Target: ₹190

CMP: ₹157.75

Saksoft is a digital transformation partner that assists customers to automate, modernize and manage IT systems through a combination of domain-specific technology solutions, and solution accelerators from consulting to support.

The company has been operating for nearly two decades, with 16 locations covering the US, UK, Asia Pacific and Europe. The key verticals that the company operations are FinTech, Telecom and Utilities, Transportation and Logistics, Public Sector, Retail and Healthcare.

The company’s target market is the middle segment, companies typically USD 100 Million to ₹3 billion by revenue size. The company is trying to create more and more niches in a marketplace that is getting increasingly crowded. And that’s where the company sees success.

The company is quite hopeful that if there is a recession in the US, the impact on company, should not be as significant from a demand side as it would be for the larger customers. As The company’s target market is middle segment, specifically fast-growing companies in this sector, which are generally less affected by economic slowdowns.

We believe with the company’s strong financials, debt-free status, increasing repeat orders demonstrating client retention ability, and increasing larger deal wins, the company is well-positioned to continue its upward trajectory and thereby we value the stock at a target price of ₹190 with a P/E of 17x based on an EPS of ₹11 (FY25).