492% in last 3-years. The shares have rallied 33% in last 1-year. The stock has witnessed a surge of 10% in last 1-month.
2. Financials
During the past 5 years, revenue of Saksoft grew at a CAGR of 13.1% while PAT grew at a CAGR of 29.9% in the same period. Saksoft has reported 10.7% QoQ and 42.8% YoY growth in revenue in Q2FY23 to Rs.1,638mn led by its continuous focus on digital service offerings across selected industry verticals.
Saksoft’s EBITDA improved by 12.5% QoQ and 49.2% YoY to Rs.289mn in Q2FY23. Despite the challenging environment, Saksoft’s EBITDA margin improved by 52bps QoQ to 15.7% in Q2FY23 mainly due to 78bps QoQ decline in employee cost to sales. Saksoft has added two new customers in $0.5Mn and one customer in $1Mn revenue segment in Q2FY23.
3. Key Business Highlights
Saksoft is engaged in providing business intelligence and information management solutions predominantly to mid-tier companies across various countries. Saksoft is a leading digital transformation partner for clients, providing services like application development, testing & quality control and solutions based on cloud, mobility and Internet of Things (IoT) and Business Intelligence (BI) solutions.
4. Valuation
According to Bonanza, “With a leading digital transformation partner, recent acquisition of Terafast Networks, capability to aid growth under its ‘inch wide mile deep’ strategy, helping fintechs to achieve desired outcomes, 6 acquisitions to add capabilities and newer service verticals and forayed into delivering healthcare solutions, we value Saksoft at 17.0x FY24E EPS of Rs.8.80 to arrive at target price of Rs.150.00, an upside of 25%”
5. About Saksoft
Saksoft is a leading digital transformation partner that assists customers to automate, modernize and manage IT systems through a combination of domain specific technology and solution accelerators from consulting to support.
Saksoft offers a gamut of services including strategic consulting, information management, application development, digital testing, robotic process automation (RPA), cloud, mobility and internet of things (IoT). Saksoft has recently acquired Terafast Networks, a Chennai-based IT consulting service provider.
Disclaimer
The stock has been picked from the brokerage report of Bonanza. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.