IT - Services
Valuation | |
|---|---|
| Market Cap | 516.03 Cr |
| Price/Earnings (Trailing) | 72.77 |
| Price/Sales (Trailing) | 5.17 |
| EV/EBITDA | 14.6 |
| Price/Free Cashflow | 3.02 |
| MarketCap/EBT | 15.14 |
| Enterprise Value | 517.26 Cr |
Fundamentals | |
|---|---|
| Revenue (TTM) | 99.76 Cr |
| Rev. Growth (Yr) | 33.5% |
| Earnings (TTM) | 24.71 Cr |
| Earnings Growth (Yr) | 42.5% |
Profitability | |
|---|---|
| Operating Margin | 34% |
| EBT Margin | 34% |
| Return on Equity | 49.99% |
| Return on Assets | 40.17% |
| Free Cashflow Yield | 33.16% |
Growth & Returns | |
|---|---|
| Price Change 1W | -17.7% |
| Price Change 1M | -1.8% |
| Price Change 6M | -87.1% |
| Price Change 1Y | 54% |
| 3Y Cumulative Return | -39.6% |
| 5Y Cumulative Return | 24.3% |
Cash Flow & Liquidity | |
|---|---|
| Cash Flow from Investing (TTM) | -20.73 Cr |
| Cash Flow from Operations (TTM) | 18.01 Cr |
| Cash Flow from Financing (TTM) | -2.1 Cr |
| Cash & Equivalents | 2.43 Cr |
| Free Cash Flow (TTM) | 17.81 Cr |
| Free Cash Flow/Share (TTM) | 17.33 |
Balance Sheet | |
|---|---|
| Total Assets | 61.51 Cr |
| Total Liabilities | 12.08 Cr |
| Shareholder Equity | 49.43 Cr |
| Current Assets | 34.57 Cr |
| Current Liabilities | 6.22 Cr |
| Net PPE | 6.97 Cr |
| Inventory | 0.00 |
| Goodwill | 0.00 |
Capital Structure & Leverage | |
|---|---|
| Debt Ratio | 0.06 |
| Debt/Equity | 0.07 |
| Interest Coverage | 86.98 |
| Interest/Cashflow Ops | 45.2 |
Dividend & Shareholder Returns | |
|---|---|
| Dividend/Share (TTM) | 0.05 |
| Dividend Yield | 0.10% |
| Shares Dilution (1Y) | 0.00% |
| Shares Dilution (3Y) | 150% |
Growth: Good revenue growth. With NA% growth over past three years, the company is going strong.
Balance Sheet: Strong Balance Sheet.
Profitability: Very strong Profitability. One year profit margin are 25%.
Past Returns: Underperforming stock! In past three years, the stock has provided -39.6% return compared to 11.9% by NIFTY 50.
Insider Trading: Significant insider selling noticed recently.
Size: It is a small market cap company and can be volatile.
Technicals: SharesGuru indicator is Bearish.
Momentum: Stock has a weak negative price momentum.
Dilution: Company has a tendency to dilute it's stock investors.
Smart Money: Smart money is losing interest in the stock.
Growth: Good revenue growth. With NA% growth over past three years, the company is going strong.
Balance Sheet: Strong Balance Sheet.
Profitability: Very strong Profitability. One year profit margin are 25%.
Past Returns: Underperforming stock! In past three years, the stock has provided -39.6% return compared to 11.9% by NIFTY 50.
Insider Trading: Significant insider selling noticed recently.
Size: It is a small market cap company and can be volatile.
Technicals: SharesGuru indicator is Bearish.
Momentum: Stock has a weak negative price momentum.
Dilution: Company has a tendency to dilute it's stock investors.
Smart Money: Smart money is losing interest in the stock.
Investor Care | |
|---|---|
| Dividend Yield | 0.10% |
| Dividend/Share (TTM) | 0.05 |
| Shares Dilution (1Y) | 0.00% |
| Earnings/Share (TTM) | 0.69 |
Financial Health | |
|---|---|
| Current Ratio | 5.56 |
| Debt/Equity | 0.07 |
Technical Indicators | |
|---|---|
| RSI (14d) | 35.35 |
| RSI (5d) | 23.53 |
| RSI (21d) | 49.41 |
| MACD Signal | Sell |
| Stochastic Oscillator Signal | Hold |
| SharesGuru Signal | Sell |
| RSI Signal | Hold |
| RSI5 Signal | Buy |
| RSI21 Signal | Hold |
| SMA 5 Signal | Sell |
| SMA 10 Signal |
Summary of SIGMA SOLVE's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
The management of Sigma Solve Limited provided a positive outlook, targeting $30 million in revenue over the next four years with a 30% YoY growth trajectory. Key highlights include:
Growth Drivers:
Geographic Expansion:
Financial Performance:
Operational Strategies:
Risk Mitigation: Conservative growth projections, focus on client retention (90%+), and recurring revenue models.
