Why is Covance Softsol Ltd ?
1
Poor Management Efficiency with a low ROE of 7.49%
- The company has been able to generate a Return on Equity (avg) of 7.49% signifying low profitability per unit of shareholders funds
2
Company has a low Debt to Equity ratio (avg) at 0 times
3
Healthy long term growth as Net Sales has grown by an annual rate of 66.30% and Operating profit at 1,081.00%
4
Positive results in Sep 25
- NET SALES(Latest six months) At Rs 66.45 cr has Grown at 53.08%
- PBT LESS OI(Q) At Rs 7.10 cr has Grown at 172.6% (vs previous 4Q average)
- PAT(Latest six months) Higher at Rs 15.46 cr
5
With ROE of 8.2, it has a Very Attractive valuation with a 1.4 Price to Book Value
- Over the past year, while the stock has generated a return of 0.00%, its profits have risen by 870%
6
Majority shareholders : Promoters
How much should you buy?
- Overall Portfolio exposure to Covance Softsol should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
No Data Found
Quality key factors
Factor
Value
Sales Growth (5y)
54.50%
EBIT Growth (5y)
546.37%
EBIT to Interest (avg)
4.61
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-1.27
Sales to Capital Employed (avg)
0.88
Tax Ratio
26.09%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
-32.56%
ROE (avg)
16.83%
Valuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
21
Price to Book Value
2.22
EV to EBIT
3.84
EV to EBITDA
3.80
EV to Capital Employed
-3.46
EV to Sales
1.09
PEG Ratio
0.07
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
20.38%
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Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
RSI
Bearish
Bearish
Bollinger Bands
Sideways
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Dow Theory
No Trend
Bullish
OBV
Bullish
Bullish
Technical Movement
19What is working for the Company
PAT(Latest six months)
Higher at Rs 18.91 cr
NET SALES(Q)
Highest at Rs 42.69 cr
-3What is not working for the Company
INTEREST(Q)
Highest at Rs 1.93 cr
Loading Valuation Snapshot...
Here's what is working for Covance Softsol
Profit After Tax (PAT) - Latest six months
At Rs 18.91 cr has Grown at 2,029.59%
Year on Year (YoY)MOJO Watch
PAT trend is very positive
PAT (Rs Cr)
Profit After Tax (PAT) - Latest six months
Higher at Rs 18.91 cr
than preceding 12 month period ended Mar 2026 of Rs 14.48 crMOJO Watch
In the half year the company has already crossed PAT of the previous twelve months
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 42.69 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 42.69 cr has Grown at 34.0% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 31.87 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for Covance Softsol
Interest - Quarterly
At Rs 1.93 cr has Grown at 75.45%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Interest - Quarterly
Highest at Rs 1.93 cr
in the last five quarters and Increased by 75.45 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)