Expleo Solutions Ltd: Is It a Deep Value Opportunity?

Expleo Solutions Ltd has a deep value score of 63/100 (rated Strong). This score is calculated from three components

• Earnings Score: 15/40 — measures PAT growth momentum across quarters
• Underperformance Score: 20/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
• Quality Score: 0/25 — operational quality (margins, revenue growth, valuation)

Expleo Solutions Ltd's quarterly profit (PAT) growth trajectory

• Latest Quarter PAT Growth (QoQ): +88%
• Previous Quarter PAT Growth (QoQ): -44%
• 2 Quarters Ago PAT Growth (QoQ): +95%
• PAT Acceleration: -3.2pp (profits are decelerating)
• 1 consecutive quarter of positive PAT growth

Expleo Solutions Ltd is underperforming the market despite improving earnings — this is the core deep value thesis

• 1-Year Return vs Nifty 500: -35%
• 6-Month Return vs Nifty 500: -16%
• 3-Month Return vs Nifty 500: -7%
• Yet average quarterly PAT growth is +46% — earnings are improving
• The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.

Expleo Solutions Ltd's earnings momentum is Decelerating — growth rate is slowing.

• PAT QoQ progression: +95% → -44% → +88% (2Q ago → 1Q ago → latest)
• Acceleration: -3.2pp
• PAT YoY Growth: +75%

Expleo Solutions Ltd's valuation metrics

• Price-to-Earnings (PE): 9.9x
• Price-to-Book (PB): 1.6x
• PEG Ratio: 0.5x
• Margin of Safety: +61% (appears undervalued)

Expleo Solutions Ltd's revenue and margin trends

• Latest Quarter Revenue Growth (QoQ): +2%
• Average Quarterly Revenue Growth: +3%
• Revenue Acceleration: -3.2pp
• Latest OPM Change: -1.6pp (margins contracting)
• Average OPM Change: +1.2pp
• Revenue YoY: +12%

Expleo Solutions Ltd's trailing twelve month (TTM) performance

• TTM PAT: ₹124 Cr
• TTM PAT Growth: +20.4% YoY
• TTM Revenue: ₹1,000 Cr
• TTM Revenue Growth: +8.1% YoY
• TTM Operating Margin: 14.8%

Expleo Solutions Ltd key facts

• Sector: IT - Software
• Market Cap: ₹1.2K Cr
• Rank in IT - Software: #9 by value score
• Overall rank among all deep value stocks: #114

Expleo Solutions Ltd shows moderate deep value signals — rated Strong with some positive indicators.

• Value Score: 63/100 (Strong)
• Earnings: Not accelerating
• 1Y Underperformance: -35% vs Nifty 500

Other deep value stocks in IT - Software

• R Systems International Ltd — Score 69/100, Strong, earnings accelerating
• Magellanic Cloud Ltd — Score 66/100, Strong, earnings accelerating
• Birlasoft Ltd — Score 60/100, Strong, earnings accelerating
• Saksoft Ltd — Score 59/100, Average, earnings accelerating
• Sahana Systems Ltd — Score 58/100, Average
• Mastek Ltd — Score 58/100, Average

IT - Software deep value sector overview

• 13 deep value stocks in this sector
• Average value score: 52/100
• Avg PAT acceleration: +8.7pp
• Top pick: Magellanic Cloud Ltd

Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.

The deep value score (0-100) combines three factors:

- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)

Higher score indicates a stronger contrarian research signal.