Understand SIGMA SOLVE ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| Prakash Ratilal Parikh | 20.8% |
| Kalpana Prakashbhai Parikh | 20.78% |
| Biren Harshad Zaverchand | 15.81% |
| Pujan Biren Zaverchand | 15.81% |
| Binaben Janakbhai Shah | 4.12% |
| ANGAT GODIWALA | 2.41% |
| Divyaprabhaben Pravinbhai Shah | 1.33% |
Detailed comparison of SIGMA SOLVE against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Sigma Solve Limited, together with its subsidiary, Sigma Solve INC, engages in the enterprise software development business worldwide. The company offers IT and turnkey consultancy services to customers in its business domain. It also provides Web and E-commerce development, real time application development, business intelligence analytics, CRM development, digital marketing, UI and UX design, automation testing, quality assurance, software development, enterprise and ERP solutions, and cloud solutions services. In addition, the company offers various plugins, including MAGNETO, nopCommerce, PRESTASHOP, and WORDPRESS. Sigma Solve Limited was incorporated in 2010 and is based in Ahmedabad, India.
This is an informational page just to provide a quick 'first look' at the stock. You must do your own deeper research. Know your risk appetite. Consult a SEBI-registered financial advisor before making any investment decisions.
| Sell |
| SMA 20 Signal | Sell |
| SMA 50 Signal | Sell |
| SMA 100 Signal | Sell |
Question 1:
What kind of demand can we expect going forward? When would we be able to achieve our guidance of $30 million of top line?
Answer:
The company aims to achieve $30 million in revenue over 4 years via 30% YoY growth. Current demand is stable, with Q3 growth at 12% YoY. The US sales team's stabilization and strategic engagements are expected to drive higher growth (20%+) in subsequent quarters, assuming favorable market conditions.
Question 2:
What strategy has the company employed to maintain or improve profit margins amidst market fluctuations?
Answer:
Margins are maintained by focusing on niche domains (e.g., logistics, construction tech) to avoid commoditization. Reusing domain-specific software solutions reduces development costs and enables easier sales. Recurring revenue (65% of total) from perpetual licenses and client retention (>90%) further supports margins.
Question 3:
How will the company competitively position itself using AI amid rising adoption in the IT sector?
Answer:
Sigma positions itself as a solutions provider, not a body shop, integrating AI into domain-specific offerings (e.g., logistics route optimization). This approach adds value to clients' operational efficiency without direct competition in AI-driven commoditized services.
Question 4:
How does Sigma differentiate itself from tech giants in the competitive landscape?
Answer:
Leveraging a "US-first" hybrid model (US market access with Indian delivery) and deep domain expertise allows Sigma to compete with larger firms. Focus on mid-sized deals ($250K average) and tailored solutions for industries like logistics and construction tech drives differentiation.
Question 5:
Can you elaborate on the revenue-sharing model based on IP?
Answer:
IP-driven products contribute 5-7% of revenue, primarily through perpetual licenses rather than SaaS. Domain-specific solutions (e.g., logistics TMS) are sold as recurring licenses, balancing client cost concerns with long-term revenue stability.
Question 6:
What is the revenue contribution from key sectors like logistics, and what are other focus areas?
Answer:
Logistics contributes 7-8% of revenue. Other verticals include construction tech (project lifecycle software) and process automation. A new Microsoft Dynamics practice is being developed to address evolving ERP needs of growing clients.
Question 7:
How is the company planning workforce expansion over the next year?
Answer:
Employee strength targets 350"“400 (currently 240"“250), with increased hiring in the US for solution architects and sales roles. Investments in European markets (Netherlands, Scandinavia) are planned, leveraging logistics expertise.
Question 8:
What is the current client concentration and new client addition trend?
Answer:
Top client contributes ~10%, with the top 5 clients accounting for ~40% of revenue. Q3 saw 10"“14 new clients. Recent QA automation initiatives contribute minimally (2-3% revenue), while bookkeeping collaborations are underdeveloped.
Question 9:
What is the order book visibility and margin outlook?
Answer:
FY24 order pipeline is $3.6M, aligning with 30% growth targets. Margins (~39% EBITDA, ~28% PAT) are expected to hold via recurring revenue, domain focus, and operational efficiency. Client retention (90%+) minimizes churn risks.
Question 10:
Are inorganic growth or acquisitions being considered?
