Saksoft Ltd: An IT Stock Under ₹200 with ₹1,000 Cr Revenue Guidance for FY25 – A Must-Watch Investment
Saksoft Ltd : The Indian IT sector continues to be a major contributor to the country’s economy, making up 7% of the GDP in FY24. With the industry projected to reach a massive USD 350 billion by 2026, its share in the GDP is expected to rise to 10%. Furthermore, India’s AI market is expanding at an impressive CAGR of 20.2%, projected to reach USD 7.8 billion by 2025.
One stock that has been catching investor attention in this booming IT sector is Saksoft Ltd. Trading at an attractive price of ₹164 per share, this small-cap IT firm has given phenomenal returns of 1,016% over five years and aims to achieve a revenue of ₹1,000 Cr in FY25. Let’s dive into why this stock should be on your radar.
Saksoft Ltd – Stock Overview
Saksoft Ltd is a digital transformation solutions provider with expertise in AI-driven software engineering. The company offers solutions across key verticals like fintech, healthcare, logistics, retail, and telecommunications. It specializes in augmented analytics using AI/ML, natural language processing, and cloud-enabled enterprise applications.
Stock Performance & Price Action
The stock has shown a stellar performance over the past few years. On Friday, its shares were trading at ₹164, reflecting a 1.2% decline from the previous close of ₹165. However, long-term investors have witnessed exceptional returns, with the stock surging 134% in the last three years and a massive 1,016% in the past five years.
| Stock Details | Values |
|---|---|
| Market Cap | ₹2,171 Cr |
| Current Price | ₹164 |
| 52-Week High / Low | ₹320 / ₹156 |
| Stock P/E | 21.3 |
| Book Value | ₹42.7 |
| Dividend Yield | 0.40% |
| Industry P/E | 30.7 |
Future Growth Plans & Management Outlook
Saksoft Ltd has ambitious plans for the future, aiming to achieve USD 500 million in revenues by FY30 with a 13% revenue CAGR. Profitability is also expected to grow at a 20% CAGR over the next decade.
For FY25, the management has set a revenue guidance of ₹1,000 Cr, with expectations to end the year around ₹870 Cr. The company is strategically shifting towards AI-led software engineering, positioning itself for long-term success.
The management is particularly optimistic about Q4FY25 and FY26, expecting continued growth backed by a strong order book.
Strategic Partnerships & Acquisitions
Saksoft has been actively forming strategic alliances and acquiring companies to strengthen its capabilities:
- February 2025: Partnered with Cleo, a global leader in ecosystem integration software, to enhance its logistics customers’ automation capabilities.
- December 2024: Acquired Zetechno Products and Services Pvt. Ltd., boosting its expertise in ServiceNow platform-related services and IT Service Management.
Financial Performance
Saksoft reported strong financials in Q3FY25:
- Revenue Growth: ₹227 Cr in Q3FY25, up 17.63% YoY from ₹193 Cr in Q3FY24.
- Net Profit Growth: ₹27 Cr in Q3FY25, up 19.88% YoY from ₹23 Cr in Q3FY24.
| Financial Metrics | Value |
|---|---|
| Revenue Growth YoY | 17.63% |
| Net Profit Growth YoY | 19.88% |
| Return on Capital Employed (ROCE) | 27.7% |
| Return on Equity (ROE) | 21.1% |
| Debt-to-Equity Ratio | 0.09 |
| EPS (Earnings Per Share) | ₹7.69 |
| Intrinsic Value | ₹153 |
| Free Cash Flow (3 Years) | ₹242 Cr |
| Free Cash Flow (5 Years) | ₹348 Cr |
| Debt | ₹53.2 Cr |
Revenue Breakdown by Segments
Saksoft derives revenue from multiple business segments:
- Hitech, Media & Utilities – 42%
- Fintech – 31%
- Transport & Logistics – 16%
- Retail – 11%
Why Saksoft is an Attractive Investment?
- High Growth Potential – Targeting ₹1,000 Cr revenue in FY25 and USD 500 million by FY30.
- AI-Focused Strategy – Transitioning into an AI-led software engineering company.
- Strong Financials – Consistent revenue and profit growth.
- Impressive Stock Performance – 1,016% return in five years.
- Strategic Partnerships – Cleo and Zetechno acquisitions to expand capabilities.
- Low Debt & High ROE/ROCE – Strong financial health with minimal debt.
Final Thoughts
Saksoft Ltd is a high-potential IT stock under ₹200 that investors should keep an eye on. With a strong revenue growth outlook, AI-driven transformation, and strategic acquisitions, the company is well-positioned for long-term success.
If you’re looking for a small-cap IT stock with strong fundamentals and growth prospects, Saksoft Ltd could be a hidden gem in the Indian IT sector.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.