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Saksoft Ltd (SAKSOFT.NS) — Investment Thesis

Status: OWNED (450 shares, ₹58.2K invested, ~4% of portfolio)

Quality Score: 16/25 (Grade B: Moderate Conviction)

Last Updated: 2026-03-12 | Source: Screener.in + Groww MCP

Entry: ₹129.41 avg | CMP: ₹131 | P&L: +1.42%

1. Business Summary

Mid-tier IT services company providing business intelligence, data analytics, and information management to mid-market companies in the USA and UK. Founded 2000, Saksoft has quietly compounded at 20%+ revenue CAGR for 5 years. Under the radar — only 109,000 shareholders, no analyst coverage from major brokerages.

The thesis: Undiscovered consistent compounder. P/E 13.3x on 20% revenue CAGR + 23% profit CAGR = cheap. Almost debt-free. High promoter holding (66.68%).

2. Quality Score

Dimension	Score	Notes
MOAT	2	IT services — limited moat. Competes purely on delivery quality and client relationships. US/UK focused = USD revenue (natural hedge).
Management	4	Promoter 66.68% — high skin in game. Revenue grew every single year for 5+ years. Almost debt-free.
Financials	4	ROE 18.9%, ROCE 24%, OPM 17%, D/E 0.12x. Consistent and improving every quarter.
Growth Runway	3	US/UK mid-market data analytics demand is steady. Not hypergrowth, but reliable 20% CAGR.
Valuation	3	P/E 13.3x for 23% profit CAGR = PEG 0.58. Cheap. Stock -15% in 1 year despite earnings growth = opportunity.
Total	16/25	Grade B

3. Financials

Year	Revenue (₹Cr)	Net Profit (₹Cr)	EPS	OPM%
FY22	480	63	₹4.79	—
FY23	666	82	—	—
FY24	762	96	—	—
FY25	883	109	₹8.21	17%
TTM	998	127	—	17%

5Y Revenue CAGR: 20% | 5Y Profit CAGR: 23%

Quarterly Trend (accelerating)

Quarter	Revenue	Net Profit	EPS	OPM%
Sep 2024	₹215 Cr	₹26 Cr	₹1.97	17%
Dec 2024	₹227 Cr	₹27 Cr	₹2.04	17%
Mar 2025	₹240 Cr	₹30 Cr	₹2.27	15%
Jun 2025	₹249 Cr	₹32 Cr	₹2.44	18%

Every quarter better than the last. This is what a compounder looks like.

Key Ratios

D/E: 0.12x (almost debt-free; rose from ₹21Cr→₹75Cr FY24→FY25 — watch)
ROE: 18.9% | ROCE: 24%
Promoter: 66.68% | FII: 2.23% | Public: 27.39%

4. Why It's Cheap

Small market cap (₹1,740 Cr) — below most institutional radar
No sell-side coverage — no price targets, no upgrade/downgrade noise
Stock -15% in 1 year despite growing earnings every quarter

This is the Munger ideal: a good business, run by honest management, at a fair price, ignored by the market.

5. Exit Triggers

[ ] Revenue growth drops below 12% YoY
[ ] OPM falls below 14%
[ ] D/E rises above 0.5x (debt taking over)
[ ] Promoter below 60%

6. Research Log

2026-03-12 — Initial thesis

Discovered via Groww MCP: 450 shares, ₹58.2K, +1.42%
Classic undiscovered compounder: 20% CAGR, 24% ROCE, 13.3x P/E, high promoter
Quarterly momentum is clean — no blips in 4 quarters
Grade B 16/25. Hold. Consider adding if dips below ₹115.