Answer:
Acquisition targets include Dynamics-focused firms or India-based execution partners to complement US market access. Valuation discipline is prioritized amid inflated market expectations. Dividends will continue based on profitability.
| Darshanaben Rajulbhai Chokshi | 0% |
| Deepak Navinchandra Choksi | 0% |
| Pintu Nitin Patel | 0% |
| Shivang Rajulbhai Chokshi | 0% |
Distribution across major stakeholders
Distribution across major institutional holders
| 5.3% |
| 9.21 |
| 8.8 |
| 6.83 |
| 5.84 |
| 5.45 |
| 5.14 |
| Total profit before tax | 5.3% | 9.21 | 8.8 | 6.83 | 5.84 | 5.45 | 5.14 |
| Current tax | 48.6% | 4.18 | 3.14 | 2.29 | 0.93 | 1.79 | 0.71 |
| Deferred tax | -34.7% | -1.68 | -0.99 | -0.65 | 0.69 | -0.45 | 0.5 |
| Total tax | 31.3% | 2.51 | 2.15 | 1.64 | 1.61 | 1.34 | 1.21 |
| Total profit (loss) for period | 0.9% | 6.7 | 6.65 | 5.1 | 4.7 | 4.11 | 3.93 |
| Other comp. income net of taxes | -173% | 0.73 | 1.37 | -0.08 | 0.47 | 0.07 | 0.02 |
| Total Comprehensive Income | -8.4% | 7.43 | 8.02 | 5.01 | 5.17 | 4.18 | 3.95 |
| Earnings Per Share, Basic | 62.6% | 0.65 | 0.065 | 0.504 | 0.822 | 0.8 | 0.764 |
| Earnings Per Share, Diluted | 62.6% | 0.65 | 0.065 | 0.504 | 0.822 | 0.8 | 0.764 |
| 37.4% |
| 7.39 |
| 5.65 |
| Total profit before tax | 37.4% | 7.39 | 5.65 |
| Current tax | 210.7% | 1.87 | 1.28 |
| Deferred tax | -26.2% | -0.06 | 0.16 |
| Total tax | 86.4% | 1.82 | 1.44 |
| Total profit (loss) for period | 42.4% | 5.57 | 4.21 |
| Other comp. income net of taxes | - | 0.02 | 0 |
| Total Comprehensive Income | 43% | 5.59 | 4.21 |
| Earnings Per Share, Basic | 22.4% | 0.542 | 0.41 |
| Earnings Per Share, Diluted | 22.4% | 0.542 | 0.41 |
| - |
| 2.98 |
| - |
| 0 |
| - |
| 0 |
| Non-current investments | -155.6% | 0 | 2.8 | 3.15 | 0 | 2.79 |
| Loans, non-current | -126.7% | 0 | 4.75 | 0 | 0 | 0 |
| Total non-current financial assets | -34.6% | 6.89 | 10 | 6.1 | 2.97 | 5.73 |
| Total non-current assets | 18.8% | 20 | 17 | 16 | 16 | 14 |
| Total assets | 10.3% | 33 | 30 | 27 | 25 | 23 |
| Borrowings, non-current | -56.8% | 1.38 | 1.88 | 2.37 | 3.86 | 4.35 |
| Total non-current financial liabilities | -40.9% | 1.52 | 1.88 | 2.37 | 5.09 | 4.35 |
| Provisions, non-current | 74.1% | 0.93 | 0.73 | 0.64 | 0 | 0.47 |
| Total non-current liabilities | 1.7% | 2.79 | 2.76 | 3.33 | 5.88 | 4.91 |
| Borrowings, current | -7.9% | 1.7 | 1.76 | 1.68 | 0 | 1.17 |
| Total current financial liabilities | 22.5% | 4.65 | 3.98 | 3.61 | 0.12 | 3.6 |
| Provisions, current | 3.6% | 0.19 | 0.16 | 0.14 | 0.53 | 0.11 |
| Current tax liabilities | -174.1% | 0.8 | 1.27 | 0.1 | 0.21 | 0.79 |
| Total current liabilities | 5.2% | 5.83 | 5.59 | 4.47 | 2.43 | 4.64 |
| Total liabilities | 3.5% | 8.62 | 8.36 | 7.81 | 8.32 | 9.55 |
| Equity share capital | 0% | 10 | 10 | 10 | 10 | 10 |
| Total equity | 9.5% | 24 | 22 | 19 | 16 | 14 |
| Total equity and liabilities | 10.3% | 33 | 30 | 27 | 25 | 23 |
| 24.2% |
| Repayments of borrowings | 117% |
| Dividends paid | 0% |
| Interest paid | - |
| Net Cashflows from Financing Activities | -261.6% |
| Effect of exchange rate on cash eq. | -122.2% |
| Net change in cash and cash eq. | 3.1% |